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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.
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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.
4
ProspectingMethods
ColdCanvassing
ColdCalling
Drop Notes
Direct Mail
Networking
E-Mail Blast
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Overcoming Seller Objections
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
Overcoming Seller Objections
AS WITH MANY THINGS INBUSINESS BROKERAGE
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But when you find one, beprepared to
Overcoming Seller Objections
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.
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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.
Overcoming Seller Objections
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
Overcoming Seller Objections
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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:
Overcoming Seller Objections
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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
Overcoming Seller Objections
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WHO ARE THEYHIRING?
Overcoming Seller Objections
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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OVERCOMING SELLER OBJECTIONS
If you establishcredibility and trust, asan expert in your field,the Client will be morewilling to accept yourinput and change hispreconceived position.
Sell Yourself:
Overcoming Seller Objections
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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OVERCOMING SELLER OBJECTIONS
Overcoming Seller Objections
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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OVERCOMING SELLER OBJECTIONS
Overcoming Seller Objections
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
Overcoming Seller Objections
The Seller is going to seehow you handlenegotiations with him/her.
They will assumethat you willnegotiate thesame for them.
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OVERCOMING SELLER OBJECTIONS
PersonalReasons Listing Issues Fee-Related
Issues
ExperienceIssues
JudgmentIssues
FinancialIssues
Buyer Issues PriceRelated
TermsRelated
Types of Seller objections:
Overcoming Seller Objections
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SELLER OBJECTIONSLet’s go through each type of Seller objection, as presented in:
Overcoming Seller Objections
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OVERCOMING SELLER OBJECTIONSPersonal Reasons
Overcoming Seller Objections
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OVERCOMING SELLER OBJECTIONSListing Objections
Overcoming Seller Objections
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OVERCOMING SELLER OBJECTIONSFee Objections
Experience Objection
Judgment Objection
Overcoming Seller Objections
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OVERCOMING SELLER OBJECTIONS
Buyer Objections
Financial Objections
Overcoming Seller Objections
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OVERCOMING SELLER OBJECTIONSPrice Objections
Overcoming Seller Objections
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OVERCOMING SELLER OBJECTIONSTerms Objections
Overcoming Seller Objections
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RESPONDING TO SELLER OBJECTIONSFor each Seller objection, there is at least oneresponse. Some have several “fallback” responses;“rebuttals.”
Overcoming Seller Objections
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EXAMPLE RESPONSE - 1
Overcoming Seller Objections
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EXAMPLE RESPONSE - 1
Overcoming Seller Objections
Always the“Fall-Back”response
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EXAMPLE RESPONSE - 2
Overcoming Seller Objections
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EXAMPLE RESPONSE - 3
Overcoming Seller Objections
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EXAMPLE RESPONSE - 4
Overcoming Seller Objections
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EXAMPLE RESPONSE - 5
Overcoming Seller Objections
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EXAMPLE RESPONSE - 5
Overcoming Seller Objections
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EXAMPLE RESPONSE - 6
Overcoming Seller Objections
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EXAMPLE RESPONSE - 7
Overcoming Seller Objections
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EXAMPLE RESPONSE - 7
Overcoming Seller Objections
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EXAMPLE RESPONSE - 7
Overcoming Seller Objections
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COMMIT THIS TOMEMORY, AND
YOUR WILL LIST AHIGHER % OF THEBUSINESSES YOU
TALK TO ANDMAKE A LOT
MORE
Overcoming Seller Objections
DOCUMENTS AVAILABLEWITH THIS WORKSHOP
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WORKSHOP DOCUMENTS
Overcoming Seller Objections
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ADDITIONAL DOCUMENTS
Page1 of 3
In MSExcelFormat
Overcoming Seller Objections
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ADDITIONAL DOCUMENTS
Page2 of 3
Overcoming Seller Objections
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ADDITIONAL DOCUMENTS
Page3 of 3
Overcoming Seller Objections
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ADDITIONAL DOCUMENTS
A “work inprogress” for the
last 12 years.
Overcoming Seller Objections
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
OVERCOMING SELLER OBJECTIONS
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
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Len Krick, MBA
Overcoming Seller Objections