A Certified Business Intermediary (CBI) is a trained and experienced business intermediary who possesses the necessary expertise to perform business valuations, confidential marketing, negotiations and the multitude of complex details involved in the sale or purchase of a privately held business. The CBI designation is a professional credential earned by Business Intermediaries who are members of the International Business Brokers Association and have satisfied the work experience and academic requirements in addition to adhering to the ethical standards of the IBBA.
Business brokerage is a specialized field that requires a good knowledge of the finance, legal, and accounting disciplines, as well as a proficiency in marketing, negotiating, and due diligence. Selling a privately held company is often one of the most important financial events in the life of a business owner, who should make sure that the best and most professional representation is retained throughout the process. In most cases, a small business represents a significant component of family wealth and the owner will be keenly interested in maximizing this value when the business is sold to an outside 3rd party or key employee, or transferred through an orderly succession to a family member. The special skill set and expert guidance offered by a CBI will bring peace of mind and security to a process that can be complex and challenging. A CBI professional can help both buyers and sellers navigate the acquisition and sale process in a smooth and methodical fashion and assist in achieving a win-win transaction.
CBI's have three distinct qualifications:
•A higher level of experience, training, and education necessary to handle the marketing, negotiations and complex details involved in the purchase or sale of privately held business.
•The most up-to-date industry data related to valuation, financing, contracts, taxes, legislation and other areas with respect to business transactions.
•Affiliation with hundreds of other intermediaries and professional partners (CPA's, Attorney's, etc) on a local, national, and international basis.
What are the CBI Requirements?
•Experience - A minimum of three years full-time business brokerage experience within the prior ten years, and must be actively involved in the deal-making process, or management of the process.
•Ethics - A thorough understanding and commitment to uphold the Association's high Code of Ethics.
•Education - CBI's must complete a rigorous advanced study curriculum involving a minimum of 68 class hours of business brokerage courses in addition to attending IBBA Conferences for professional development, continuing education, and periodic re-certification
•Examination - Once all requirements are met, CBI's must pass a difficult and comprehensive examination.
Buying or selling a business is one of the most crucial financial transactions in an individual's life. Engaging a Certified Business Intermediary (CBI) will greatly assist both buyers and sellers in optimizing the transaction and navigating the myriad of complex issues related to selling or buying a closely held business. The CBI designation is awarded following rigorous education, testing and demonstrated superior working knowledge of business brokerage skills. This difficult to obtain designation has been awarded to less than 800 recipients internationally. In states where there is no licensure of business brokers, it is even more important that business owners look for the credentials of the individuals and firms being considered to represent them.
About this Author
Michael Fekkes is a Senior Broker at Enlign Business Brokers. Michael is a Certified Business Intermediary CBI®, a member of the International Business Brokers Association IBBA®, as well as a former business owner. Enlign Business Brokers http://www.enlign.com/ is a Professional Services Firm serving the Southeast that is headquartered in Raleigh, NC with regional offices in Nashville, TN and Atlanta, GA. providing business intermediary services ranging from valuation and sale to exit & succession planning strategies.
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