Business Valuations Massachusetts

At A Neumann & Associates, LLC, we are committed to thoroughly preparing our clients to sell their business. We know that selling a company can be a painful experience, a joyous experience, or both. When you are ready to get rid of a business because it makes sense to do so, we can help you. A Neumann & Associates, LLC offers mergers & acquisition advisory, business brokerage, and professional financial services.

You have worked hard building your business, and we want to make sure you get the right price for it. We can take care of the business valuation for you. The 30-page prospectus we create for you will help you get the price you deserve.

When we partner with you, we will use multiple valuation metrics to determine your company’s value in Massachusetts. A Neumann & Associates, LLC offers more than a CPA ever could. An ordinary accountant will look at your tax returns. We will determine the true cash flow and show your buyers the kind of money your business has the potential to earn for them.

Pricing a Business

Our trained staff has many years of experience in business sales. We will meet with you to go over all the essentials of selling your business. We require your last three years of tax returns.

We know that most businesses are undervalued, so we use the services of several different pre-qualified valuation companies to determine your business’s true value.

There are many different factors considered when valuing a business. We look at things such as financial history, the type of services you offer, and your industry.

How To Valuate A Business

There are several methods used by valuation companies to determine a price for your company: Single Period Capitalization Method; Excess Earnings Method; Discounted Cash Flow (DCF) analysis, also known as the intrinsic value approach; comparable company analysis, known as Market Approach; and book /FMV asset approach.

Discounted Cash Flow Analysis

Cash flow analysis, also known as income analysis, values a company based on its future earnings. It uses various market research tools to determine what a business will earn in the future. It is most often used for established businesses with a proven track record of profitability.

Market Approach

This approach is often used for the sales of public companies, however , with access to thousands of business closings, we include such value determination.. The research for larger firms is easier to do because information can be obtained from public newspapers such as the Wall Street Journal.

Comparable Company Analysis

When this type of analysis is used, the client’s business will be compared to other businesses like it. We will look at the closed transactions of companies of the same size and in the same industry over five years. This method uses the amount of money comparable businesses have sold for to determine a price.

This is one of the most difficult types of valuation because you have to find the right companies to compare with your own. Cash flow should be very similar, so we will have to look at similarities and differences because of taxes, depreciation, and earnings before taxes.

How Covid Has Affected Valuation

COVID-19 changed the way some valuations are done. Businesses have new regulations that have changed the way accounting records are kept. Professional organizations have continued to adopt new methods for evaluating business performance since the pandemic.

There are a lot of businesses that are being put up for sale these days. Small businesses have suffered, and there is a major supply chain crisis. Many small companies stayed afloat because of government stimulus packages that cannot be relied upon forever. It is important to have a professional evaluation company like ours help you show the value of your company to potential buyers in a post-Covid world.

Applying Discounts

Before one can set a price on a business, we will have to figure out how or if we should discount its value for sale. Sometimes selling a business will cause the value to go down temporarily. If the business has a well-known owner or is attached to a well-established brand, it may lose customers at first. For example, when National Geographic was sold to Rupert Murdoch and Fox News, many people canceled their subscriptions, thinking that the magazine would be turned into a tabloid.

Frequently Asked Questions

While these are the most common questions we receive at A Neumann & Associates, LLC, we’d be happy to address your specific questions.

Why should I use a broker instead of an accountant?

An accountant will primarily look at your tax returns to value your business. They will not look at intangible assets or future profitability. Furthermore, an accountant is not suited to sell a business.

Why should I use your company?

We have an A + rating with the  Better Business Bureau. Our staff has the experience needed to evaluate businesses large and small.

Is it expensive?

A valuation can seem expensive when you may have cash flow issues. However, the price you will get for a company that has undergone professional valuation is likely to make up for it. Regardless, a valuation typically costs less than the company’s annual tax return preparation.

Massachusetts Valuation

If you need to know the value of your business, call A Neumann & Associates, LLC today. We look forward to creating your prospectus and partnering with you.

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 to fill out a short 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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