Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

February 5, 2013

Business Sellers Should Demand an Independent Valuation……Ahead Of Time

By Joseph Eneldas


If a small business owner wants to sell a company now or sometime within the next five years, an independent business valuation in New York City or wherever your bussiness is based is an essential first step.  If the time is now, then the appraisal serves as the basis for a potential deal structure.  Should a potential transaction be further down the road, then the valuation provides information for  properly positioning the firm to maximize financial return when the time comes.

“Here at A Neumann & Associates, we require that an independent third party market valuation be put in place prior to any sales engagement,” says company President Achim Neumann.  “Our 25 years of experience shows that the benefits to the small business owner are significant in terms of both time and money.”

Why is a neutral-party fair market appraisal so important?  Let’s dig a little deeper to determine the benefits for a business owner:

  • The Guessing Game is Eliminated– even though some business owners think they know what their business is worth, they are really only guessing or perhaps using incorrect industry rules of thumb.  A multi-dimensional and accurate report of the firm’s worth to prospective buyers will ensure that no money is left on the table.
  • The Need for a Buyer Valuation is Eliminated– if a proper third party valuation (as opposed to one created by the firm’s CPA or broker) is in place, then prospective buyers have no inclination to ask for one themselves.  Any discussion of fair market value should be driven by the seller, not the potential buyer.  An independent appraisal provides the buyer with a value justification and identifies the anticipated rate of return on their financial investment– problem solved.
  • Deal Structure and Market Feedback is Provided– an independent business valuation in Connectcut or wherever a business is headquarted lets the owner know exactly what to expect if he decides to sell his business..  Every industry and business is unique and therefore every business sale provides a distinct set of anticipated circumstances.  A savvy business seller needs to be aware of these beforehand.
  • Value Drivers are Analyzed– the factors that are influencing a company’s value (both positively and negatively) are identified for the business owner.  By knowing exactly where they stand relative to others in their industry and to their own goals, a shrewd owner will be able to implement changes as part of an orchestrated strategy to improve overall value.
  • A Faster Deal Closing is Achieved– since the independent valuation firms we work with are mostly accredited and recognized by the financial community (including the SBA in certain cases), commercial financing is obtained quicker and the seller gets to the closing table approximately two months faster than they would have without one in place.  Time is money, especially when a business is being sold.

“Since joining A Neumann & Associates in 2010, I have seen many small business owners take advantage of the valuation process to better position them for a proper exit” says Gary Herviou, the firm’s Central Jersey Marketing Director.  “Moreover, a smooth transaction is almost impossible without an independent appraisal in place prior to going to market.”  An independent fair market valuation is confidential, cost-efficient and not time-consuming for the small business owner.  More importantly, it can be completed within 10 days after receipt of all documentsand updated every 18 months at very little cost, which serves as a vital tool for measuring progress along the way.

Michael Gersten, Northern Jersey Marketing Director for the company, makes the point clear.  “If selling the business is a possibility, it’s incumbent on the owner to look at the big picture and get the cold hard facts regarding the salability of the company in advance.”

This valuation mindset can be summed up as follows:  value now, plan ahead, and maximize return at closing.  Well-informed business owners will make effective decisions accordingly and reap the rewards upon exit from the business.  The unprepared will just have to take their chances and hope for the best.

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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

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Client Testimonials

“ I appreciate your diligent approach to screening buyers and sellers as well as the high quality CIM that you produce.”

Andrey O, Investor

“Finally enjoying retirement after recently selling my business using the services of A Neumann & Associates. Joe Oddo provided the conduit to a successful transaction. Joe knew when to inject input and when to simply listen and allow the buyers to vent, step back and regroup. The outcome met our expectations and got us to the finish line, which included my staying with the company six months in order for the buyers to get their footing and keep our workforce in the loop. He helped at every step by providing his expert guidance & resources. Thank you!”

Emily Parker Myers, Co-Owner - Myers McRae

“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
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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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