Managing Partner Opportunity

Summary

Liberty Business Advisors (LBA) was founded in 2003 by Matt Sadati as a boutique business advisory and brokerage firm specializing in small to medium sized businesses located within the San Francisco Bay Area. Under Mr. Sadati’s leadership, LBA has successfully represented the sellers of more than 2,000 businesses throughout California with over $1.5 Billion in closed sales to date.

LBA’s corporate headquarters is located in Walnut Creek, California and the company currently has affiliate several brokerage offices in both northern and southern California. Each LBA office operates independently and in accordance with established company policies and procedures and under the direction and leadership of its Managing Partner (MP).

It is LBAs strategic objective to expand the scope of its operations throughout California by engaging highly qualified and seasoned business professionals to partner with us by opening and managing new affiliate offices located in selected market areas within the state. LBA MPs enjoy ownership of their individual offices while benefiting from LBA’s unique cost sharing arrangement, comprehensive agent training programs, and targeted direct marketing initiatives.

Each of our MPs bears the financial responsibility for the leasing, furnishing, and ongoing expenses associated with setting up and operating their individual offices. Prospective MPs are required to have a minimum of $25,000 cash on hand to undertake their office setup plus an initial 3 to 6 months of operating expenses. This capital requirement is similar to the up-front cost of buying a franchise except that LBA requires far less money (comparable franchises sell for $65,000+) and most importantly, all the money goes into the MPs office, and none to LBA. LBA supports its MPs by assisting with the operating costs of their office through our unique revenue sharing program.

LBA’s innovative marketing and sales approach has provided our MPs with the opportunity to successfully provide advisory and brokerage services to a wide variety of small to medium-sized businesses (valuation of $500,000 to $5,000,000) throughout California. Our Managing Partners typically earn from $300,000 to $500,000 per year with our top MPs earning from $650,000 to over $1,000,000 annually.

In order to become successful, a Managing Partner must possess a thorough understanding of how small business functions and be able to provide our business owner clients with sound advice and valuable consultation. An MP must recognize that the quality of the service we provide to our clients is the true measure of our worth and that the compensation we earn is the byproduct of that service. A successful MP must also be able to recruit, manage and motivate his or her team of sales associates. Leadership by example is the key to a successful LBA brokerage office.

1. Managing Partner Requirements

In order for a candidate to meet LBA’s basic requirements for a consideration as a Managing Partner, the candidate should meet some or all of the following criteria:

• Possess first-hand experience either owning and successfully operating a small to medium sized business or in a C suite position in a corporate environment, or
• Document a successful track record managing a sales team of 6 or more sales representatives/agents for either a private company or in a corporate environment, and
• Possess at least bachelor’s degree, preferable in business or finance. An MBA, law degree, or other advanced degree is a major plus.
• Demonstrate exceptional talent, communication skills, leadership ability, and business acumen. The utmost ethical standards are absolutely essential.
• Provide LBA with written references from a minimum of 3 former business associates, managers, or clients.
• Document a minimum of $25,000 cash available for the initial set-up and operating costs of a new office in a location approved by LBA.

Office Requirements

The following are the basic requirements for the opening of a new LBA office:

• Own or lease a minimum of 1200 sf of office space with the layout to include a reception area and front desk, MP office and furniture, 2 office/conference rooms, and open office space to accommodate a minimum of 4 desks for sales and marketing associate’s use.

Note: In larger metropolitan areas LBA may require a larger office. Expensive Class A office space is not necessary as well-located and more modest Class B space is usually preferred. The anticipated rent range for this space should be from $1200/month to $1800/month.

• Each office should be equipped with minimum of 4 desktop computers, an office telephone system with a minimum of 6 telephone sets, broadband internet service with Wi-Fi, a printer/scanner/copy machine and minimum of 4 phone lines.
• Conference room and MP office should have a white board and the common area should be tastefully decorated with a positive graphics theme, plants, and lighting.
• A prominently displayed and illuminated Liberty Business Advisors logo graphic located in the entry area above and behind the receptionist desk.
• Suitable office furniture, desks, plants and graphics displays as needed for each area.

Note: The cost of furniture and equipment (may buy used furniture and lease office equipment) should be in the $10,000-$12,000 range.

2. Office Requirements (Continued)

• An LBA approved operating budget and sufficient capital in reserve to enable the office to operate for minimum of 3 to 6 months ($6000 to $15000).

Note: The MP should also have enough cash in reserve to cover3 to 6 months of MP’s personal expenses.

• MP shall be responsible for keeping the office open from 9:00 am to 5:00 pm Monday through Friday (except for holidays) and to maintain the office in a clean and orderly manner at all times.
• MP shall be responsible for hiring and training of all sales associates and office staff and to conduct weekly office meetings for management oversight and training.
• MP must participate in LBA’s advertising, direct marketing program and company training programs. The proportional costs of LBA company advertising and direct marketing programs shall be paid by MP’s office through the collection by LBA of 20% of the Gross Commission Revenue (GCR) from each closed transaction resulting from those leads generated by LBA and assigned to MP’s office.
• It is strongly recommended that MP be or become a member of the local Chamber of Commerce and at least one social organization such as the Rotary Club, Odd Fellows, Elks Lodge, Lyon’s Club, etc.

LBA to Provide MP

• An 80% split of GCR (after 7% administration fee) from MP’s personal transactions resulting from leads generated by MP personally or by MP’s sales or office staff.

Note: On leads generated by LBA’s direct marketing program and assigned to MP personally the split would be 60% to MP and 40% to LBA (base 20% + 20% for marketing).

• In addition to the commission splits set forth above for MP’s personal transactions, MP will receive 50% of the net revenue generated from MP’s office after paying the sales associates splits and ordinary expenses for the office.
• The right to use the name “Liberty Business Advisors” which is a copy write protected name and is the sole property of LIBERTY BUSINESS ADVISORS, Inc.
• Proactive recruiting and training of new agents as requested by MP to work in MP’s office. Ongoing company sponsored training for MP’s agents on weekly and monthly basis.

3. LBA to Provide MP (Continued)

• LBA shall be the Broker of Record for all transactions with centralized escrow coordination and weekly status reports to MP’s office
• Professionally designed LBA website to include a separate page dedicated to MP’s listings and additional MP provided content.
• A customized CRM software package to initiate, cultivate, follow-up, and monitor sales activity and closings in real time.
• The opportunity to participate in LBA’s proactive direct marketing program that generates warm seller and buyer leads through proactive telephone outreach, postcard mailings, email campaigns, newsletters, search engine optimization, and social media.
• Promotion and advertising of each listing in addition to enabling each agent to advertise on multiple internet sites such as BizBuySell and BizBen.
• Access for MP or MP’s agents to utilize any of LBA’s offices throughout California for client meetings and LBA related business activities during office hours.
• 24/7 basic legal advice and oversight of each transaction via phone or email.
• Legal assistance from outside counsel to mitigate legal disputes with costs to be prorated with each MP or agent in accordance with their commission splits.
• Provide all requisite listing and sales forms and in depth comprehensive training on how to properly utilize them.
• Provide additional forms specifically designed to mitigate potential legal liabilities and increase legal protections for MP and MP’s agents.
• Monthly and quarterly financial accounting and reports for each office to document the income and expenses for that office.
• Should LBA elect to franchise its offices in the future, MP will have the first right of refusal to become the franchisee for MP’s designated market area at no additional cost to MP.

Disclaimer: Please be advised that the income potential from this business opportunity as described herein, while currently being realized by some of our Managing Partners, is not guaranteed. LBA is a commission based business brokerage firm and the income of all our Managing Partners and Sales Associates is determined solely by the commission revenues generated from the closed transactions that they procure.