King & King Business Advisors

Though we try very hard to answer all inquiries in a timely manner, the number-one complaint I hear from buyers is that many brokers don’t respond to their inquiries.

With at least ten buyers for every seller and very few really good businesses available, most brokers are inundated with buyer inquiries. Unless YOU provide information to separate yourself from the rest of the pack, you won’t make much progress.

The biggest mistake buyers make is to email an inquiry for a listing of interest and state something like: “Please send more info.” That email is going right to the delete folder – guaranteed!

The best one I ever received was: “Please send me three years’ tax returns, all financials and the address for this company.” While that is an extreme example, no broker/seller is going to provide you with any meaningful data until they know (i) who you are, (ii) if you’re qualified, and (iii) you have executed the appropriate non-disclosure documents or other forms they may require.

Your emails and calls are your “sales pitch”.

You must convey three things to a broker or seller:

You are serious
You have a “need” to buy (they are not interested in more lookers)
You have the means to complete a deal
From now on, when you contact a broker or seller online, or by phone, your comments should strictly be: “I am interested in this listing. I am ready to buy a business immediately. Please send me the necessary non-disclosure forms and any other documents you may require so I can get additional information.”

With every email, include your full name, phone number and email address.

I believe it’s a great idea to also call them – especially if you get an auto-response to an email inquiry. Repeat your introduction and let them know that you have also emailed them. If a broker gets two contacts from you, any decent one will put you at the top of their list.

Write down the listing number, a brief description of it and where you found it. You may have a few prospective businesses on the go and you want to have the information handy.

When they send you the forms, complete and return them immediately.

If you do not hear back within two days of any inquiry, contact them again.

The lesson here is simple: Take control of the process. Distinguish yourself from all the “tire-kickers”. Unfortunately, you may meet some uncooperative brokers. Chase them down – get the information you need. They want to sell their listings, but they must spend their time with buyers, not lookers. Follow these steps and you will make an impact.

A view of Wall Street from the steps of Federal Hall in lower Manhattan.

For YAHOO NEWS By Peter Coy Peter Coy – Fri Feb 20, 8:08 am ET

Look out, New York. Washington is gaining on you.

As the nation’s most populous metro area feels Wall Street’s pain, the fourth-largest — Washington — is barely sensing the recession. In fact, Moody’s Economy.com estimates that metro Washington’s economy will actually grow 2.5% from mid-2008 through mid-2010. New York’s economy is expected to shrink 4.2%.

It wouldn’t be the first time that Washington benefited from a national crisis. Back in 1930 the District of Columbia was a quiet Southern town, scoffed at by New York sophisticates. But as the federal government ramped up to fight first the Great Depression and then World War II, its population grew 65% in two decades, vs. just 14% for New York City.

This time Washington is getting a boost from government spending to fight the recession and fix the financial system, as well as the ongoing expenses of fighting wars in Iraq and Afghanistan and promoting homeland security. While President Barack Obama pointedly left Washington for Denver to sign the $787 billion stimulus package on Feb. 17, locals expect the metro area to garner a big share of the dollars.

Where Home Sales Rise

“Oversight alone will (mean) tons of new jobs,” enthuses Jill Landsman, a spokeswoman for the Northern Virginia Assn. of Realtors, who says the pace of home sales has picked up over the past year even as prices have continued to fall.

Job-seeking Wall Streeters who jump on Amtrak’s Acela to Washington may be dismayed to find that the maximum pay for an FDIC bank review examiner is close to $180,000. That’s great for most folks, but paltry next to the bonus-swelled compensation many bankers are used to. The pay can be a lot better, though, at the Beltway Bandit consulting firms that are ramping up to assist the FDIC, Treasury Dept., and others. Consulting jobs for senior specialists in finance “can pay north of $200 an hour,” says Andrew Reina, a practice director for risk consultant Ajilon Solutions.

Companies such as Computer Sciences Corp. (NYSE:CSC - News), Science Applications International Corp., or SAIC (NYSE:SAI - News), and Booz Allen Hamilton employ tens of thousands of people in the Washington area and continue to expand. Even before the current crisis, professional and business services, which include private-sector lawyers, accountants, engineers, and consultants, made up 21% of metro Washington’s annual economic output, even more than the 20% made up by government itself, according to a BusinessWeek estimate based on government data. The financial crisis “creates opportunities for companies like ours” to provide expert assistance, says David Booth, Computer Sciences Corp.’s president of global sales and marketing.

The New Talent Magnet

By at least one measure, it’s Washington rather than New York that’s attracting the best and brightest these days: According to George Mason University’s Center for Regional Analysis, metro Washington leads the nation in the share of jobs that are in high-tech and the share of workers with advanced degrees.

As for New York, the mix — and the outlook — is bleak. Finance typically accounts for 32% of the metro region’s output, mostly because finance jobs pay so well. But pay limits, combined with job cuts, will harm everything from condos to car dealerships. New York State Labor Dept. analyst James Brown says, “There will still be a need for capital-raising, but it’s pretty clear the sector won’t be as profitable or as large.”

Adds Moody’s Economy.com economist Marisa Di Natale: “New York, we think, is going to have a pretty severe recession.”

Staging a Comeback?

In one measure of how dire things have gotten for New York’s finance sector, Mayor Michael Bloomberg on Feb. 18 announced a $45 million plan to retrain investment bankers, traders, and others who have lost jobs on Wall Street. The money will also provide startup money and office space for new businesses by the former Wall Streeters. According to The New York Times, city officials expect New York to lose 65,000 jobs in finance during this recession, and not gain them back any time soon.

“We say good luck to the people in New York. We know they’re going through some tough times,” says Arnold Punaro, general manager of SAIC’s Washington operations.

Then again, there is one resource that New York has in abundance, and that’s self-confidence. Regional Plan Assn. President Robert Yaro, whose nonprofit organization coordinates planning in a 31-county area, says New York has been declared dead over and over since the 1880s, but always springs back.

“The fundamental strength,” says Yaro, “is that every 24-year-old in America and the world wants to be here. Because every other place seems kind of sleepy.”

Excerpted from Diomo.com, by permission:

Meeting with sellers is a crucial step in the business buying process. It is so important that you ask good questions. If not, you will waste time, miss out on good opportunities, or overlook a critical aspect of the business that can haunt you later.
Keep in mind that sellers may have very rehearsed answers and so you need to mix up your questions, take great notes, and look for any hesitation when they reply.
If the seller has an intermediary, (broker), present, your questions and conversations should be directed towards the seller – he/she needs to own the answers to your questions.
There are at least 36 key questions you must ask every seller. Here are a few of them:
• Provide me with an overview of the company from the day you started until today - what have been the successes and failures?
• What do you do everyday?
• Do you anticipate any problems with me getting credit from your suppliers
• Do any of your customers or suppliers represent more than 10% of your business? If yes, who are they?
• Why are you selling?
• What is it that you like best and least about the business?
• How did you arrive at your asking price?
• If you get hit by a cement truck today, who would run the business tomorrow?
• Do your employees know the business is for sale?
• What is the ideal profile of the ideal buyer for this business?
• What can be done to build the business?
• How long will it take me to really learn this business?
• How long can I count on you to train me after the sale?
• What keeps you up at night about the business?
• What are the details of the lease? How long? Any options? Do you anticipate any problems with the landlord assigning it to me or entering into a new lease?
• How much vacation do you take (not that you’re looking for time off…rather, you want to know if they have adequate staff that will allow you time away)
• Are you the only owner?
• Who are the key employees? Any manager in place? Are there any employees that are critical to the business?
• Are you willing to finance part of the purchase? If not, why?
Answers and Research

You want to get enough answers and detail to your questions so you can immediately focus on researching the business, the industry, the competition, etc. Although the Internet allows prospective business buyers to do phenomenal research and quickly, in today’s environment, good businesses sell fast - very fast. As such, you may not have a lot of time between a seller meeting and preparing an offer. Obviously, you’ll want to do your homework before moving to an offer so be sure to get enough information in your seller meeting to conduct your research. On this note, always ask the seller if he/she has copies of any trade publications. They’re a great source for additional information.
Seeing Yourself in The Business

If you take away anything from a seller meeting, it should be the answer to these four questions:
1. Do I like the business?
2. Can I see myself running it?
3. Do I like the seller?
4. Do I trust them?
Questions 1 and 2 are obvious. Questions 3 and 4 are critical. If you like the seller and trust them, chances are you and they will be able to work through any and all of the deal challenges that will arise. Trust is also paramount. If not, you will always keep thinking they are hiding something.
Impress The Seller

If you have any chance of getting the seller to finance the deal, or bend more they would normally on the deal terms, you need to leave them feeling that “you’re the one” to buy their business. If they believe that you can not only get the deal done, but also run the business successfully, they will go out of their way to make the deal happen.
So there you have it: a series of key questions to ask the seller, and the key points to focus on as your goal when you meet them. Good luck!

“My name is Keri Zouras and I’ve been in the gas station and convenience store business for over 20 years. In that time I’ve bought and sold many gas stations and convenience stores. I met Jim King several years ago and now Jim handles all my transactions in buying and selling. He closes quickly, gets me the price I want and helps me to move on to my next project… He does a great job, its smooth, its seamless, you’re in great hands with Jim King and I highly recommend him, he’s awesome and we just love him.” Author: Keri Zouras-The Z Group Inc., Clarksville, MD.

Mid-Atlantic Business Intermediaries Association (MABIA)
11876 Sunrise Valley Dr., Suite 201
Reston, VA 20191

NEWS RELEASE…NEWS RELEASE…NEWS RELEASE
For Immediate Release Contact: James M. King
January 13, 2009 Phone: (410) 303-6378

Carroll County, Maryland Business Executive, James M. King
Elected President of the Mid-Atlantic Business Intermediaries Association

Mount Airy, Maryland – James M. King, President of King & King Business Advisors in Mount Airy, Maryland, was elected to serve as the 2009 President of the professional association. MABIA is a not-for-profit professional trade association whose members are professional Business Brokers, Business Intermediaries, and other allied professionals who provide support to the business transaction community.
MABIA members are actively involved in assisting their clients in selling, buying, and evaluating businesses. MABIA represents the interests of the business brokerage profession within the State of Maryland, the Commonwealth of Virginia, the District of Columbia, and the State of Delaware.
MABIA is a member chapter of the International Business Brokers Association (IBBA) headquartered in Chicago, Illinois. The IBBA is the largest international non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of business brokerage and mergers and acquisitions.
Mr. King is the owner of King & King Business Advisors an “All-In-One-Place” fully-integrated “BusinessOwnership/M&A” services firm. King & King’s local expertise and full array of services makes the business buying and selling experience much easier for both the sellers and the buyers of businesses.

On Monday, January 12, 2009 King & King Business Advisors will launch an agressive advertising program never before seen in the business brokerage community. With help from the professionals at WMAL Radio in Washington D,C, King & King has created a series of radio commercials designed to reach out to business sellers and business buyers. Additionally, ads will be aired to reach out to those that business sellers and business buyers count on for guidance and advice ie, attorneys, accountants, bankers, etc.

King & King’s first ad features their CBI certified brokers status, experience and proven ten step marketing program. To listen to the first ad click on this link. WMAL 630 Radio ad

August 10, 2008 — Pasadena, Maryland
In the early morning hours on Sunday, August 10, 2008 Pasadena Maryland we meet, Me, the Broker, Hassan Channaoui, the Buyer, Glenn Brumwell, the Seller, and Justin McInerney, a Settlement Attorney from Transaction Trust Services, (a King & King Business Advisors Prestige Partner), come together one last time to finalize all of the paperwork, write checks and exchange keys. It’s official, we are proud to announce that King & King Business Advisors was selected by both the Seller and Buyer to represent them in this completed business transaction. The picture in this article depicts the Buyer-Hassan Channaoui (left) and Seller-Glenn Brunwell (right).
Congratulations Glenn on the sale of your business, Brumwells One Hour Heating & Air Conditioning and, Congratulations Hassan on your acquisition. Good Luck to you both.
Jim King, President
King & King Business Advisors

July 18, 2008, Woodbine, Maryland

Mr. James M. King, President and Founder of King & King Business Advisors, is proud to announce that Mssrs. Wayne and Mark Kraus have joined the firm to form a new industry specific consulting and sales group which will work exclusively with the owner’s of Bowling, Skating, Arcade, and other Recreation related businesses assisting them in developing successful succession plans and implementing business process improvements to make their businesses more profitable and increase their equity value.

Wayne Kraus has been in the Bowling & Family Entertainment business as an owner and operator in the mid-atlantic region for over forty (40) years. Most recently Wayne was the owner of Thunderhead Lanes Bowl & Grill located in Taneytown, Maryland. In December of 2007 ,with King & King’s assistance, Wayne sold Thunderhead in a multi-million dollar transaction to a local entrepreneur. After a short period of rest and relaxation Wayne has now decided to go back to work helping other center owners to increase their gross sales, drive down expenses and build real equity value. Additionally, Wayne will be traveling throughout the region working with center owners to find suitable buyers for their businesses.

Mark Kraus has also worked several years in the industry, most recently serving as the General Manager of Thunderhead Lanes Bowl & Grill. Mark has a firm grasp on the day-to-day operations of the business and an uncanny understanding of the market and the consumer. Additionally, Mark turned a profit above and beyond industry standards and benchmarks year in and year out. Mark will be working with Wayne on consulting engagements and assisting buyers and sellers with transactions.

Welcome aboard Wayne and Mark, may our association last a long time and bring many valueable services to our Entertainment Industry clients.

Many of you that know me know that I am a dyed in the wool, flag waving, flag wearing, Harley-Davidson riding, “love it, or leave it,” in your face Patriot with a capital P. All year long I look forward to Memorial Day weekend. For me it marks the official beginning of the summer season and it’s the one weekend in the year when I can ride my Harley into Washington DC with 400,000 +/- of my motorcycle riding friends to express my sincere concern for all POW’s & MIA’s and to show my gratitude and appreciation for all of the Veterans that have ever served our country.

There are a few Veterans that have had such a huge influence in my life that I want to thank for their service to our country and for always being there for me:

David King, U.S. Navy WWII (my Dad)
Herbert Ernest Daniels, U.S. Army - Paratrooper WWII (my Uncle)
Herbert King, U.S. Navy fought in WWII (my Uncle)
William Daniels, U.S. Army – Paratrooper WWII (my Uncle)
William Daniels, Jr., U.S. Navy fought in Viet Nam (my Cousin)
James Barbour, U.S. Air Force (Father-in-Law)
Herbert Lee Davis, U.S. Army fought in Viet Nam (my Brother)
Frank Davis, U. S. Navy (Brother)
Ernest Daniels, U.S. Army (Cousin)
Regis Canny, U.S. Air Force (Brother-In-Law)
Lennie King, Sgt. U.S. Marines (Brother)
Matthew Wayne Walker, U.S. Air Force (my Step-Son)

Whether it is rainy and cold or absolutely beautiful like it was this year, it is always a humbling experience to be in the presence of so many people that take time out of their lives to pay their respects to our fallen heroes and express their gratitude to all other Veterans for their service to our country.

On the Sunday of the Memorial Day weekend we gather at the local Harley-Davidson dealership in Frederick, Maryland in the early morning hours to share coffee and donuts, seemingly endless war stories, and to get organized for the ride into the city. At 9AM we leave, approximately 2,000 of us. We travel south on Maryland Route 270 with Police escorts to our destination the Viet Nam War Memorial (“The Wall”). All along the way we’re greeted by people who have stopped their cars on the shoulder of the road to acknowledge us as we go by in mass with our flags waving and tears in our goggle covered eyes. On the bridges and overpasses there are individuals and families, Moms and Dads with kids waving their flags and watching us as we slowly go by, two abreast, the line stretching for miles and miles.

Once we arrive in the city we gather in the Pentagon parking lot and wait for the official “Ride To The Wall” to begin. The crowd is made up of Business Owners, Doctors, Lawyers, Construction Workers, Retirees, Cab Drivers, Firemen, Policemen, Housewives, Realtors, young people and old people, Republicans and Democrats. There are no fights, no disturbances, no drunks, no stolen purses. There is however, a pervasive sense of gratitude and solemnity that is apparent on the faces of all those around you. At the end of the day we gather up our stuff, (trash included), and leave the city headed for our homes. Some will have to travel all the way to California to get home, some to Florida, some to probably every other state in the union.

When my wife and I get home we always watch the evening news to see how they report on the event. Of course it goes without saying, the 4-5 seconds of news coverage we get consists of one small shot of a few moving motorcycles and then the leader of Rolling Thunder shaking hands with the President. There are no interviews with any of the riders or the spectators to ask them why they participate in the annual “Ride To The Wall.” There are no helicopter shots to show the viewing audience the motorcycle riders staged in the Pentagon parking lots waiting for the “Ride To The Wall” start. There is never an interview with a Police official or other government person to tell us how the city prepares for this event, or how it has grown over the years, or how this event compares to other similar sized events held in the city. It is at the end of this day, after yet another disappointing showing on the part of the national news media that I wonder, how much coverage would we have gotten if there were 30-40 of us gathered on some street corner with protest signs cussing at our government and chanting God ______ America? My 55 years on this earth and my many years of observing the way the national news media works tells me there would most likely be 10 reporters for every single protestor.

I have said my piece and I thank all of the Veterans who have ever served for giving me the freedom to do so. I, we, owe you all a debt that can never be repaid.

I have pasted below a few pictures from the day:

What Do Business Brokers Do? (excerpted from Volume 8, Issue 13, IBBA Weekly Communication for April 8, 2008)

Shari Bayne, CBB, CBI
Vanguard Resource Group, San Diego CA
Over the years, I’ve run into many women who are intimidated by the fact that the majority of business brokers are male. They seem to think that just because they are female, they are at a disadvantage in business brokerage. As a result of this widespread point of view, “Women’s Forums” have been formed in both IBBA and CABB; forums created, I guess, to help us poor, disadvantaged female brokers compete with the vast army of bullying male business brokers.

Enough of this nonsense. Is business brokerage really different for women than for men? I’ve given this much thought, and after looking back at my experiences in this industry, I’ve come to the conclusion that women actually possess more innate skills for successful business brokerage than men do.

I’ve been asked by many people, what it takes to be a successful business broker. We all know there’s no college degree that you can obtain for this career, so what does it take to be successful? By looking at what we do every day, we can get insight into what it takes to be successful. Here’s my list of what a business broker does:

Prospects for listings

Presents brokerage services to business owners

Assists the business owner with appropriate pricing

Lists the business for sale

Prepares a professional offering package to marketplace

Interviews and qualifyies potential buyers

Presents the business to potential buyers

Assists with an offer to purchase

Helps the business owner to evaluate offers

Organizes the due diligence process

Follows through to a success closing and transfer

To sell a business, the broker must first find a business owner who wants to sell; convince the owner that they have the ability to assist them; help the owner price the business; prepare the marketing package; and, then market the business to prospective buyers. When a buyer has been identified, the broker should be able to assist the buyer and seller in the negotiation of a purchase contract and assist both parties in the due diligence and closing procedures. All of this can be done successfully if the broker has the ability to listen to and understand the motivation of both the seller and the buyer. And ladies, let’s face it, we are the communication experts. While our male counterparts may be able to grunt and groan out the latest scores in the NFL better than we can, we are the masters of person-to-person talk.

So, since we know we’re the best communicators out there, let’s look at the entire skill set needed for business brokerage to see if we lack anything in other areas. Here’s my list of needed skills:

Sales and marketing skills

Persistence

People skills (communication, empathy and listening)

Problem solving

Honesty and trustworthiness

Organization skills and attention to details

Life experiences and a willingness to learn

Every broker should implement a marketing plan to target potential business sellers, and persistence in required; the phone won’t ring simply because you have made the choice to become a business broker. If there are problems with the business, the broker should be able to understand them fully to ascertain whether or not these problems can be overcome. The broker should possess the quality of honesty, and use it to confront issues and resolve them. And, finally, all successful business brokers must have organizational skills and be able to pay close attention to the details of any deal.

No offense, men, but I think that the typical woman in business excels in persistence, honesty and organizational skills.

It’s also certainly true that a successful business broker should have a background in business ownership, business management, business financial management and/or business sales and marketing. Fortunately, our society has given us women many opportunities to gain these business skills over the years. And, in addition, there numerous opportunities for anyone - male or female - to get training in key areas of business brokerage through CABB and IBBA. So, if you are a woman who might has excellent sales and marketing skills, but don’t know much about business financials or business management, the doors are open for you to get training.

So in closing, I have just this to say: Ladies, start your engines! Let’s go out and show the industry how good we are at being successful business brokers.