Our Target Markets
Positive Trends in the Mergers & Acquisitions Industry
Your Next Step
NYBB was established in 2003 and specializes in the confidential sale, acquisition, and valuation of small to mid-sized privately held businesses. Our clients include owners of privately held corporations, individual investors, and private equity groups. We primarily operate in the NY Metro geographic region, but also have robust national capabilities.
Our mission is to build NYBB into the most trusted M&A / Business Sales firm in the NY Metro market. We are achieving this goal by demonstrating that we are a team of consummate professionals who can consistently deliver value to all parties in the transaction, while strictly adhering to the highest ethical standards in the industry.
The Lower Mid-Market is the Primary Target Market for NYBB
Typically businesses with some management structure, clean financial records, scalable with annual sales from $5 million-$25 million. These businesses will normally be sold using a comprehensive marketing approach with would include Direct mail, Print advertising, E-mail blasts, Internet web marketing, Telemarketing, and Co-brokerage. These transactions require a substantial amount of data collection in order to create a complete OM (Offering Memorandum) and a solid, defensible value proposition. These transactions also require a detailed review of the financial statements so that the true financial condition of the business is understood and properly explained to the potential buyer.
We only accept these engagements with an upfront retainer. The financial participation by the seller (via retainer) demonstrates the seller’s commitment to making the deal happen. Having a truly motivated seller from the start is a key factor in our high success rate for deals of this size. The average sales cycle for lower mid-market businesses is between 7-12 Months with success fees in the 5%-9% range.
The average success fee per transaction in this market segment runs from $75,000 to $250,000.
The Small Business Market is a Secondary Market for NYBB
Small Business (Main Street):
Typically businesses that are owner-operated, with little or no management structure. These “Mom and Pop” businesses’ typically offer little opportunity for growth or expansion, are primarily cash-based, and most often will have annual sales under well under $2 million. These businesses will normally be sold via web posting on national websites like Bizbuysell.com, BusinessesforSale.com, BusinessesBroker.net, Bizquest.com, and others. Co-brokerage is also an effective selling strategy for these small businesses.
These businesses do not require a large write-up. They are typically seller-financed, due to the lack of viable financial statements. The sales cycle is generally between 6 to 9 months and these businesses are normally charged a success fee of 10%-12% on a contingent basis. (No retainer.)
The average success fee per transaction in this market segment runs from $20,000 to $75,000.
Positive Trends in the Small Business/ Lower Mid–Market M&A Industry:
Much has been written about the upcoming Baby Boomer wealth transfer that is about to occur. The following perspective on this market trend is quoted from an article taken from the highly respected, Association of Certified Merger and Acquisitions Professionals (ACMAP).
“To put the real middle-market baby boomer business transfer opportunity into perspective, consider this. The US Census Bureau estimates there are 5,697,759 businesses in the United States with one or more employees (usually many, many more) with sales totaling in excess of $22 trillion. Assuming a conservative 50% value to revenue ratio, that equates to a market value of $11 trillion.
While Census data indicates that many of these are small mom-and-pop businesses (79% of them in fact with under $1 million in sales), almost 21%, or 1.2 million, are middle-market firms with sales of $1 million to $1 billion annually. Collectively these 1.2 million firms had sales totaling $9.8 trillion and carry a conservative market value of $4.93 trillion. Most of these, based on population data, will be sold or otherwise disposed of by the baby boomers who own about 67% of those middle-market businesses.
In fact, based on the assumption that most of these will be disposed of by their owners at around age 65, there could be over 800,000 middle market
businesses with an estimated total value of $3.3 trillion disposed of between 2017 and 2029 and that is just the baby boomers and . . . just the middle
Joining The NYBB Group as an Independent Affiliate will provide you with a great opportunity to establish, operate and grow your own M&A advisory office. By leveraging our identity, proven track record of successful business sales, training programs, and in-house technical resources you will be well-positioned to earn lucrative fees on the sales and acquisitions of privately held businesses.
Additionally, NYBB provides Associates the opportunity to earn significant fees on commercial properties that are sold along with a business, through our sister company, NYBB Commercial Real Estate.
The market for selling businesses is improving and is expected to dramatically heat up as baby boomers continue to retire over the next 10-20 years. New York’s economy, one of the richest in the nation, continues to attract buyers of every type from other areas of the U.S. and abroad, making profitable well managed New York businesses a valuable commodity.
Helping people sell their businesses and working with business owners to expand their companies through Corporate Acquisitions is exciting and lucrative. We are always on the lookout for promising candidates who want to enter the field and open their own M&A advisory office. We are especially interested in talented individuals for our Lower Mid-Market M&A Group.
WHO ARE WE LOOKING FOR?
There is no specific background or educational achievement that ensures success in M&A Advisory. In general, persons who have an entrepreneurial nature, have sales experience, have owned their own business, or come from families who have owned their own businesses are good candidates. Generally, a strong desire to succeed financially, a willingness to learn, and some direct sales experience are the primary traits we look for in applicants
All candidates must demonstrate that they have the financial capacity to fund the opening of an Independent M&A Advisory office, which would include monthly affiliate fees paid to NYBB, funds to finance an aggressive ongoing Marketing Action Plan, and the ability to self-fund personal expenses/income during the startup period (generally 6 to 9 Months).
As an Independent Affiliate, you will have complete freedom to direct your own full-time work schedule; however certain productivity goals will be set in order to maximize the effectiveness of each Affiliate. We are particularly interested in adding talented individuals who have sales or sales management experience in a variety of industries, such as finance, manufacturing, distribution, information technology, insurance brokerage, and any type of business service.
INITIAL IN-HOUSE TRAINING
Initial training includes, but is not limited to:
FIELD TRAINING (MENTORING PROGRAM)
Following the initial in-house training, usually about 2-3 days, the associate is assigned to a Managing partner, who acts as their “mentor” and provides hands-on experience in dealing with the entire business buy/sell process. The mentor will assist the new associate in developing goals and implementing a marketing program tailored to the new associate’s experience and marketing strengths.
To ensure the success of the new associate, the mentor will monitor the new associate’s activities for a period of up to 6 months, participating in joint interviews with sellers and buyers, providing assistance in the proper completion of forms and contracts, and providing advice regarding negotiations and techniques for completing successful transactions.
At NYBB, we require all associates to continue their training by taking courses offered by the Alliance of Mergers and Acquisitions Advisors (AMAA), M&A Source, or the International Business Brokers Association (IBBA). We believe that education is not a goal, but rather an ongoing requirement that is necessary to keep NYBB on the leading edge of the ever-changing and dynamic industry of business sales and acquisitions. Additionally, all associates are required to obtain a New York State Real Estate License.
YOUR NEXT STEP
For a confidential interview please send your resume by mail, fax, or e-mail to:
The NYBB Group
Attn: Anthony Citrolo
25 Melville Park Road, Suite 216
Melville, NY 11747