How to Build Your Deal Team

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THE DEAL WHEEL How to Build a 4-Person SMB Deal Team : 🧵

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 4 distinct skillsets 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 4 skillsets. 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're going to quickly be limited by hours in the day of what one person can achieve.

MARKETER: Your team's Marketer exists to digitally storytell 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 their 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 is what has enabled our brokerage to become World-Class in productivity and Success Rate these last 8 years of business.

Here's 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.

1- (M) Runs campaigns to attract 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.

3- (A) Analyzes the financials and values 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 short list of interested Buyers from mining CRM database. Starts teasing them about new deal they'll like. (A) Converts Analysis to the numbers part of CIM (M) Writes sales copy, story part of CIM, builds ads for deal

9- (P) Reviews and Final Edits of CIM and gets approval of CIM from Seller and also records video interview w/Seller shown to qualified Buyers post-NDA. 10- (M) Launches packaged deal internally to 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 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 deal structure. Sets after-hours tours and meetings with Seller for most promising candidates. 14- (P) Leads initial Seller Meetings

15- (P or IS) Follows up post-Seller-meeting to see if 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. Saves deal several times. This stage is where Producer spends 80% of their time.

18- (M) Creates Press Release, 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 (who they already have 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 dusty@bisonbusiness.com And if you want to Buy a business from us, be sure you are on our internal deal distribution list, found on our website.