The following is an excerpt from an article we published last year in the IBBA Newsletter. I thought you might be interested in rereading it

 

Client Relationship Management and Business Practice Management

 

Understanding the Unique needs of Business Brokers and M&A Specialists

Customer Relationship Management (CRM) is an important part of any successful business strategy but the role it plays within the business broker community is very different than in the broader product oriented corporate environment. Understanding the differences, the challenges and the opportunities, and then choosing and implementing a proper CRM strategy can improve a firm's long-term success.

What business brokers sell is different. Business brokerage firms provide professional services in the knowledge, skill and judgment of their professionals. They do not market specific manufactured products or simple services. What brokers market to their clients is their professional expertise.

Who is doing the sales is also different. Businesses that manufacture/distribute products employ groups of salespeople to sell the inventory. Business brokers, on the other hand, often own or partially own their firm and are responsible not only for providing the professional services to the clients, but also are directly responsible for business development and sales.

How business brokers sell is different. Product oriented businesses depend on the sales automation thought processes to provide goods and services to customers and they use mass marketing channels to sell even when no personal relationship exists.  Business development for a business broker depends on one-to-one contact with the client or prospects to demonstrate that the broker has the requisite skills and expertise to accomplish and properly manage the brokering process and to establish the trust and credibility necessary to secure the engagement.

The CRM solution for Business Brokers not only needs to maintaining address and contact information with to do lists of activities but it also needs to help manage the Intellectual Capital of the business and help with Business Practice Management.

 

Intellectual Capital - The successful CRM solution for a business brokerage is one that organizes for the broker the entire brokering process and due diligence responsibilities inherent in transactions of buying or selling businesses. The solution should also help management easily understand what is occurring within the organization to ensure the highest professional service to the clients.  "Practice management" insures that your firm's intellectual capital is increased with every transaction effort.

"Practice Management" - Salyn provides the ability to record and track to completion, the complex tasks associated with business transactions ensuring they are accomplished in an orderly and timely fashion. Checklists and task management provide a powerful tool to brokers to manage the whole brokering process. Selling an auto parts manufacturer has different requirements than selling a sandwich shop. And by the same token, selling an industrial parts manufacturer may often have similarities to selling the auto parts firm. If a broker can capture and codify his thought processes on transactions in industries with which he has experience; and share this knowledge with other brokers in the organization, the services provided to the firm's client are improved and the profitability of the brokerage firm is enhanced.

 

The CRM strategy for brokers can be defined as "a system that has the means to aggregate knowledge and expertise about people, industries, companies and transaction requirements, and transform this into the firm's intellectual capital. Practice Management as part of this strategy harnesses and leverages the knowledge and expertise of its associates to provide the best service to its clients."

The SALYN Client Relationship Management Application is designed specifically for Business Brokers and Mergers & Aqcuisition specialists.

 

For more information please contact me or visit our web site.

Sincerely yours,

 

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