how to engage new and existing clients to boost your...

Webinar Training Series

HOW TO ENGAGE NEW AND EXISTING CLIENTS TO BOOST YOUR LOAN PORTFOLIO BY MILLIONS

MARCH 3, 2016

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Presented by:Michael CarterCEOBizEquityMike Carter is the CEO of BizEquity and the inventor of the market-leading online valuation service that is helping the small business economy. Mike has been called one of the top 100 Financial Technology leaders globally by Hot Topics Media in London, and BizEquity was recently recognized as one of the top 360 companies in the United States by Entrepreneur Media. Prior to founding BizEquity, Mike was Managing Director of The Musser Group where he worked with legendary investor Warren V. ‘Pete’ Musser to invest in small businesses. Mike was one of the youngest executive officers ever of a billion-dollar public traded Internet Professional Services Company; founded the first dashboard software company called Dashboard Systems; and was one of the first to invent the ‘virtual data warehousing’ technology used in most Big Data applications today. He began his career at Cambridge Technology Partners in management consulting.


Scott GabehartVP & Chief Valuation OfficerBizEquityScott Gabehart is the Chief Valuation Officer of BizEquity, and a Certified Business Appraiser through the Institute of Business Appraisers at his firm, Gabehart Valuation Services. He has evaluated, appraised and sold over 3,000 businesses since 1992. Specializing in SBA business appraisals on behalf of many lenders across the United States, his experience includes work in areas such as bankruptcy, estate and gift taxation, ESOP formation and administration, matrimonial dissolution, partnership disputes and transaction/strategic planning. He is the author of the seminal work in the market, The Business Valuation Book.


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Download the powerpoint and reading materials in your handouts section.



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Webinar Reading Materials

• Powerpoint presentation by Michael Carter and Scott Gabehart

• BizEquity, Lenders and Small Business OwnersBy Scott Gabehart, Chief Valuation Officer and Certified Business Appraiser

• Webinar TakeawaysPoll QuestionsQ&A Short Bios for Mike Carter and Scott Gabehart



Proven New-Business

Door Opener for Banks:Create a Steady Flow of

Qualified Leads and Millions of

Dollars in New Loans

The Market Environment for Bankers

Competition for business clients increasing among the 5,000+ banks

Online Lending & P2P Lending is growing rapidly & taking market

share from banks

But, Banks have a unique power of building relationships which online

players don’t

So what’s with all the buzz?

Inside the mind of the business owner

• My business is my biggest asset

• Prime source to fund my retirement

• Knowing my business value is important

Business owners who don’t know

the value of their own company

and thus their true net worth.

Meet Banker Office

Before BizEquity Now & the Future

• Resource Intensive: Accountant for 4 weeks

• Slow & Expensive: Price around $8,000

• Not Dynamic: 1-2 data sources & Episodic

• Better: Complete the valuation by yourself and get access to a

29 page valuation report

• Fast & Cheaper: Real time & inexpensive for less than $500

• Dynamic: More than 50 data sources & real time updates

The Huge Opportunity

What if there were a way to help your business client understand the value

of their most important asset

BUSINESS VALUATION is the heart of

investment and RISK MANAGEMENT.

Without it, you are BLIND.

Warren E. BuffetChairman

Berkshire Hathaway Inc.

Over 110 Distributors & Partners

Banking

Best customers for banks are businesses. With everything going digital its difficult to get business

owners into the branch & engage them for new products to create new, cross-selling & up selling

opportunity.

“BizEquity is a true differentiator for us and one of the best marketing solutions I have ever

seen to help our bankers have more conversations and generate additional mind and market

share with the business owner segment.”

Perc Moser,

COO, Metro Bank

1.

RM by Geo Location or Account List or Search

Criteria determines prospect to engage

RM Calls or sends an email to the prospect

with link to BizEquity service describing its

features and benefit

Prospect clicks on the link or goes to White

Labeled Portal to complete 7 steps with

atleast 1 year of financials

2. 3.

4.

Prospect is instructed on Step 8 that a

“Relationship Manager will be in contact with

them to give them there free Business

Performance & Valuation Report”

5. 6.

RM schedules a meeting with the prospect or

client and hand delivers the report and walks

them through it

Bank has financials on the prospect, made physical

contact to build a relationship, delivered tremendous

value to them and enhanced engagement by giving

them invaluable knowledge for free

Use Case 1: Prospect Engagement (Report Driven)

1.

RM logs into their account on BizEquityRM goes to the pre-valued search feature and

performs market intelligence search to determine

best prospects to call on

Search feature highlights the potential value

of prospects , RM contacts the prospect

2. 3.

4.

RM shares with them that they can deliver to

them a free business performance and

valuation report

5. 6.

Prospect meets with RM and is taken through

how to use the serviceRM now has a ‘briefcase’ of accounts they can refer

to at anytime

Use Case 2: Prospect Intelligence (Dashboard Centric)

1.

RM creates a list of existing clients RM emails the clients with a smart link to the new

service Client completed the 7 step online process

2. 3.

4.

Client is informed on Step 8 that a

“Relationship Manager will be in contact with

them to give them there free Business

Performance & Valuation Report”

5. 6.

RM gets an opportunity to meet a client RM suggests new products the client could leverage

based on the report & new interaction

Use Case 3: Up Selling & Cross Selling

Credit Scoring & Current Income are lagging indicators and should not be the basis of commercial lending. Business Valuation Score

would help with a true measure of risk for lenders by adding a 3rd dimension of risk vs the current two-dimensional risk model.

Use Case 4: Risk Management

Data Record on Every Business

Selling Loans Can Enhance ROI

Lenders who hold business loans guaranteed by the Small

Business Administration’s (SBA) 7(a) Guaranty Loan

Program may sell the guaranteed portions of those loans in

the secondary market.

To administer its secondary market program, SBA has

appointed Colson Services Corp. to act as its Fiscal and

Transfer Agent (FTA).

During 2014, around 80% of lenders sold SBA loans into the

secondary market and 60% of these lenders sell all of their

loans in this manner. Overall, around 70% of all SBA loans

were sold to secondary investors.

Loan Sale Terminology

1. Selling at Par 2. Selling at a Premium

Selling a loan at par is selling 100% of the

outstanding principal balance.

This method of sale maximizes service income or

future earnings.

Selling at a premium is selling the outstanding

guaranty balance for more than 100% of its value.

This method maximizes immediate income.

Direct and Indirect Benefits of Using BizEquity to Obtain a New

Customer Who Borrows $1 Million

Example: Using BizEquity to find a new customer allows

the lender to source a new $1 million SBA loan.

Obtaining this single new customer can create the

following direct and indirect benefits.

Direct and Indirect Benefits of Using BizEquity to Obtain a New

Customer Who Borrows $1 Million

Direct Financial Benefits Other Indirect Benefits

Sale of $900K guaranteed portion

creates immediate income of

$90,000 (or more if sold at

premium)

PLUS 1% of guaranteed portion or

$9,000 in fee income to continue

servicing the loan payments.

Seller retains $100,000 loan

balance but only $10,000 “at risk”

(only $1,000 at risk after year one).

Once loan is sold, lender has

$900,000 in capital to fund new,

incremental loans (the “loan

multiplier” kicks in).

The lender has the ability to

“cross-sell” a variety of other

services to this new client

including wealth management,

cash management, personal and

mortgage loans, etc.

Depending on the loan covenants,

the new customer may be required

to use the lender as their primary

bank and any transferred funds

can be utilized to make other

incremental loans.

By offering a free business

valuation, the customer is

receiving a valuable service at no

cost and the lender is given the

opportunity to become an

invaluable advisor

Scott Gabehart, CBA, CVA, BCA, MBAChief Valuation Officer, BizEquity LLC

B.A. in German and Economics, MBA in International Finance,

Ph.D coursework in Economics (2.5 years)

Corporate Audit Experience with Schering-Plough and Motorola (2

years) with Internal Audit Training with Arthur Andersen/Peat

Marwick Mitchell

Full-Time Faculty of Economics at Chandler-Gilbert Community

College (4 years)

Business Broker and Middle Market Specialist with VR M&A (7

years) and Licensed Securities Broker (Inactive Series 7 and 63)

and Licensed Real Estate Agent

Author of Upstart Guide to Buying, Valuing and Selling Your

Business

Certified Business Appraiser for Gabehart Valuation Services (15

years) and Certified Valuation Analyst (CVA) via NACVA and

Business Certified Appraiser (BCA) via ISBA. Chairman of the SBA

Valuation Issues Committee of the ISBA

Faculty of top MBA Program teaching “Valuation, Sale &

Acquisition of the Private Firm”

Author of “The Business Valuation Book” and “Upstart Guide to

Buying, Valuing and Selling Your Business”

Current Specialization and Focus on SBA Change of Ownership

Business Appraisals

Working with valuation professionals, lenders and SBA Personnel

to Improve Business Valuation Component of SOP50-10(5) Series

Interviewed by numerous business publications including

BusinessWeek, Forbes, Wall Street Journal, Business Journal(s),

etc.

Business Valuation Considerations for “Change of Ownership

Loans” within the SBA Realm

1. The business valuation process related to SBA-

guaranteed acquisition or “change of ownership” loans is

unique among the many different types of appraisals

performed by professionals today.

2.Although the full force of “generally accepted valuation

principles and procedures” still apply, the purpose of the

business valuation and the valuation environment are as

unique as valuation realms such as “divorce” or “bankruptcy”

or “ESOP’s”, etc.

3. There is only limited guidance available in the “rules

and regulations” which surround the SBA loan process, i.e.

the Code of Federal Regulations and the SOP50-10

resources do not fully clarify the valuation requirements,

perspectives or even mention methodologies which are

normally assumed to exist when performing such

assignments.

4.Examples of the lack of clear guidance or criteria

include the report terminology, pertinent valuation

approaches and methods, standard of value, report type,

etc.

Who is Qualified to Perform SBA Change of Ownership Appraisals?

There are 5 main organizations which train and credential business appraisers in the USA, any of whom are

qualified in accordance with SOP50-10(5)(H) as of October 2015.

American Society of

Appraisers

Institute of Business

Appraisers

American Institute of

Certified Public

Accountant

National Association of

Certified Valuation

Analysts

International Society of

Business Appraisers

Accredited Senior Appraiser

(ASA)

Certified Business Appraiser

(CBA)

Accredited in Business

Valuation (ABV)

Certified Valuation Analyst

(CVA),

Accredited Valuation Analyst

(AVA)

Business Certified Appraiser

(BCA)

BizEquity Appraisal Services for Change of

Ownership Loans

BizEquity provides timely and competitive business appraisal

services for SBA loan purposes.

All appraisals are prepared in full conformity with SOP50-10(5)H as

well as the SBA’s known preferences.

Most appraisals can be done for $2,500 with a 10 day turnaround

time.

Scott Gabehart, CBA, CVA, BCA, MBAChief Valuation Officer, BizEquity LLC

+1 (602) 692-0887

[email protected]

mailto:[email protected]

THANK YOUFor your time, input and consideration.

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