THE DEAL WHEEL 

How to Build a 4-Person SMB Deal Team:

The Deal Wheel

This is the Cliff Notes of a popular presentation I’ve done at the IBBA (Int’l Business Brokers Association) a few times, called “The Team Approach to Deal Making” where I teach how I utilized a small team, working together on every deal, to outproduce “One Man Show” competitors.

While this is geared towards M&A and Business Brokerage professionals, I trust you will be able to derive lessons that will help you do more deals if you’re a Whale Shark (see pinned thread), or anyone wanting a team/systematic approach to buying or selling multiple SMBs.

 

First, let’s talk about the four distinct skill sets involved in systematically buying/selling businesses so you can build your dream team. 

They are: – Marketer – Inside Sales – Analyst – Producer

The truth is, most of us aren’t good at all four skill sets. And the rare unicorns among us that can do all of these things, start-to-finish, with excellence, should still build a team because you’ll quickly be limited by hours in the day of what one person can achieve.

MARKETER:

Your team’s Marketer exists to digitally storytelling and create demand. They tell stories of successful deals you’ve done and current opportunities available to attract interested parties to reach out to your Deal Team.

INSIDE SALES:(aka BizDev, etc.)

Think, “Setup Guy/Gal”. An extreme people person that is a master at rapport building and follow-up. This person Filters, Relationship-Builds, Pre-Sells, and sets up the Producer for success. They are emailing and on the phone more than anyone

ANALYST:

If your Producer is James Bond or Ethan Hunt out mixing it up in the field, the Analyst is the guy in the van talking to them on their earpiece, telling them which way to turn and disabling the security systems. A crack details person that equips you with needed data.

PRODUCER: (aka Broker, Advisor, etc)

The Closer. They have the highest stakes conversations at critical deal moments and reach agreements with all parties. A master of leading face-to-face or virtual meetings. Persuasive, Authoritative, and high EQ.

A great CRM system combined with a great team working together in the “Deal Wheel” setup has enabled our brokerage to become World-Class in productivity and Success Rate these last eight years of business.

Here are the steps we take and who is responsible for each step (M) Marketer, (IS) Inside Sales, (A) Analyst, and (P) Producer. And remember, this isn’t a linear path. It’s a circular wheel that never ends.

 

The “end” brings us right back to the beginning, so you can start anywhere.

(M) Runs campaigns to attract the eyeballs of SMB owners potentially interested in Selling.

2- (IS) Has initial convos with the owners and screens them for motivation (how serious they are about selling) and fit (size, industry, geographic parameters). Asks for numbers.

(A) Analyzes the financials and values of the company, asking clarifying questions as needed.

4- (IS) If it’s a deal team likes/wants after initial analysis, the IS sets an appointment up with Seller and Producer.

5- (P) Walks Seller through Valuation and Presents Engagement Agreement. Ensures same-page agreement on valuation and timeline expectations. Signs up Seller as Client.

6, 7, 8- (simultaneous, packaging phase) (IS) builds a short list of interested Buyers from the mining CRM database. Starts teasing them about the new deal they’ll like. (A) Converts Analysis to the numbers part of CIM (M) Writes sales copy, the story part of CIM, builds ads for the deal

9- (P) Reviews and Final Edits of CIM and gets CIM approval from Seller and records video interview w/Seller shown to qualified Buyers post-NDA.

10- (M) Launches packaged deal internally to the Buyer distribution list, then places ads on marketplaces 7-10 days later.

11- (IS) Reaches out to Buyer candidates once they’ve signed NDA, builds rapport, tries to ensure they’re legit, then sends them the CIM to review.

12- (IS) Follows up to see what they thought of CIM and if they want to take the next steps and meet Producer and Seller. Sets meet.

13- (P) Meets Buyer candidates already 90% sure they want to Buy after their convos with IS and review of video and CIM. Starts talking about deal structure. Sets after-hours tours and meetings with Sellers for the most promising candidates.

14- (P) Leads initial Seller Meetings

15- (P or IS) Follows-up post-Seller-meeting to see if the Buyer candidate will be submitting LOI

16- (P) Negotiates LOI w/Buyer and presents LOI to Seller. Gets it signed.

17- (P) Shepherds deal LOI to Closing, working through DD, 3rd party financing approvals, solving problems as they arise, running a weekly meeting, and working with both sides’ CPAs and Attorneys. It saves deals several times. This stage is where Producer spends 80% of their time.

18- (M) Creates Press Releases, etc., to promote successful closing, spin-off campaigns from it to other similar companies to see it and also want to sell w/us.

19- (IS) Congratulates Buyer and Seller (whom they already have a relationship with) and ask them for referrals.

20 The wheel starts all over again as (IS) calls referrals and (M) tells the success stories to the public at large. The virtuous cycle continues!

 

SUMMARY:

It’s incredibly inefficient to try to do all this by yourself. And you probably suck at some parts of this. Build. Your. Deal. Team.

Work a system. High tech. High touch. Great teamwork will win the day!!!!

PS: If you want to sell your business (1-20M revenue) through our incredible Sell-Side deal team, email: MIKE GARZA & DUSTY BLOCK.

And if you want to Buy a business from us, be sure you are on our internal deal distribution list on our WEBSITE!

 

– CLINT FIORE.

BISON BUSINESS, CEO. 

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