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Case Study: Trading prospects – interviews with trader and recipient


Buyer and Seller Interviews and actual Prospect Trading data

A number of advisors have asked me to recount a recent trade on the Referral Prospects Training Platform to assist them in understanding the process. So I have done some interviews and brought it to you here in a Q and A style, including the original trade data.

From the Trading advisor’s perspective:

So tell me where did the Prospect come from?

“Well, I was contacted by a former prospect that I had been unable to engage for a business diagnostic and improvement program a few years ago. One of the partners had decided to exit and they wanted a valuation. The partner was exiting for personal reasons and they had no intention of trading it externally.”

Why do you think they came back to you?

”When I first contacted them I had a few coffee shop meetings but just didn’t seem to be able to sign them up”
“They have been on my email list and receiving my eNewsletter and although I had called them a few times I always got a polite responses like, “too busy”, “something is important is happening so call me in a few months when that is over” and so on…”

So what happened next?

“Valuation is not my area and although I could have just referred an accountant, I knew enough about the business to know that this could be a difficult business to value. So I decided to load it as a prospect on the trading platform.”

Do you have any advice for others?

“I didn’t realise that this would actually sell and I probably should have set a higher starting bid” and “I was also happy that I could actually solve the problem for the client and may get more referrals from them, even if I don’t end up working for them directly”


Here is the actual listing off the Referral Prospects Trading Platform

“Valuation required for furnishing design and manufacturer”

Location: East Brisbane, Queensland
Staff Numbers: 4
Industry: Creative / Design
Turnover Range: $500K
Business Structure: Traditional (Account Based)
Business Operated Hours Per Week: 40-49 hours per week
Business Location: Metro
Business Started or Purchased: Started
Business Opening Year: 2008
Has used external advisors: No
Key Business Issues: Soft furnishing manufacturer and furnishing design service business has two shareholders and one is seeking to exit for personal reasons. Stock, plant and equipment valuation as well as a market analysis is required. One owner is an accountant and the other is responsible for sales and marketing.

So how about from the Buyers perspective? [some names have been removed for privacy reasons]

How did you find out about the prospect?

“I noticed a new prospect appear on the platform and lodged a bid because I have done quite a few valuations although I am not an accountant.”
“The auction ended a few hours later [prospect auctions expire in 24hrs] and I received an email saying I had won”

When did you contact the propsect?

“Their contact details came in the email at the end of the auction and I called ….. early the next day to set up an appointment”

What did you say to the prospect when you called?

“Just that I had received their contact details from Business Advisor Network and I wanted to make a time to meet to discuss the valuation”.

Anything else?

“I didn’t really want to say too much before I got in front of them.”

How did the meeting[s] go?

“I needed more information to scope out the job, so I gave them a ring” “It took a few meetings to get them signed but I was engaged [in the same month as the auction ] and I expect to finish soon [about 2 months later]”

Has it been worthwhile work for you?

“Yes, I will have billed about 14-18 hours over the project ….of work I wouldn’t have otherwise had”

Is there any potential for ongoing work?

“Yes, one partner is buying out the other so there is some real potential for ongoing help to the remaining partner” “I also think there is potential for referrals to other similar valuation jobs”

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