Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

February 10, 2015

Be Proactive to Maximize Value

By Joseph Eneldas


Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.   — Sun Tzu

Selling a company is a monumental job – one that most business owners expect (and hope) to do only once in their lives.  After all, the company is generally the most significant asset for owners of small to mid-sized businesses, and with so much riding on the outcome, the owner better get it right.  And getting it right hinges on planning and preparation.

Without adequate planning and preparation, the owner will inevitably pursue a passive approach to selling a company, and we have all heard the horror stories that result.  The business isn’t ready to sell – there are major policy, operations, and financial issues that have not been addressed.  The books and records are a mess.  Nothing has been done to identify the true market value of the business.  The alleged buyer strings along the seller for as long as possible and many times the deal falls apart after months – or years – of negotiating.

“We look to begin work with business owners early on, to develop proactive strategies that offer greater control and maximize the outcome,” says Achim Neumann, President and CEO of A Neumann & Associates, a mergers and acquisitions firm in NY, CT, NJ, PA, MD, DE.  “With the proper guidance, business owners can schedule, plan, and engineer a successful exit to suit their unique requirements.”

A proactive exit strategy can be powerful and effective.  It allows a business owner to obtain a higher cash yield from the sale, as well as to maintain leverage and control of the process and negotiations.  With a proactive strategy, the business seller, not the business buyer, sets the pace and drives the process forward.

The advantages of starting early are significant:

First, time is available to realign organizational objectives and prepare the company for acquisition, thereby enhancing it as an investment opportunity.  “Time to plan, prepare, and create maximizes the value of the business,” says Neumann.  “The differences can be dramatic.”

In addition, leverage, control and credibility are more easily preserved on the sell side of the table when there is a good plan in place.  A lack of planning or running out of time concedes leverage and control of the sale to the prospective buyer.

Furthermore, specific requirements for the deal structure, tax considerations, or specific terms and contingencies can get addressed far in advance.  “The ultimate objective is to maximize the net cash from of a business sale.  Planning for these deal-specific elements is necessary to maximize after tax proceeds,” says Frank Arcoleo, Managing Director for Central Pennsylvania.  “Finding out about these issues and trying to address them deep in the negotiation process could undermine the deal.”

With adequate time and planning, there is an opportunity to discover and address issues large and small.  Business Sellers have time to develop appropriate message points to address potential buyer concerns and to present them in the marketing package.  Without proactive attention, key issues can slip by unnoticed, and this can potentially deteriorate the perceived value of the company when they surface during negotiations.

Design and plan a successful exit first, and then sell the company, and you’ll never go wrong.

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

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Client Testimonials

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

Double Diamond

“Used A Neumann & Associates to sale my business. could not imagine having done it with out the patience and experience Gary provided. Thanks Gary,”

Dennis Frazier

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi

“Claus out of Florida helped us with the sale of our business. We had never done anything like this and him and his team walked us through the process from start to finish. We had some challenges through the process and Claus continued to show up even in the difficult conversations.”

Colby Harris, Co-Owner, Del Mar Designs

“Claus Madsen thoroughly helped us with selling our company. From the 1st introductory meeting explaining to us what was possible, to providing us with resources to assist with the sale. Claus was invaluable throughout the whole sales process. Claus was with us every step of the journey and always made himself available for any questions or issues that came up along the way. If you are interested in selling your business, I encourage you to reach out to Claus and the ANA team so that they can let you know what’s achievable. These guys will make it happen!”

Ron Harris, Co-Owner and Vice President, Del Mar Designs
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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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