Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

September 19, 2018

How to Sell a Startup For The Highest Amount Possible

By Achim Neumann

Some may consider it a foolish notion to begin planning for the sale of a startup from the moment that it becomes successful, but in doing so, one can find the highest value for a business which may have reached its terminal velocity. A merger and acquisition is something which any startup CEO should be looking into, from the very moment that the business has reached success, with analytics and finances also in great shape. An M&A will not happen overnight of course, which is why the preparation work is so important and here are some of the ways that business owners can plan ahead for the exit, while still maximizing the amount of money that they can receive  when they do.

Increasing Credibility

Simply having a great product or a great business is not enough for people to be interested in a CEO deciding to exit, one must also build up credibility in relation to the business. Working within the sector, it’s important that a startup’s owner is vocal about the industry, about their own business, and contribute regularly to the changing face of the sector.

Hitting the Circuit

Using the credibility that has been built up through article contributions, podcast guest slots or any other way the CEO has decided to drum up some credibility, the public speaking circuit awaits. Not only does speaking publicly gain further credibility, it also gives owners the chance to sing praises about their business, well in advance of looking for the exit.

Networking Action

Most M&A are made by companies within the same industry, and this is why networking in and amongst other founders makes for such a great idea. What this does is tests the waters amongst fellow owners to see who may be interested – for future reference of course – but it also gives access to the fellow business owner’s contact list, which could help with a profitable exit further down the line.

Get The PR Machine Rolling

The key reason to plan an exit well ahead of time is to maximize the potential profit. During this time it is vital that a business has everything lined up and in place, and that it’s telling the world about it. Finding a USP, growing a brand, having an identity, a strong customer base, a great product, solid contacts, these are all keys to an attractive business which need to be put in place. Once these pieces are in place, the world should know about it through a smart PR strategy.

Hitting the Right Moment

Knowing when to sell a business is often one of the hardest aspects of the exit, and many business owners lose out because they sell at the worst possible moment. A slow market is not a great time to sell, nor is selling when the company is posting poor results. The best time to sell for the big money, is in a blossoming market when the business is crushing it, sell at this time, and the value of the company will be sky high.

Plan the M&A from the beginning, and the profitable ending will look after itself.

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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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!”

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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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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.”

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