Farzin Hesari Is The CEO Of LINK Business Brokers, A Franchised Brokerage Brand With Over 120 Brokers In The Australian Market Alone.
Episode Timeline
- 0:00 – Introduction & Overview of LINK Business Brokers
- 0:49 – Locations & International Presence
- 1:18 – Market Share and Business Transactions
- 1:48 – Importance of Relationships and Data in Business Brokerage
- 2:07 – Role of Data and AI in LINK’s Business Model
- 3:23 – Broker usage of data, proprietary software, and data analysis
- 4:13 – Growth strategy, market positioning, and business transactions
- 4:51 – Franchise partnership model & broker support using data and systems
- 6:06 – Training and development for brokers
- 6:31 – Franchise partner roles, collaboration, and rebranding from independents
- 7:12 – Revenue streams for LINK & Franchise Partners
- 7:51 – Challenges in business transactions & market conditions by state
- 8:35 – Improving transaction timelines and efficiency; list-to-sell ratio improvement
- 10:01 – Specialisation in different business sectors
- 10:20 – Broker success, brand power, and the sales process
- 12:24 – Future plans: AI integration & business seller leads
- 13:31 – Wrap up
He explains that LINK Business Brokers focuses on helping businesses enter and exit the market through leveraging market data combined with their proprietary systems and software.
LINK operates in several countries, with seven partner offices in Australia with its 120+ brokers in this market. Farzin details how they currently command over 20% of the business transactions market, handling between 3,500 and 5,000 businesses annually, with a total of $6 billion in business transactions.
Farzin focuses on explaining the important role and use of proprietary data and technology, particularly artificial intelligence. They gather data on transaction types, market conditions, buyer behaviour, and business performance, which is therefore exclusive to their network.
The brokerage model is franchise-based, and they provide extensive training and support to franchise partners and brokers. So much so, that the average business transaction fee according to Farzin, is close to $50,000, and their list-to-sell ratio exceeds 48%, far above the industry average.
In terms of revenue for franchise partners, Farzin details the potential to offer services beyond brokerage, such as business valuations and advisory services for business growth and exit preparation. Their goal is to continue improving their transaction efficiency and expanding through new franchise partners.
In a key stretch goal, Farzin concludes by discussing the company’s future, which will focus on leveraging AI to generate more seller leads and improve efficiency, with aspirations to further increase their list-to-sell conversion rates.
