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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Stuart Zeiff, Seller

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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

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Dennis Frazier

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Douglas DiCeglio
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