TENNESSEE BUSINESS SALES / CBI
The sale of a closely business can be one of the most significant financial transactions in the life of a business owner and it will be imperative that the best and most competent representation is secured. A small business typically will represent a very large component of family wealth and the company owner will be interested in maximizing this value when the business is sold. The field of business brokerage is very specialized and requires a good understanding of the accounting, finance, and legal disciplines, as well as a competency in due diligence, marketing, and negotiating. A CBI professional brings value to the process and can help both buyers and sellers navigate the acquisition and sale process in a methodical fashion and assist in achieving a successful transaction. The expert guidance provided by a CBI will bring peace of mind and security to a process that can be both challenging and complex.
The Certified Business Intermediary (CBI) designation is a credential earned by Business Intermediaries from the IBBA and is awarded to professionals based upon completing a rigorous education and the demonstration of superior knowledge of business intermediary skills. This highly sought after designation has been awarded to less than eight hundred individuals on an international basis. CBI’s are educated and experienced business brokers that have amassed the expertise and skills to facilitate confidential marketing programs, prepare business valuations, manage terms sheet negotiations and oversee many other complex issues involved in a business sale transaction. CBI professionals have satisfied the work experience, academic requirements, and ethical standards of the IBBA. Consulting with a Certified Business Intermediary (CBI) will greatly assist both parties (buyers and sellers) in optimizing the transaction and navigating the myriad of issues involved in selling or purchasing a privately held company. In states where there is no licensure requirement of business intermediaries, it is even more critical that company owners look for the credentials of the firms being considered for representation.
CBI’s have 3 distinct qualifications:
- CBI’s have access to the most up-to-date industry data related to financing, contracts, valuation, financing, taxes, legislation and other areas with respect to business transactions.
- CBI’s have a higher level of education, experience, an training enabling them to handle the negotiation, marketing, and management of the complex details involved in the purchase or sale of privately held business.
- CBI’s are affiliated with hundreds of other intermediaries and professional partners (CPA’s, Attorney’s, etc) on a local, national, and international basis.
Requirements for CBI Credentials:
· Industry Experience – CBI’s are required to have a minimum of three years full-time business brokerage experience within the prior ten years, and must be actively involved in the deal-making process, or management of the process.
· Professional Ethics – CBI’s are required to possess a thorough understanding and pledge to uphold the Association’s high Code of Ethics.
· Education – CBI’s must complete a rigorous advanced study curriculum involving a minimum of 68 class hours of business brokerage courses in addition to attending IBBA Conferences for professional development, continuing education, and periodic re-certification
· Examination/Testing – CBI’s must pass a difficult and comprehensive examination once all of the requirements are met.
About the Author:
Michael Fekkes is a Senior Broker at Enlign Business Brokers in Nashville, TN. Michael is a Certified Business Intermediary CBI®, a member of the International Business Brokers Association IBBA®, as well as a former business owner. He can be reached at 615.535.1150 or mfekkes@enlign.com. Enlign Business Brokers (www.enlign.com) is a Professional Services Firm serving the Southeast that is headquartered in Raleigh, NC with regional offices in Nashville, TN and Atlanta, GA. providing business intermediary services ranging from valuation and sale to exit & succession planning strategies.
Cactus on 14 Apr 2011 at 7:03 am #
Kudos to you! I hadn’t tughoht of that!