Q2 2018 Quarterly Report

brokers office desk setup
Company News|5–6 MIN READ

Q2 2018 Quarterly Report

by Clint Fiore

Once again it’s time for a quarterly update on our company.


Q2 2018 (April – June) had three major themes:

  • Holy Cow we sold a bunch of businesses in Q1 and we need to get some more in the door! This was a big quarter for engaging with new companies. Pricing, packaging, and putting them on the market. The team rallied and we’ve increased our company inventory from only 4 on the market in early April to an impressive 10 on the market today, with an additional 4 being packaged for launches later this quarter, so that’s 14 engaged companies looking for Buyers as of late July! We’ve never had more opportunities to look at, so we hope you’ll swing by our Marketplace if you want to take a look at them. Q2 Definitely had more of an emphasis on engagements than closings.
  • Don’t screw up the bookkeeping company! As we mentioned in our Q1 report, we did our first 100% acquisition of a company when we bought Number Crunchers Bookkeeping in San Antonio on March 26, 2018. This was exciting but also a little scary. The main goals of our first quarter of ownership were simply to not lose any employees and not lose any clients. We’re happy to report we succeeded at both and have all the employees intact, happy, and successfully transitioned to new leadership, and have kept all clients and even added 8 more! Hats off to Jane and Dusty from our Kerrville HQ team who went down to our new San Antonio office many dozens of times the last few months and insured our amazing bookkeepers had everything they needed to continue to succeed and thrive. We could not have done this without them. If you excellent outsourced Quickbooks bookkeeping, please give Number Crunchers a call at 210-492-0100 and they’ll get you taken care of!
  • New Orleans Trip! We made a major investment as a team this year taking six team members (Lara, Clint, Dusty, Brent, Brad, and Jonathan) to the International Business Brokers Association annual conference and attending dozens of keynotes, workshops, and classes together. Clint was a featured speaker again this year and taught on technology. Our two Producers Clint and Lara also stayed an additional conference for the Mergers and Acquisitions Source group, of which they’re both members, which focuses on larger deals and working with Private Equity. We spend tons of time, money, and energy getting the best education in the industry so it can benefit our clients with us being as competent and up-to-date on our learning as possible.


Now let’s jump into some nerdy details! 


Financial Results:

We closed 2 business sales this quarter: Aqua Chill of San Antonio, and Pathmark Traffic Products of San Marcos (follow links for Press Releases on both). This wasn’t a record number of closings for us in a quarter like Q1, but with our deals getting larger, our revenues were about the same as Q1’s, near $250,000.

Here’s our closings count per quarter since we started to put that in perspective:

Our total transaction volume was $2,444,000 in Q2, putting us at almost $15,000,000  in total transactions since we launched in Q3 2015.

Here’s a look at our cumulative transaction volume over time:


Total Revenue wise we brought in $249,617 this quarter, which is just about on pace to double our 2017 performance (in fact, as of this writing, we surpassed 2017’s revenue in early July). Here’s a look at our quarterly revenue collected over time since we started the company:


Here’s a Pie Chart showing Q2’s revenue stream mix. As you can see brokerage fees continued to be our top income stream, but bookkeeping is starting to be a bigger part of the mix thanks to our new bookkeeping division.



Our Three Core Key Performance Indicators (KPI’s)

(The Three Measurements We Always Seek to be Best at in Our Industry)

All-Time Historical Percentage of Asking Price Received at closing on our conforming deals stayed steady at 99.37%. These are our bread-and-butter deals where the owner is making at least 100K and we’re able to price them based on earnings. We’re proud of this record and can tell owners of good, profitable companies that we can pretty confidently get them the number we say we can.

Success Rate which we consider how many companies we successfully sell to new owners versus how many conforming deals we lose for any reason (contract expiration without selling, deal falling apart and not coming back, company closing/liquidating etc). We believe we are the only brokerage to share this number publicly. With 2 winning closings and zero losses in Q2, our record is now 20 wins and 1 loss all time, so we are still at a 95%+ success rate. Maybe we should start an NFL team?

Selling Speed. Our 1 conforming deal that closed this quarter was a blazing fast 51 days between first putting it on the market to closed. This was faster than normal and admittedly a little lucky since it was a Franchise whose Franchisor decided to buy it before we could show it to any other Buyers. This speedy deal brought our lifetime average down from 203 to 194 days. (conforming deals, time from on the market to closing day) This will probably bump back up later, but for now – it’s cool to be under 200 days on average.


Other Interesting Stats

Our VIP e-mail subscriber count increased this quarter from 1032 to 1242. This is our captive list of profiled buyers and referral sources, which is where about half of our buyers come from. We continue to enjoy an incredible 33.2% open rate on our VIP blast e-mail (Industry normal is 12%) by not over-emailing and sending quality deals out first to the VIP’s, then to the marketplaces.

Q2 2018 bookkeeping revenue held steady and was slightly ahead of the same period last year – which was a very important data point we were keeping our eye on to make sure we got off to a solid start there.

As a company, we worked like crazy this month communicating with our clients – sending out 1253 unique e-mails, having 1,449 phone conversations, and6 client meetings in Q2. All substantially higher than Q1.



No team members were lost or added in Q2, although we did have a bookkeeper move to a new city whom is now working remotely. We welcomed a new baby into our company family this quarter with the birth of beautiful baby girl by our wonderful Connie who works as a full-time bookkeeper with us. She even timed it perfectly waiting to have the baby in May, after the Tax season rush, now that’s dedication!

Total Team Members: 12

  • Producers: 2
  • Financial Analyst/Appraiser: 1
  • Executive Administrator: 1
  • HQ Operations: 1
  • Inside Sales: 1
  • Bookkeepers: 4
  • Independent Affiliates: 2


Looking Ahead

Q3 will be all about matching Business Buyers with these great deals we just put on the market. But we also have some big events coming up!

August 3-4th we’ll be exhibiting at the Kerrville Area Chamber of Commerce Business Expo

October 23rd we will have our 2nd annual Hill Country Pitch Day (A Shark-Tank-Like event we’re hosting) and we’re presently looking for teams that want to pitch their business ideas to a room full of millionaires. Please follow the link for details and an application.



End of Report

This is the 2nd quarter we’ve done this and hope you find it useful and our transparency refreshing for a small private company. If you have any questions about it or have anything you’d like to see included on the next report, feel free to e-mail your suggestions to [email protected]

Published August 14, 2018

Topics: Company News

Share this Post