Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

October 22, 2020

The Importance of a Hiring a Pro-Business Attorney

By Achim Neumann

Legal counsel, per definition, should always protect its client’s best interests. However, if you are in a business purchase or sale process, they should also be aware of certain demands or stances that could seriously impact outcome final transaction closing.

An ideal attorney should be deal-friendly and have a transaction-wise mentality in order to make sure expectations are met. If you are transparent with your lawyers regarding how interested you are to close the deal, they should be more thoughtful and attentive that their buying or selling requirements are not too outrageous or complicated for both sides.

See below for some of the key aspects that your legal counsel has to consider in any buying or selling process:

  1. That both sides thoroughly understand the transaction, that is, the business being purchased or sold;
  2. That all corporate records, financial statements and regulatory duties are complete and up to date;
  3. That all current insurance policies and agents are described and available.

If you are dealing with a partnership or any other business structure with more than one owner, there needs to be one appointed representative that speaks for the group, and such representation should be in a written and signed form by all owners or stockholders.

It is crucial that the buyer and the seller both have the same clear understanding of the terms of sale and its details. Therefore, good communication between the buyer and seller is one of the main priorities, as either side, while having their own perception of the deal, can sometimes not understand completely who’s getting what, as a small misunderstanding can completely doom the sale.

The relationship between each party and its attorneys should be completely transparent, confidential, and they should always express how interested they are in closing the deal. No assumptions or unilateral decisions should be made by lawyers without consulting their clients, and if an issue needs to be addressed, it has to be before any final decisions are made. Sometimes, even after the offer is signed, mistakes are made when attorneys from either side assume that everyone else is doing their part and then the process becomes more complicated with now unaddressed issues. Without realizing, a small misunderstanding can make the other side angry, damage therefore cannot be contained, and the sale is unfortunately never going to close.

The issue of having to deal with business lawyers can be mitigated by utilizing the services of a professional business broker firm. Throughout years of operations, business brokers have a wide network of qualified transaction attorneys, and a good business broker will give each party always three attorney referrals to be interviewed. Additionally, with enough previous experience and knowing the entire operational processes, they can make the entire sale much simpler for both sides, while simultaneously, being an independent mediator to the deal. In any case, it’s good to remind that it is essential that both sides have the same understanding and approach to the sale in order for it to happen.

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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James Belanger, Business Owner

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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

“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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