Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

March 2, 2013

“I don’t need a valuation. I KNOW what my company is worth.” = Big Trouble

By Joseph Eneldas


Accountants and licensed CPA firms will be the first people to corroborate the assessment– that valuing a business is a specialized discipline that requires specific expertise. While accountants and professionals do play a key role in the gathering of necessary current financial information, they rarely offer accredited business valuation services because industry specialization is required to properly perform them.  Financial professionals will advise clients if asked, to seek out an independent business valuation from a qualified firm to determine true market value.

Here at A Neumann & Associates, our challenge is to help business owners understand that a “rule of thumb” number provided by an accountant or related professional, is simply a snapshot in time, and not a credible number on which to base any critical decisions.  Valuations that are not done independently carry no weight for buyers or lenders.  They can only be used internally.

According to Achim Neumann, President, A Neumann & Associates, “Our valuation firm uses an in-depth valuation process that includes a myriad of different assessments.  Using only one approach, (while it may seem attractively simply), could lead to catastrophic mistakes in a business owner’s decision making process. “

Book value (Asset/Cost Based Approach), for example, is one of just seven approaches that the professionals at A Neumann & Associates obtain from the valuation firms. Each independent valuation will value differently according to relevance, certain weighted averages and measures, in a blend of the various valuation methods.  In many cases, particularly in strongly cash flowing enterprises, the book value will carry little to no weight in the overall value analysis of the business.

According to Neumann, “Because we are involved in so many deal making experiences, our business brokerage firm has unique insight into the buyer side of business acquisitions.” Qualified buyers will be looking for an “arms-length,” independent Third-Party valuation of a company when considering a purchase.  Not having one will work against sellers, signaling to buyers, that you are not serious or not prepared to sell your business.  Keep in mind that personally derived valuations carry no credibility for buyers or lenders.

Examples of BIG TROUBLE…

  • Imagine self-valuing your company (or taking your Accountants “rule of thumb” value) that is too high and basing major decisions like business sale, capital expenditures, labor force hiring’s, etc., on a “number” that has no factual financial backing in the marketplace.
  • The majority of a business owner’s net worth is usually tied up in their business. Yet, at A Neumann & Associates, we see owners again and again who are misinformed or have no idea of their company’s actual value.
  • The same holds true for the opposite scenario. Undervaluing the worth of your businesses may lead to missing out on existing market opportunities that may have been funded by your actual increase in Fair Market Value.

Lesson: Don’t find out ten years from now—do it now. Your business needs a report card. Assess where you are today… so you can be headed in the right direction tomorrow.

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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Client Testimonials

“ I appreciate your diligent approach to screening buyers and sellers as well as the high quality CIM that you produce.”

Andrey O, Investor

“Finally enjoying retirement after recently selling my business using the services of A Neumann & Associates. Joe Oddo provided the conduit to a successful transaction. Joe knew when to inject input and when to simply listen and allow the buyers to vent, step back and regroup. The outcome met our expectations and got us to the finish line, which included my staying with the company six months in order for the buyers to get their footing and keep our workforce in the loop. He helped at every step by providing his expert guidance & resources. Thank you!”

Emily Parker Myers, Co-Owner - Myers McRae

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

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
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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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