Activity
Mon
Wed
Fri
Sun
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
What is this?
Less
More

Owned by Byron

Learn to sell businesses. Become a business broker from active M&A advisors who've closed ~$100M in deals. Tools, scripts, templates & live coaching.

Skoolers
153.3k
Free
22 contributions to Business Broker Circle
The certifications were worth millions. And they're worth nothing.
Back to the $4.3M deal I posted 2 weeks ago, because there's a second lesson in it that's arguably bigger than the first. This business holds certifications that give it access to contracts most competitors simply cannot bid on. Those certifications are a genuine moat. They're a real part of why the business earns what it earns. They are also owner-dependent and non-transferable. Meaning: the day the owner sells, the certifications leave with him. The buyer inherits the revenue history but not the mechanism that produced it. So what is that business actually worth? Not the multiple you'd put on the trailing earnings. You have to separate the earnings into two piles — what survives the transfer and what doesn't — and value them completely differently. In some deals the certified revenue is worth close to zero to a buyer who can't recertify. This is the part of valuation that spreadsheets don't catch. SDE and EBITDA tell you what the business earned. They don't tell you what the business will keep earning under new ownership, and only the second number is what a buyer is really purchasing. The general form of this question, which applies to nearly every small business you'll ever look at: - What produces the revenue? - Does that thing transfer with the sale? - If not, what's left? Owner relationships. A personal license. A founder's reputation in a small town. A certification tied to the owner's status. All of it looks like enterprise value on a P&L. Some of it walks out the door at closing. Ask that question early and you'll price deals better than brokers with ten years on you.
Unlicensed States
Is there a list available for the states that do not require a business broker's License?
Unlicensed States
1 like • 7d
Thanks for the reminder, here’s the list: Alabama, Arkansas, Connecticut, Delaware, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Virginia, West Virginia
Building a Team
Mentors I have had throughout the years have always taught me to lead from the front. As I venture into the Business Broker space. This week I dove head first and reached out to 5 individuals to simply see how they where doing? One lead to a conversation this morning and interesting enough he had a question for me as his online algorythms and interest have been coming up in the Business Acquisition space. He mentioned a few influencers and online individuals launching course that peaked his interest. I shared my vision and what I have in the works. It further peaked his interest and he shared that 1) he wants to purchase a business 2) he would like to work alongside me to grow it as a service he offers. We have a second call next week. Question for the group. Is it too early to potentially bring on an aspiring associate? He brings value as he has worked in the mutual funds and financial services space as well.
Building a Team
1 like • 9d
Great job and getting yourself out there already having conversations with people! My two cents on this is less about timing and more about your framework or structure to have an associate. I would think through roles and responsibilities, expectation on how much time your associate should put in a week, and what’s the plan for compensation. Rather than an associate, I see this more of a referral partnership. The businesses that he can’t buy or is outside of his buy box can be referred to you to sell. And as you find businesses that are looking to sell, you can give him the first opportunity to put in an offer. I have this type of referral partnership with a lot of buyers. I put them on a special email list where I send them off market deals first and I normally give them three weeks to put in an offer before I post it publicly. I’ll get quite several buyers interested just from that one email blast. This helps you as a business broker get offers to your sellers a lot faster than any other broker.
Broker to Broker Referrals
In the residential real estate space it is common practice to create an out of state broker to broker referral agreement. Commissions are always negotiable however can range in the lower/mid % range of GCI. Is this common in the business broker space?
Broker to Broker Referrals
1 like • 9d
Yes, same practice exists in Business Brokerage. If it’s in a state we need a real estate license, then we find a broker in that state to refer it to and take a referral fee. Typically it’s 10-25% - it’s all negotiable.
Franchise Sales | Transfers
Are their instances when owners of a franchise are attempting to sell or transfer their franchise? Would this be the same as an assumption subject to Franchisor Approval? Looking at this to see if it’s an avenue and marketplace that exists. Similar to those looking to get out of residential time shares. 😀
Franchise Sales | Transfers
1 like • 13d
Love the question. Yes, franchises are selling all the time. Some brokers create a niche for themselves with only selling franchises. They get really good an evaluating them and only choosing franchises they know will sell. When you find good franchises it can be easier to find buyers because of brand awareness, systems, and support from the franchisor. However, If a franchise is failing— its just as hard to get rid of it like a time share. If the franchise is successful, it’ll sell just like any successful business with a few caveats. 1. The franchisor usually has give their approval of any buyer and put the buyer through the franchisor requirements to be qualified as a franchisee (addtl hurdles buyers have to go through) 2. There is usually a change fee tacked on by the franchisor— could be anywhere from $5-$20K. 3. Some franchisees give the franchisor the “first right of refusal” — so you have to make sure the franchisors has passed on it in writing before you market the business.
1-10 of 22
Byron Folau
3
42 points to level up
@byron-folau-8021
Partner at Torchline Advisors (~$100M closed) & co-founder of Business Broker Circle — training community for aspiring business brokers.

Active 19h ago
Joined Jul 30, 2026
salt lake city, Utah
Powered by