Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

May 6, 2014

Don’t hit the Wall – Buy Growth

By Joseph Eneldas


It’s hard to pick up a serious business journal without seeing articles about major corporations targeting substantial M & A activity in the coming year.  Interest rates are still at historical lows and a number of valuable acquisition targets are beginning to become available.  As a result, all of the big boys are heavily involved in “buying” growth through strategic acquisitions. As a matter of fact, our firm is seeing a strong flow of sellers positioning to exit due to baby boomers and delayed exit strategies post the 2008 recession.

Strategic Acquisitions take planning and time. At A Neumann & Associates, LLC, a leading New Jersey M&A / Business Brokerage firm, we experience intimate access to hundreds of companies that are positioned as prime sellers.

Yet, the small business owner tends to get caught up in the daily management of the business.  Fear and complacency sets in as the business hits a plateau, however, stagnant growth and sluggish sales may be overcome by acquisitions. Small businesses typically seem to hit the wall below the $5 million revenue range and don’t grow from there.

It is here that the small business owner needs to take a page from the playbook of larger corporations, who have learned how to overcome stagnant growth and sluggish sales through acquisitions.  Yes, it’s true that strategic acquisitions take planning and time. But taking that time and doing that planning can be enormously rewarding.  And right now, there are many lenders offering creative financing options for purchasing a business, and seller financing is often available – thereby enabling acquisitions even for smaller businesses.

As a first step, have an outside accredited third party, appraise or value what your business is worth and any opportunities you may have to leverage your assets to take on a purchase of a like business. “Don’t get caught up internally valuing your business as your decision making may be be clouded” says Michael Feite, Managing Director, Eastern Pennsylvania. “A certified business valuation by a third party is the only way to accurately determine true market value.”

As a second step, brainstorm on possible strategic acquisition targets and/or synergistic partners. Think 1+1=3, for example, buying a business that has the same distribution channels or minimizing substantial overhead.

Finally, develop a mid-range business plan. Take the time to finding value through the advantages of acquisition.  Look at prospective businesses and its value drivers early on in your planning process. A typical list of value drivers can include

  • Historic Growth
  • Profit and Margins
  • Customer Diversity
  • Product & Service Mix
  • Five Projections
  • Outside Risk Exposure
  • Synergies

For a thorough discussion and to learn more about opportunities in buying a business (or selling a business), business valuations and value drivers, please contact any one of the firm’s Managing Directors or visit us at our upcoming workshop on May 15, 2014 at the Marriott, Teaneck.

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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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

“A Neumann & Associates is the only business broker I would use or consult with. They have assisted with 3 business sales over the past 15 years with me. They are honest and sincere and have always performed better than my expectations. They are the only one i would use for the sales of my businesses.”

James Belanger, Business Owner

“I wanted to take a second to commend the exemplary customer service from both you [Karin Neumann] and Mr. Valentino. It’s both a rarity in the industry, and very much appreciated.”

Andrew G., Investor

“We worked with Neumann & Associates to investigate the purchase of a research company in 2010 and found Achim to be capable, forthright and realistic. His depth of experience enabled us to fully understand our options, offering creative options that might enable the acquisition. While we didn’t acquire that particular company at that time, we know exactly who to call whenever we’re looking to buy or sell a business.”

Daniel Coates, Buyer
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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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