Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

January 6, 2013

Fiscal Cliff Resolved…Now What?

By Joseph Eneldas

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We’ve learned over the years that holidays are a time for many companies to take a step back and reflect. Many use this time to formulate new plans, budgets and human resource allocations for the upcoming year.

“The same principles apply to us as an M&A and business brokerage firm,” says Achim Neumann, President of A Neumann & Associates, LLC, New Jersey. “However, we have the distinct advantage of speaking with hundreds of business owners during this period, giving us unique insight into their expectations and thinking for the upcoming year.”

In any given month, the A Neumann & Associates professionals interact with anywhere from 500 to 1,500 business owners along the vital New York to Washington DC corridor. Recently the company opened its fifth field office, which will be managed by newly appointed Director, Marketing, Southeast PA and Northern DE, Michael Feite. The company provides professional business services from Southern New York State to Northern Maryland and Delaware.

So, is there a common theme we hear echoed among business owners?

‘Guarded optimism’ seems to be a fair description of the general expectations. Most business owners are relieved about avoiding the infamous fiscal cliff—while recognizing the continued challenges ahead—and have reconciled themselves to the fact that the new healthcare regulations will be coming into effect. A considerable regional challenge continues to be the rebuilding that must take place as a result of Superstorm Sandy, particularly for the New Jersey shore counties. As an example, a business owner located on a major highway leading to the beaches explained that she lost 75% of her customers, “because nobody lives there anymore,” even though her business plant was not directly impacted.

“We feel that this ‘guarded optimism’ will gain momentum as the year progresses” says Neumann. “We have seen numerous leading indicators pointing up in our business, for example, valuations.” Valuations very often indicate a business owner’s desire to transfer company ownership, and with over 30 companies undergoing a valuation at this time, there is most certainly an uptick compared to 2012.

In addition, another trend has established itself throughout 2012. The average age of business owners approaching the company to sell their businesses has significantly increased. “At no time in the past have we interacted with so many business owners over the age of eighty” says Neumann. Presumably a lot of folks have waited since the massive downturn in 2008 with hopes of a return to a 2007 type of environment. However, they also recognize that such profitable times will not materialize within the current time period, so the decision was made to implement exit strategy planning—albeit very, very late.

In sum, these predictions reflect the ‘guarded optimism’ of many business owners for 2013. The company projects continued growth with more deal-making due to more ‘quality’ profitable businesses becoming available, and an environment driven by many very well-financed, highly experienced buyers who will be very selective when choosing a business to invest in.

From the firm’s point of view, this will require  cautious expansion with the additional opening of new offices to better serve clients. Expansion will allow the company to not only offer a wide spectrum of M&A services, such as legal and accounting/tax advisor referrals, acquisition financing and deal structuring, but also to offer these services throughout a wider geographical area.

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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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“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

“Purchasing a business through this firm was a pleasure. Gary was very professional and transparent throughout the entire process. I look forward to working with A Neumann & Associates in the future.”

William Klemens, Buyer

“I utilized A. Neumann & Associates to assist in an M&A process. They are VERY thorough in using their time-tested process to calculate the value of investment opportunities, a process which provided a very detailed explanation for the value of the potential opportunity. Additionally, they also went above and beyond to extend other services including connecting with others who specialize in your industry and can assist with necessary steps including legal and accounting. Highly recommended!”

Edward Lane , Business Owner

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Achim, who explained the process in detail. He had his colleague Gary come to my office 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 when the time comes for me to sell my business for max value. They gave me great insight into the steps I need to take now to get the best deal in the future. I highly recommend this firm to anybody who wants to sell now or down the road. They not only know their stuff, their actually just real nice guys.”

Robert Kardane, Business Owner
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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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