Strategic Project

Certified Business Broker (CBB) Strategic Project

The Certified Business Broker (CBB) Program requires participants to complete a Strategic Business Brokerage Plan in order to graduate from the program.  This plan is worth 100 points and accounts for 50% of the total grade within the program.  Non-submission of this strategic plan will result in automatic failure within the program.

Once you have completed this project, please complete our Examination Date Scheduling Form at least 2 weeks before the scheduled exam date. Your completed project must be received at least 2 weeks before the exam date. For example, to take the October 10th exam date, this project must be received (as well as a request to take the exam) no later than September 26th.

Strategic Project

Our strategic project involves a case study of a small business that is typical of the type that you may be called upon to value and list for sale.  Please study the information presented and:

      1. Determine an appropriate listing price, with notes indicating how it was set and why it is appropriate.
      2. Answer Dan’s Question of: Did he pay too much for the Business?
      3. Write a confidential profile of the company for marketing purposes.  Make assumptions for any details not presented. 

Case Study: Buffalo Wing Company, LLC

Dan Manning, the owner of Buffalo Wing Company, approaches you to help him sell his sports bar.  He has owned the business for just over one year, and it is more work than he imagined it would be when he bought it.


Founded in 1985 by Joe Proman, a former college and pro quarterback, the business was originally called “Buffalo Joe’s Wings and Things”.  Located in the small college town where Joe first came to be known as a star, the restaurant has remained a popular place for young and old to watch sports on large screen TV’s, play games, and eat and drink.  Joe sold the business to Dan at the end of last year (2009).  The transaction details follow:

      • Purchase Price $250,000 with half down and the balance financed by Joe for 5 years at 8% compound interest.
      • The property is leased for $2,500 per month in a gross lease.
      • The business had sales of $500,000 and Joe’s salary was $75,000.
      • Historically 60% of the revenues occurred in the second half of the year.  Insurance is paid in January for the entire year.
      • The furniture, fixtures and equipment were valued at $100,000.
      • The Goodwill value was $150,000.

Dan renamed the company after he bought it and gave it a more upscale look.  He spent $50,000 on the new decor including new signage and TV’s.

Sales and cash flow are not what he wanted in spite of the changes, and Dan is spending 60 to 70 hours a week in the restaurant.  He is tired, wants to sell and thinks the business should bring the $300,000 that he has in it.  He also asks you if he paid too much for the business.