Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

September 17, 2019

How to Choose the Right Business Broker in Pennsylvania

By Achim Neumann

For most entrepreneurs and business owners in Pennsylvania, the reward for successfully growing a business to profitability is being able to sell it for a decent price. However, finding a good business broker in Pennsylvania who will represent your best interests and locate a worthwhile buyer can be a challenge. For the business owner in Pennsylvania looking for a business broker to help sell your business, here is how to choose the right PA business broker.

Compile a List of Options

The first thing you need is a list of potential business brokers. The most reliable way to make a list is to ask for referrals. This is because people talk about good professionals that they have worked with and gladly recommend them. Speak with fellow business owners, accountants, business developers, financial planners, estate attorneys and other professionals who might have related knowledge and find out if they can recommend a quality business broker in PA. You can start your list with these recommendations and then search the internet for reputable business brokers to include as well.

Conduct Due Diligence

Once you have compiled a list of potential business brokers, you will need to sift through to choose the candidates you will speak with. The first screen should be educational and can be done on the web. Do they have an informative web site including their principals and their background? Have they successfully brokered the sale of multiple businesses? These are necessary preliminary questions that can help separate the wheat from the chaff.

As you do your research, the things you learn about the potential brokers will let you know who to call for talks. Make sure you verify their certifications and investigate their reputation. How long have they been practicing? Are they certified by key organizations in mergers and acquisitions advisory and business brokerage, or just real estate brokerage? Are they experienced with issues around finances and taxation? Do they have a reputation for being honest advisors or do the people who have worked with or for them in the past speak negatively of them? By conducting due diligence properly, you can identify which business brokers to move the conversation forward with.

Ask Important Questions

When you finally go into conversation with your potential brokers, ask questions that will reveal how competent and capable they are of handling the sale of your business properly. Do they have a plan for valuing your business and can you be shown valuation samples? Is the valuation being performed by an independent, accredited, third party valuation firm? How will they find buyers and do they have a good marketing plan? Can the broker attract international buyers? Will the marketing plan include confidentiality? How will potential business buyers be qualified and is there a written process for this?

Take Fees into Account

It is common practice for a Pennsylvania business broker to request up to 10%-15% of the gross value of the business sale in fees. These numbers, however, are negotiable and also depend on the actual value of the business in question. Some business brokers may try to charge as high as 20% but those brokers are unreasonable and should be avoided. You should also refuse to work with any business broker who requests a large advance / retainer fee.

Building a successful business is a difficult task and deserves to be adequately rewarded. If you wish to claim your reward, put the steps in this guide into practice so you will be able to choose the right business broker in Pennsylvania.

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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Client Testimonials

“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

“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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