overcoming seller objections

OVERCOMINGSELLER

OBJECTIONS:A CRITICAL SKILL REQUIRED

TO LIST BUSINESSESLen Krick, MBA

Lifetime Certified BusinessIntermediary

Lifetime Merger & Acquisition MasterIntermediary

Fellow of the IBBARecipient of the Tom West Award

This workshop was writtenby Len Krick, based onhis personal experienceworking as a successfulbusiness broker for over20 years. Some materialwas contributed byfellow members of theIBBA.

IBBA Conference attendeeshave permission to use thecontents of this workshop , andthe exhibits provided by Mr. Krick,but may not claim authorship.

IBBAConference -October 2021

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WHAT IS YOUR “INVENTORY”?

Are listingsyour inventory ? Yourtime

is your inventory. Once it isgone, you can’t get it back.

So, spend it wisely

and don’twaste it!

Overcoming Seller Objections

BUSINESS BROKERPROSPECTING METHODS

By Order of Effectiveness and Difficulty*:

1. Cold Canvassing2. Cold Calling3. Drop Notes4. Direct Mail5. Networking6. E-Mail Blast7. Seller Seminars* For most business brokers.

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ProspectingMethods

ColdCanvassing

ColdCalling

Drop Notes

Direct Mail

Networking

E-Mail Blast



PROSPECTING TO LISTINGCONVERSION RATES


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ProspectingMethod

Estimated AverageSuccess Rate

Estimated AverageFailure Rate

Cold Canvassing 6% 94%Cold Calling 5% 95%Direct mail LetterWith Follow-Up

2% 98%

Drop Note 2.5% 97.5%Email Blast Less than 1% More then 99%

Approximate success rate in gettinga listing meeting for each method


AS WITH MANY THINGS INBUSINESS BROKERAGE


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But when you find one, beprepared to


Don’t let agood one slipthrough your

fingers!

YOUR ABILITY TO CONVERT ALISTING MEETING TO

A LISTING IS CRUCIALWe spend a great deal oftime and moneygenerating listingmeetings.

However, theconversion rate of alisting meeting to alisting is one of themost crucial skillsthat determines thesuccess of abusiness broker.


7Overcoming Seller Objections

OVERCOMING SELLER OBJECTIONS


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A critical part ofconverting a listingmeeting to a listing isyour ability to overcomeobjections typicallyraised by listingprospects. Over a ten-year period, I haveidentified 44 of the mostcommon objections (aka“Impediments toListing”) that we allencounter.

A copy of this is availableon the IBBA conferencewebsite.


STEPS TOOVERCOMING

SELLER OBJECTIONS


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1.Prepare:Anticipateobjections

2. Probe:Identify

the sourceof

objections

3.Position:Educate

theseller/buy

er

4.Promote:

Sellyourself

5.Practice:Practice,Practice



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BASIS OF SELLER OBJECTIONS

Lack ofunderstandingof the businesssales process

Lack ofknowledgeabout the

market

Lack ofconfidence in

the broker

PriorExperiences orhorror stories

The source of most objections can be categorized as:



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KEY STEPS TO AVOIDINGSELLER OBJECTIONS

Educating the client

Gaining the client’sconfidence and trust in your

ability, experience,professionalism and ethics

Respond with strength andconfidence



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WHO ARE THEYHIRING?


You First Your FirmSecond

A business owner is onlygoing to sell their businessonce, they must hire thebest broker the first time!


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If you establishcredibility and trust, asan expert in your field,the Client will be morewilling to accept yourinput and change hispreconceived position.

Sell Yourself:


Step 1

Pre-sell yourself andyour firm before thefirst meeting. Sendcompany literature(your “New ClientPackage”) to theclient prospect’shome or personalemail address. IBBA

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Sell Yourself:Step 2

Do research before thefirst meeting. Googlethe business and theowner’s name. Checkcompany’s web page.Identify the names,size, and location ofcompetitors. Readabout industry historyand trends.


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Sell Yourself:Step 3

Remember this will be yourfirst impression; your need tomake it a good one. Youmight not get anotherchance.


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YOUR FIRST IMPRESSION


The Seller is going to seehow you handlenegotiations with him/her.

They will assumethat you willnegotiate thesame for them.


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PersonalReasons Listing Issues Fee-Related

Issues

ExperienceIssues

JudgmentIssues

FinancialIssues

Buyer Issues PriceRelated

TermsRelated

Types of Seller objections:



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SELLER OBJECTIONSLet’s go through each type of Seller objection, as presented in:



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OVERCOMING SELLER OBJECTIONSPersonal Reasons



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OVERCOMING SELLER OBJECTIONSListing Objections



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OVERCOMING SELLER OBJECTIONSFee Objections

Experience Objection

Judgment Objection



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Buyer Objections

Financial Objections



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OVERCOMING SELLER OBJECTIONSPrice Objections



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OVERCOMING SELLER OBJECTIONSTerms Objections



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RESPONDING TO SELLER OBJECTIONSFor each Seller objection, there is at least oneresponse. Some have several “fallback” responses;“rebuttals.”



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EXAMPLE RESPONSE - 1



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Always the“Fall-Back”response


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COMMIT THIS TOMEMORY, AND

YOUR WILL LIST AHIGHER % OF THEBUSINESSES YOU

TALK TO ANDMAKE A LOT

MORE


DOCUMENTS AVAILABLEWITH THIS WORKSHOP


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WORKSHOP DOCUMENTS



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ADDITIONAL DOCUMENTS

Page1 of 3

In MSExcelFormat



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Page2 of 3



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Page3 of 3



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A “work inprogress” for the

last 12 years.


LEN KRICK’SCOACHING PROGRAM

Len Krick’s Coaching Program

Len Krick, MBA, CBI, M&AMI - Sunbelt BusinessBrokers

Features:• Custom program, based on business broker’s experience level

• 14 two-hour, one-on-one coaching sessions

• Custom marketing plan developed for business broker’s officeand market; all supporting materials ready to implement

• Access to Len Krick’s ultimate business brokerage referencelibrary of over 800 documents, checklists, templates, CBRexamples, valuation examples, marketing materials, and forty-eight 90-minute webinar PowerPoint PDFs.

• Delivered via Go-To-Webinar

• Covers Main Street, M&A, or both

Price: $5,000

MINIMIZING LISTING TIMEAND


Lifetime Certified Business Intermediary

Merger and Acquisition Master Intermediary

Fellow of the International Business Brokers Association

Recipient of the Tom West Award

Charter and Founding Member of the Nevada BusinessBrokers Association

President and COO

Sunbelt Business Brokers of Las Vegas, Inc.

2300 West Sahara Avenue, Suite 1000

Las Vegas, NV 89102

Cell Phone: 702.496.8865

e-mail: [email protected]

www.SunbeltLV.ComIBBA

Conference -October 2021

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Len Krick, MBA


overcoming seller objections

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