Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

November 5, 2010

New Jersey Small Business Transactions Are Still at a Low Volume Level

By Joseph Eneldas

Atlantic Highlands, NJ, November 5, 2010 – A Neumann & Associates, a ten-year-old NJ business broker and business valuation firm has announced that they are seeing small business transactions at a low volume level for the second year in a row.
A significant indicator of small business environment health is the number of businesses bought and sold.  1,117 U.S. small businesses were sold during the third quarter of 2010, approximately the same number that sold last year during the same time period. By contrast, there were over 345 more sold either via business sale by owner or through business brokers, during the same period two years ago in 2008, according to reports
While other areas of the business continue to grow, A Neumann & Associates reports stable activity levels for the business transference portion of their business broker NJ company.
Similar to the housing market, a combination of tight credit, nervous buyers and owners unwilling to sell at discounted prices has left the small business marketplace without growth. And, they say, for small business owners hoping for a big payoff when selling their businesses via NJ business brokers, most will need to reset their expectations.
During tough economic times some owners might be forced to sell out of necessity– even as potential buyers stay away for fear that the market still needs to swing up. “This pushes down the value of many businesses that are up for sale, while at the same time reducing the number of businesses that change hands across the board.” according to Achim Neumann, President of A Neumann & Associates, NJ business brokers.
Some owners say they have identified interested buyers, but that some of these buyers are unable to obtain sufficient funding amid declines in loans guaranteed by the SBA (Small Business Administration). The agency backed $16.84 billion in loans in 2010, down from about $20.61 billion in 2007.
“One of the problems is that owners are not going through the proper business valuations and as a result are coming up with price tags greater than their companies’ true value,” said Neumann. Many business owners are shying away from the  marketplace as a result. Though the number of enterprises sold in the third quarter was the same, there was a 7.1% decline in listings from a year ago, to 31,856, according to BizBuySell.
“Many sellers are offering to finance part of the asking price for buyers to help close the gap, whether they use a business brokers or do a business sale by owner” added Neumann, “We’ve been seeing a sharp increase in this type of arrangement over the last 20 months.”
During the third quarter of 2010, small businesses were listed for a median price of $245,000. However, the average closing sale price in the period was $140,000, 6% less than what owners sold their businesses for during the same period in 2009.
“Some owners are waiting for the market to bounce back and business valuations to go up while others believe we’re already there. It can be a very subjective and emotional situation,” explains Neumann.  “We try to take the emotion out of it by putting rigor around what can be a long, messy process left in inexperienced hands.”  For more information, please contact A Neumann & Associates at 732-872-6777.
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 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

“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
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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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