Slow But Continued GrowthPublished August 1, 2012 | By Achim Neumann, President The summer months have always been somewhat slow in the business brokerage industry. Buyers and sellers prefer the “cool” environment of the beach and parks over the “hot“ transfer of businesses. “We have had a significant number of business valuations performed in the second quarter an... [read more]
Justifying a Sale PricePublished July 8, 2012 | By Achim Neumann, President In a recent banking and finance article in NJ Biz, we underscored the changing attitudes of business owners toward more realistic values for their businesses. “I think everybody recognizes that the market is not going to go back to the crazy days of 2007,” said Achim Neumann, President, A Neuma... [read more]
Offer Received…Now What?Published June 3, 2012 | By Achim Neumann, President Receiving a purchase offer on a business is very often perceived by business owners as the “finishing line,” whereas in reality, this is only the first step in transferring a business. “Too often, we can sense the business owner’s excitement and relief from finally having received an offer... [read more]
How Much Risk Is Too Much?Published May 7, 2012 | By Achim Neumann, President In any business transfer, there is risk involved for both buyers and sellers. Unfortunately the risk cannot be completely avoided, and so, we wanted to take a closer look at the respective risk components involved on both sides. “We try to minimize the transaction risks as much as we can,” says... [read more]
Business Valuations — Not Just For Sellers AnymorePublished March 4, 2012 | By Achim Neumann, President 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 ... [read more]
2012 Seminars & Talks: What Is Your Business Worth?Published February 6, 2012 | By Achim Neumann, President One of the most challenging tasks business owners face is defining the Fair Market Value of their business. Again and again, questions regarding the various methods used to determine a fair asking price are raised. And, for good reason. Defining this number is no easy task— there are many varia... [read more]
Predictions for 2012— What Now?Published January 8, 2012 | By Achim Neumann, President As a recent Wall Street Journal article noted, there had been as many incorrect projections for 2011 as there had been correct ones. Thus, we will not even venture to attempt a prediction for 2012, short of noting that the three key challenges transferred from 2011 into the new year are the same: a... [read more]
A Neumann & Associates Expands Operations With New Director of Marketing and Redesigned WebsitePublished December 5, 2011 | By Achim Neumann, President PRESS RELEASE A Neumann & Associates is happy to ring in the new year with a number of new announcements including an expansion of its operations with the appointment of a new Director of Marketing, and the launch of a new website redesign. During this time of industry contraction, A Neumann &a... [read more]
Where is “the beef?”Published November 7, 2011 | By Achim Neumann, President Borrowing from a recently revamped Wendy’s advertising campaign, the question “where is the beef” is often translated by business owners into “how will the buyer finance the transaction?” “In times when financial resources are more limited, a financial structure becomes paramount in fac... [read more]
How Do You Measure Goodwill?Published October 9, 2011 | By Achim Neumann, President We are often asked by clients how we assess Goodwill. “It must be the most frequently raised issue in the valuating process,” says Achim Neumann, President of A Neumann & Associates, New Jersey, “and indeed from an owner’s perspective, several issues come into play, such as customer a... [read more]
Small Business Climate Change?Published September 14, 2011 | By Achim Neumann, President Traditionally, the summer months of July and August have been slow in the business brokerage industry. Buyers and sellers do not have their minds set on transferring businesses during the dog days of summer. “This year, however, has been quite different,” says Achim Neumann, President of A Neum... [read more]
The Three Popular “Myths” Of Selling (Or Buying) A Business?Published August 8, 2011 | By Achim Neumann, President Over the past ten years our firm has been involved in many discussions with business owners considering the sale of their businesses. There are a few particular myths that have repeatedly surfaced during these discussions. “A typical business owner will sell a business only once in his or her lif... [read more]
Recession Offers Small Business Opportunities in Second QuarterPublished July 12, 2011 | By Achim Neumann, President For the second quarter of 2011 it looks like Main Street and Wall Street will present two very different pictures. While large publicly traded companies are expected to report strong profits, small businesses across the country are still dealing with tight credit, nervous customers and increased co... [read more]
Rules of Thumb to Value a BusinessPublished May 9, 2011 | By Achim Neumann, President Quite often, we are asked during presentations which ‘multiple’ is the right one with which to assess the value of a business. Without doubt, most business owners then volunteer that the EBITDA multiple (Earnings Before Interest, Tax, Depreciation, Amortization) is the best single criteria. H... [read more]
Financial Aspects of Selling a BusinessPublished April 3, 2011 | By Achim Neumann, PresidentWhat are some of the financial aspects of running a business while selling it? Most owners know more about running a business than selling it, which can be a daunting task by any measure. A business transfer is complicated endeavor, and if not executed properly, runs the risk of losing substantial v... [read more]
Small Business Recovery Act Difficult to QuantifyPublished March 8, 2011 | By Achim Neumann, President The 2009 tax breaks President Barack Obama signed into law should have bolstered many small businesses. Instead two years later, there is still confusion, and according to many, underutilized opportunities. Most small businesses agree that the Recovery Act’s impact is difficult to quantify. While... [read more]