Category: Economic Trends

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January 8, 2012

Predictions for 2012— What Now?

By Joseph Eneldas

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 hobbled…

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November 7, 2011

Where is “the beef?”

By Joseph Eneldas

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 facilitating a deal” says Achim Neumann, President of A Neumann & Associates in…

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October 9, 2011

How Do You Measure Goodwill?

By Joseph Eneldas

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 and vendor relationships, patents, employees, and so on.”…

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September 14, 2011

Small Business Climate Change?

By Joseph Eneldas

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 Neumann & Associates, New Jersey. “We have had…

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August 8, 2011

The Three Popular “Myths” Of Selling (Or Buying) A Business?

By Joseph Eneldas

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 life, and as a result typically…

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July 12, 2011

Recession Offers Small Business Opportunities in Second Quarter

By Joseph Eneldas

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 costs. “We still see many small and midsized business…

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May 9, 2011

Rules of Thumb to Value a Business

By Joseph Eneldas

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.  However, only relying on earnings can be short sighted. EBITDA, by…

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March 8, 2011

Small Business Recovery Act Difficult to Quantify

By Joseph Eneldas

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 a number of companies credit their survival during the turbulence of…

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February 10, 2011

New Small-Business Tax Proposal

By Joseph Eneldas

On Monday, the White House announced several  small-business initiatives, including an extension of the permanent capital-gains tax relief for small company investors. The White House will also announce the creation of a new, private organization called Startup America, aimed at getting private companies to expand their support of entrepreneurship programs. Small business owners have long…

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November 5, 2010

New Jersey Small Business Transactions Are Still at a Low Volume Level

By Joseph Eneldas

PRESS RELEASE   Atlantic Highlands, NJ, November 5, 2010 – A Neumann & Associates, a ten-year-old NJ business broker and business valuation firm has announced that they are seeing small business transactions at a low volume level for the second year in a row. A significant indicator of small business environment health is the number…