Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

December 17, 2019

Top Reasons to Conduct a Business Appraisal

By Achim Neumann

Business owners often shy away from conducting an appraisal of their business. This is typical because of the cost attached to the process. However, there are certain situations that a business could face that would make it necessary to appraise their business and have a firm understanding of its value. Read on to learn some of the reasons that you might have to conduct a business appraisal and some that make sense as a savvy business owner.

  1. To Transfer or Gift Shares

Business appraisals allow shareholders to know the value of their shares and how much they can give as gifts to their children or others. In the US, gifts of shares exceeding a certain amount will be subject to taxation by the government.

  1. Requesting for Investment Funds

A company that is looking for investors must have a clear knowledge of what their business is worth before asking for investment funds. While there are different metrics that can be used to determine value, an accredited, third-party business appraisal is usually preferred.

  1. To Give to Charity

Companies who wish to give to charities are able to receive tax deductions for their generosity. However, in order to receive tax deductions, companies are usually mandated to conduct a business valuation.

  1. For Divorce Proceedings

In many states in the United States, if you decide to get a divorce, your partner may be entitled to half of your financial assets. This could also include any shares in a business. In the event of a divorce, a business appraisal will need to be carried out to determine the worth of the business.

  1. Legal Settlements

If a business loses a legal dispute, its insurance company may refuse to cover the payment. In that case, business interests may need to be sold to pay off the debt. A business appraisal will need to be conducted in order to sell these interests.

  1. To Sell Thee Business

If a business owner decides to sell their business, he needs to know what the business is worth so he can decide what price to intelligently ask for. An unbiased third-party business appraisal will give him the info

  1. To Plan for Death

Nobody can live forever. If you are a co-owner in a privately held business there should be an agreement in place that details what is to be done in the event of your death. Typically, this is covered in a buy-sell agreement. However, before a buy-sell agreement can be drafted, a business appraisal is typically conducted.

  1. For Knowledge Purposes

Even if your business is not up for takeover or the subject of a legal dispute, it is always good to know what it is worth. This will help you plan for future moves with a clear vision of your assets and liabilities.

Business appraisals may be expensive, but there are many reasons why they should be conducted. Make sure you use a reliable professional to conduct a valuation for your business.

Whether you’re looking for a business appraisal in New Jersey, business appraisal in Connecticut, or anywhere in the US, let our business appraisal professionals at A. Neumann & Associates, LLC aide you in the process.

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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