Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

October 9, 2012

Current Acquisitions Focus on Top Line Revenue Growth

By Joseph Eneldas

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Two recently published news reports are reflective of trends we have seen in the market, both of which highlight the focus on top line revenue growth and reduced hiring.

First, a recent survey of business owners by the Wall Street Journal found that half of small business owners expect that the country will not avoid a tax increase—the so-called “fiscal cliff”—unless Congress and the President agree on a new deficit-reduction plan. Many fear  an end to the 12 to 24 months it took to rebuild revenues since the recession ended.

Meanwhile, a second report indicates that many small businesses cut back on hiring and have lowered their staffing plans, according to The National Federation of Independent Business, a small-business trade group. This observation is supported by PNC Financial Services Group, indicating that less than a quarter of the surveyed companies expect to add new employees over the next six months.

“The trends described in these two reports are somewhat reflected in our business,” says Achim Neumann, President of A Neumann & Associates, New Jersey. ”Businesses that lend themselves to consolidation with larger firms find more interested buyers than those with lesser economies of scale; in short, the growth of the top line is a key driver.”

As an example, most recently the firm accepted an engagement with a leading logistics operation in New Jersey searching for an investor or an outright sale. “The interest level was absolutely fantastic,” says Gary Herviou, Director Marketing, Central New Jersey,” we have had over 50 inquiries within a time span of just ten days.”

Frank Arcoleo, newly appointed Director Marketing, Eastern Pennsylvania, adds, “Stand-alone retail businesses with limited upside potential in an acquisition, and even restaurants, have experienced a considerable decline in inquiries by potential buyers over the past nine months.”

A Neumann & Associates has taken the opportunity to expand its consulting operations by providing various business owners with value-added services, introducing specific industry analysis and expanded valuation services. As Michael Gersten, representing the firm in Northern NJ and Southern NY State, points out, “We recently initiated the valuation of an advertising publishing business, with the folks having gone through serious consideration before moving forward— and already, we have interested investors.”

Despite the looming fiscal cliff and limited hiring activities, eventually such challenges will be resolved. “Business owners who have completed the valuation process, and who have a business ready to be sold, will be in a considerably better position than owners who are only starting to think about a sale,” remarks Steve Wrubleski, Director of Marketing for South NJ and Philadelphia. “And in light of that fact that many business owners have held back on retiring for 3 to 4 years, exceeding the typical ‘retirement age’ of 70 to 75, we have a significant backlog of businesses getting ready to come onto the market.”

See our latest Hotsheet listing of available businesses


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 info@neumannassociates.com

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“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!”

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“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.”

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