Hugo’s Million Dollar Listing on Day One as a Business Broker
Hugo’s Million Dollar Listing on Day One as a Business Broker
Landing a $1 million + listing on your first day as a business broker is rare. Selling it within three days? Even rarer.
It takes a truly exceptional broker to make that happen.
I sat down with Hugo Martin from ABS Business Sales to chat about his impressive 20 year career as a business broker, how he got started and what he thinks it takes to be successful.
Starting Out
At the time, Hugo was employed as a management consultant when the decision was made to diversify into business broking. Hugo and three colleagues were “conscripted” into becoming licensed business brokers.
On the day they were licensed, their employer issued the ultimatum - “Don’t come back to the office until you have a listing to sell.”
Fortunately for Hugo, he immediately bumped into an acquaintance he knew from his hospitality days. “I explained what I was doing and that it was my first day,” continued Hugo.
“I have a friend who’s trying to sell his business, including the freehold. You should give him a call,” his former customer replied.
Hugo did, and that is how he landed his first million dollar listing.
“When I got back to the office, I phoned my colleagues to ‘encourage’ them…and there may have been some not-so-humble bragging involved!”
Tips for Success
Hugo identified two advantages he believes aid his overall performance.
1. Personal Brand
“My background in hospitality taught me the importance of building a brand. As a business broker, it’s still important for recognition in the marketplace. That’s why I always wear a bowtie, I shave my head, and I have my weekly podcast,” Hugo explained.
“People may not know your name, but they ‘know’ you, so that’s a good start,” he continued.
2. Continuous Improvement
“I attend all the training I can,” said Hugo.
“I am a Registered Business Valuer, which is the highest qualification you can have in the business broker world. I try to attend all the relevant events provided by AIBB and REIQ to keep my knowledge current,” remarked Hugo.
“But it’s more than that. I read widely, so I’m aware of what’s happening and how that might affect future transactions,”
“We are communicators and you need to be on top of things to stay in the conversation and sometimes guide it when necessary.”
Proudest Moments
“I’ve been doing this for such a long time. There are so many, to be honest,”
“But I think the most important thing is that business brokers have the capacity and the ability to make a profound difference in people’s lives. Fundamentally, we are the facilitators who convert an asset into cash. We help people realise their dreams… and mitigate their nightmares in some instances” he continued.
“So I suppose I’m just proud to be a business broker. The opportunity to make a difference in people’s lives is one of the reasons why I get out of bed in the morning,” stated Hugo.
Effective Strategies
Hugo believes that the most effective strategy in the business broker’s tool kit is the ability to fully understand the motivation of both the buyer and the seller.
He points out that sometimes it is not obvious, and the broker may need to build a level of trust and empathy to achieve that understanding.
“Someone will come into our office and say, ‘I want to sell my business, and $450,000 is the minimum I’ll accept’,”
“Without more, negotiations will be difficult. The reasons for selling could be low profitability, a new competitor, divorce, or a dispute with the landlord or franchisor. There are many more possibilities. And the $450,000? That’s what’s owed to the bank. Nothing to do with reality.”
“And then there is the buyer’s motivation. It might be a dream, an opportunity to expand an existing business, wanting to leave a J.O.B., or ‘buying a business for my wife.’ Again, there are many reasons,”
“Knowing the motivations makes the broker far more effective in a successful transaction.”
Keep Learning
Hugo’s advice to all aspiring top performers is to keep learning.
“We are selling knowledge. Technical knowledge, market knowledge, and knowledge of what makes people tick. Keeping up to date gives you a degree of power, and you become an influencer,” he explained.
“Everyone faces major challenges. Our entire office went metres under in the 2011 flood, and COVID was another one. But, you adapt and find a way forward,” he added.
“Professionalisation, social media, and AI can all be seen as challenges or opportunities. Again, you adapt and move forward.”
After 20 years in the industry, Hugo is as keen as ever to keep helping business owners exit their businesses and offering opportunities to buyers.
“My only regret is that I didn’t start doing it 10 years earlier.”
Tags: selling exit strategy tips small broker
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