Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

November 10, 2012

Making the Most of Uncertain Times

By Joseph Eneldas

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The election is over, but most business owners agree that the economic uncertainty they had hoped would vanish is still with us and will remain so for the foreseeable future.  So what are the implications for an owner who is interested in selling his or her business and retiring during the next 12 to 24 months?

Many owners focus on the top line of the transaction, the sale price.  While it is always important to get the highest price possible for a business, that isn’t the only factor.  “The most important thing is not what you sell the business for, but how much of that selling price you get to keep after taxes,” says Achim Neumann, President of A Neumann & Associates, New Jersey.  “An owner who properly structures the sale transaction to minimize the tax impact is often significantly better off than one who focuses only on the selling price.”

To that end, our firm is already working with a major banking partner to assist our clients by designing deal structures that meet their objectives. “A typical client,” says Gary Herviou, Director Marketing, Central New Jersey, “has three separate uses for the proceeds from a sale: personal retirement income, charitable contributions, and providing for their children and grandchildren.”  As Michael Gersten, the firm’s representative in Northern NJ and Southern NY State, points out, “With the proper deal structure, the value of proceeds available for all three purposes can be significantly enhanced.”

“There are numerous vehicles for maximizing post-tax values of deal proceeds,” says Frank Arcoleo, Director Marketing, Eastern Pennsylvania. “For example, dynasty trusts can be used to make large financial gifts to multiple generations of family members while minimizing gift or estate taxes.”  Which vehicles are right for you?  It depends upon your objectives.  Setting up a donor advised fund, for example, can create a much larger charitable contribution than a simple gift.  Each situation requires its own analysis and decisions.  “But the bottom line is that using these techniques can produce the same after-tax proceeds as if you’d sold the business for 40% more,” adds Arcoleo. Bottom line, the right strategy can save you a lot of dollars and headaches.

“At A Neumann & Associates, we make sure you get the proper advice from the right professionals before executing any transactions, and we help you every step of the way,” remarks Steve Wrubleski, Director of Marketing for South NJ and Philadelphia.

Achim sums it all up, “Our unique process adds value at each stage.  Valuations provide sellers with an independent appraisal of their business so that it can be priced appropriately.  Our assistance during the marketing phase ensures that transactions remain confidential and that only qualified buyers are presented to our sellers so their valuable time is not wasted.  We make sure that there are no surprises during due diligence and that the closing is smooth.  And finally, we make sure that our clients get to keep the maximum amount of the proceeds for the purposes they intend.  It’s a win-win-win situation.”

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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

“ 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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