April 8, 2018

Selling Your Business – The Top Reasons to Hire An Advisor

By Jeremy Albelda

‘I know the value of my business and I have three buyers knocking on my door each week, I will sell my business on my own (and save the commissions)’ – statements often expressed by business sellers.

“As the old adage goes, ‘you don’t know, what you don’t know’ – this is exactly the reason many business transfers never close, or ultimately end up in court” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based Mergers & Acquisitions Advisory firm, “unfortunately, all too often, business sellers are not familiar at all with all the nuances and challenges of a business sale (while still being excellent and successful business operators).”

Here is a list of the top fifteen reasons why a business owner should hire a professional M&A Advisor:

Professional cash flow recasting with a reconciliation of tax returns vs. financial statements and a compilation of all operational business information in an organized fashion;
Establishing a Fair Market Value by way of an accredited third-party business valuation firm – defining the best price and terms before going to market;
To maximize net receipts, M&A advisors can recommend additional external professional advisors – transaction attorneys, tax lawyers, CPAs, estate planers, etc.;
Advisors prepare a professional investor package with a winning marketing strategy;
Most business buyers start with an M&A Advisor / business brokers in their searches;
A deep advisor’s database of buyers and investors will attract more than one offer;
Confidentiality preservation – pre-qualification of potential buyers without divulging the name/location of the business for sale;
Advisors can initiate contact with likely purchasers without releasing the name of the business – with the knowledge of what/when to show buyers. Sellers do not have to fear adverse effects of a premature sale disclosure to key employees and lenders;
Minimize interference with owner’s ‘running of the business’ as most owners do not have time to sell the business (or the business’ performance will dramatically decline);
To avoid owner’s adversarial positioning in the negotiation process with buyer;
Advisor will coach sellers to answer buyers’ questions and concerns not setting red flags;
Broker depersonalizes negotiations and takes seller out of ‘negotiation front lines’;
Advisors help to evaluate purchase offers and reduce frustration during offering and sales process – most deals die numerous times, good advisors know how to revive them;
Advisors help buyers to obtain bank financing – for cash to be at the closing table!
Compensation is commission based upon a sale – what does a seller have to lose?

In sum, professional M&A advisors and Business Brokers know how to sell businesses. Most often, their objectives – by way of a back-end fee – are completely aligned with the objectives of a business owner in maximizing the value and terms of a transaction.

For that reason, it is very sensible to bring a professional M&A advisor in to develop a transaction as much as a business owner would hire a CPA to perform the tax planning or an attorney to handle legal matters – not doing so will simply translate into a performance decline of the business (aka a lower price) with a sub-par deal at the end.

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About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or info@neumannassociates.com

Client Testimonials

“I'm an attorney. I have represented the buyers and sellers of businesses for 20+ years. Recently I had the pleasure of handling a transaction where Richard Wilder of A. Neumann & Associates was the broker for the seller. Mr. Wilder was of great service to his client. He is very knowledgeable and organized. Thanks to his guidance the transaction proceeded smoothly and closed on time. He is highly recommended.”

Nick Ferrante

“Richard, you came to my office a few years ago and were wonderful in explaining your process and procedures. Our company is probably an anomaly in that we sold the majority to two long time employees and I financed them both. Our company is entering its 45th year and is still thriving. The purpose of the note is to thank you very much for the service that you provide. Thank you again.”

John Foug, Seller

“We had a great experience working with Richard Wilder from Neumann and Associates as the sell-side broker for Blade Runners. He was knowledgeable, professional, and clearly had his client’s best interests at heart. Richard helped keep the process smooth for everyone, and thanks in part to his efforts, we found a fantastic owner to partner with. We'd gladly work with Richard and the Neumann and Associates team again.”

Justin Martin

“Very happy with Richard and the entire process. I was on the buyer side of the transaction.”

Isaac Palmer, Jr.

“If you are looking for a professional and informative company that meets your needs, A Neumann & Associates is the company to go with. Ted Kantor went above and beyond to make our experience as easy as possible. Ted was helpful from the start of our process to the end. He was there every step of the way to guide us and answer all of our questions. He handled all of the in-depth communication and followed up on every detail. We strongly recommend Ted Kantor to help you whether you're buying or selling. It was a great experience. We never imagined it would go as smooth as it did. The Laluna's (Andy, Maria & Tony Jr)”

Maria Laluna

“A Pleasure to work with - I highly recommend them! Working with Richard Wilder was a pleasure, and he found us the perfect match.”

Laura Keith-Macario

“This spring we acquired a business that was represented by Richard Wilder at A Neumann & Associates. Small business acquisitions can be very emotional for the sellers and life-changing for the buyers, and Richard was keenly aware of this throughout the process. Although he was working for the sellers and not for us, he knew that most business owners see their business as their baby so the only way to have a happy outcome for his clients was to also have a happy outcome for the buyers. Knowing how nerve-wracking this process can be (think home buying x 10), he never dropped the ball on keeping everyone updated, anticipating potential snags, and guiding us along in the process. We highly recommend Richard.”

Shannon, Buyer

“My business was my baby for over 40 years. It is a tough and cruel world out there when it comes to selling your business. Neuman and Associates provided the professional guidance/protection to get the job done with care and no pressure. In my view a tremendous value. I would recommend them to anyone seeking to sell their business. Eric Storck, president of Blade Runners Inc.”

Eric Storck, President - Blade Runners Inc.

“I’m really impressed with how your firm operates. The focus on confidentiality, the thorough vetting process, and the use of third-party accredited valuations really stand out. It’s easy to see why you’ve built such a strong reputation over the years.”

Ann M., Investor

“Thanks for sending over such a detailed CIM. While I have only reviewed a have dozen CIMs at this point, your company has put together the most comprehensive data and detailed presentation I have seen so far.”

Ben N., Investor

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Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

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Selling Your Business – The Top Reasons to Hire An Advisor

About A Neumann & Associates, LLC

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Any questions? Please contact us at 732-872-6777

Client Testimonials