Today we’d like to introduce you to Jeffrey Jones.
So, before we jump into specific questions about the business, why don’t you give us some details about you and your story.
After obtaining my degree in business administration from the University of Mankato, my first real job was in sales with Dixie Products, owned by American Can Company. They moved me to Wisconsin and then to Florida, and finally to Houston in 1969. Looking for a better opportunity, I joined Monarch Foods as a Sales Manager, then changed to ARA Services selling food service management services. After being a corporate nomad sales person for 12 years I decided to get off of the corporate ladder and get into my own business. I joined a commercial real estate firm for two years and sold a couple of businesses by accident. Deciding that I liked selling businesses more than just real estate, I started my first brokerage firm known as Restaurant & Club Realty. I sold this firm to a small public company known as Triple Check Accounting Services and worked for them for about 2 years. During that time, I obtained my Master’s Degree from Pepperdine University. Not enjoying the corporate environment, I left to open up my own business brokerage firm, then known as Certified Business Brokers. I also started a business appraisal firm known as Certified Appraisers, Inc. 25 years later I sold the brokerage company along with its 22 agents to Frank & Roseann Stabler who still own the firm today. I then launched Advanced Business Brokers, Inc. and now have a support staff of five people. We handle the sale of small to midsize businesses ranging from restaurants to manufacturing companies.
Great, so let’s dig a little deeper into the story – has it been an easy path overall and if not, what were the challenges you’ve had to overcome?
Being in the brokerage business where income is commission based, one of the biggest struggles is cash flow. Fixed expenses such as rent, employees, utilities, equipment leases, and research databases have to be paid, so properly managing commission income which comes inconsistently with fixed overhead is a real challenge.
Alright – so let’s talk business. Tell us about Advanced Business Brokers, Inc. – what should we know?
I enjoy helping entrepreneurs buy and sell small to midsize businesses. All business owners will sooner or later decide to sell their business due to retirement, health related issues, or the opportunity to change careers. Helping these owners determine the value of their business and then searching for qualified buyers in a confidential environment takes a lot of time and effort. It generally takes 4 to 8 months to sell a business. Each month we get over 200 inquiries from buyer prospects who are looking for a profitable business to buy. This is a matter of matching up their skill set and financial ability with the right business. Our job is to find these people businesses to buy, help them arrange financing, and assist in dealing with all the third parties wherein any one of them can kill a deal, such as lenders, landlords, accountants, attorneys, and/or franchisors. Properly valuing businesses is a key element of our business. Being a designated business appraiser is a big help to our clients. Knowing the resources for financing small to midsize businesses is a critical component of putting deals together. Being able to deal with landlords, accountants, attorneys and others who are not anxious for circumstances to change can be a real challenge and takes a lot of patience.
Is there a characteristic or quality that you feel is essential to success?
Having patience and knowledge of the process of buying and selling small to midsize businesses is key to being in business brokerage. The process entails having knowledge of accounting issues, legal issues, and understanding of what makes these businesses tick, so that I can properly value them and put deals together.
Pricing:
- Brokerage fees for selling businesses range from 9% to 15% depending on the size and scope of the businesses being sold.
- Business appraisal fees can range from $4,000 to $30,000 again depending on the size, scope of the business and the reason for the appraisal.
Contact Info:
- Address: 10500 Northwest Frwy., Suite 200
- Website: www.advancedbb.com & certifiedappraisers.com
- Phone: 713-401-9110
- Email: jdj@advancedbb.com
- Instagram: Mr. Jeffrey D. Jones, ASA, CBA, CBI
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