Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

March 4, 2012

Business Valuations — Not Just For Sellers Anymore

By Joseph Eneldas


When interacting with small to mid-sized business owners and their advisors, there is increasing evidence that “strategic” business valuations are being employed as a vital planning tool.  A recent study indicated that over 65% of the total valuations performed in 2011 were “strategic” in nature, meaning they were requested by owners with no plans to sell within the next three years.

“The increasing number of strategic appraisals is confirmed locally at our three offices here in New Jersey,” says Achim Neumann, President of A Neumann & Associates.  “The trend is that savvy business owners realize that they need to establish a baseline value for their business in order to then improve certain features of it.”

Simply put, there are generally two types of business valuations. “Transactional valuations” are utilized for a sale or transfer of ownership, and “strategic valuations” are established to determine the key factors driving the value of an operation. While both types of appraisals are essentially the same in that they represent an independent third-party, fair market value of the company, the difference lies in the way that the client uses the valuation information.

For a business owner not looking to sell, there are various motivations for obtaining a business valuation.  We increasingly find business coaches, financial planners, estate attorneys, wealth managers and CPAs suggesting that their clients look into the business appraisal process for the purposes of family succession planning, partnership buy-outs or disputes, business expansion and long term exit strategies.

“Over 85% of business owners do not really know what their company is worth,” notes Gary Herviou, Director Marketing, Central New Jersey.  “The business owners we speak with are recognizing that they must get a handle on this information in order to address certain concerns and put themselves in a position to ultimately meet their long-term objectives.  After all, how can you get to where you want to be if you don’t know where to start from?”

It’s only natural for small and family-owned business owners to spend the majority of their time thinking about things such as short-term cash flow, personnel issues, customer satisfaction and the like.  The wise businessperson however, also finds the time to look at the bigger picture by understanding what the true value of their largest asset is— the business itself.

“Typically, 80% of a business owner’s net worth is tied up in his privately held business, and it’s important that this asset is maximized in the long term” says Andre Dubbeling, Director of Marketing for South Jersey.

It’s here that the business owner truly benefits from a strategic valuation so he or she will have all the information required to succeed and effectively position their business for a sale ten or fifteen years out. The increasing demand for strategic business valuations is clearly evidence of this positive trend in the marketplace.

For more information about how A Neumann & Associates can assist with business valuation services, please call 732-872-6777.

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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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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