Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

February 10, 2011

New Small-Business Tax Proposal

By Joseph Eneldas

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On Monday, the White House announced several  small-business initiatives, including an extension of the permanent capital-gains tax relief for small company investors. The White House will also announce the creation of a new, private organization called Startup America, aimed at getting private companies to expand their support of entrepreneurship programs.

Small business owners have long proposed permanent tax breaks encouraging professional investors to fund promising start-ups. President Barack Obama is expected to introduce a 100% capital-gains tax break in his 2012 budget, and would extend a temporary measure originally introduced in September’s Small Business Jobs Act.

The White House tax proposal needing congressional approval eliminates capital gains taxes on investments held by certain small businesses for more than five years. This provision was part of a small business jobs act signed by Mr. Obama in September. The provision expires at the end of this year and the White House will ask Congress to make it permanent.

“Permanent tax reductions are certainly encouraging for first time investors”, said Achim Neumann, President of Neumann Associates, a New Jersey Business Brokerage firm. “Many of our first time buyers are searching for alternate ways to reduce the risk for their investments and minimize the risk/reward ratio.”

However, until the fine print of Mr. Obama’s proposal is made clear, many investors will not endorse the policy yet. Ultimately, the policy must be approved by Congress before becoming law. One concern is that a permanent capital-gains tax break doesn’t go far enough to trigger enough investments to jumpstart the economy. Thus, the SBA plans to host a series of roundtable discussions with entrepreneurs to find out which government burdens are most stifling to growing firms.

“Since SBA financing is a major source of funding for business purchases, an intensive dialog between the SBA and individual business owners can only help,” said Neumann.

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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James Belanger, Business Owner

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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

“Purchasing a business through this firm was a pleasure. Gary was very professional and transparent throughout the entire process. I look forward to working with A Neumann & Associates in the future.”

William Klemens, Buyer

“I utilized A. Neumann & Associates to assist in an M&A process. They are VERY thorough in using their time-tested process to calculate the value of investment opportunities, a process which provided a very detailed explanation for the value of the potential opportunity. Additionally, they also went above and beyond to extend other services including connecting with others who specialize in your industry and can assist with necessary steps including legal and accounting. Highly recommended!”

Edward Lane , Business Owner

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Achim, who explained the process in detail. He had his colleague Gary come to my office 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 when the time comes for me to sell my business for max value. They gave me great insight into the steps I need to take now to get the best deal in the future. I highly recommend this firm to anybody who wants to sell now or down the road. They not only know their stuff, their actually just real nice guys.”

Robert Kardane, Business Owner
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