Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

April 8, 2018

Selling Your Business – The Top Reasons to Hire An Advisor

By Jeremy Albelda

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‘I know the value of my business and I have three buyers knocking on my door each week, I will sell my business on my own (and save the commissions)’ – statements often expressed by business sellers.

“As the old adage goes, ‘you don’t know, what you don’t know’ – this is exactly the reason many business transfers never close, or ultimately end up in court” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based Mergers & Acquisitions Advisory firm, “unfortunately, all too often, business sellers are not familiar at all with all the nuances and challenges of a business sale (while still being excellent and successful business operators).”

Here is a list of the top fifteen reasons why a business owner should hire a professional M&A Advisor:

  1. Professional cash flow recasting with a reconciliation of tax returns vs. financial statements and a compilation of all operational business information in an organized fashion;
  2. Establishing a Fair Market Value by way of an accredited third-party business valuation firm – defining the best price and terms before going to market;
  3. To maximize net receipts, M&A advisors can recommend additional external professional advisors – transaction attorneys, tax lawyers, CPAs, estate planers, etc.;
  4. Advisors prepare a professional investor package with a winning marketing strategy;
  5. Most business buyers start with an M&A Advisor / business brokers in their searches;
  6. A deep advisor’s database of buyers and investors will attract more than one offer;
  7. Confidentiality preservation – pre-qualification of potential buyers without divulging the name/location of the business for sale;
  8. Advisors can initiate contact with likely purchasers without releasing the name of the business – with the knowledge of what/when to show buyers. Sellers do not have to fear adverse effects of a premature sale disclosure to key employees and lenders;
  9. Minimize interference with owner’s ‘running of the business’ as most owners do not have time to sell the business (or the business’ performance will dramatically decline);
  10. To avoid owner’s adversarial positioning in the negotiation process with buyer;
  11. Advisor will coach sellers to answer buyers’ questions and concerns not setting red flags;
  12. Broker depersonalizes negotiations and takes seller out of ‘negotiation front lines’;
  13. Advisors help to evaluate purchase offers and reduce frustration during offering and sales process – most deals die numerous times, good advisors know how to revive them;
  14. Advisors help buyers to obtain bank financing – for cash to be at the closing table!
  15. Compensation is commission based upon a sale – what does a seller have to lose?

In sum, professional M&A advisors and Business Brokers know how to sell businesses. Most often, their objectives – by way of a back-end fee – are completely aligned with the objectives of a business owner in maximizing the value and terms of a transaction.

For that reason, it is very sensible to bring a professional M&A advisor in to develop a transaction as much as a business owner would hire a CPA to perform the tax planning or an attorney to handle legal matters – not doing so will simply translate into a performance decline of the business (aka a lower price) with a sub-par deal at the end.

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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

“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

“A Neumann & Associates is the only business broker I would use or consult with. They have assisted with 3 business sales over the past 15 years with me. They are honest and sincere and have always performed better than my expectations. They are the only one i would use for the sales of my businesses.”

James Belanger, Business Owner

“I wanted to take a second to commend the exemplary customer service from both you [Karin Neumann] and Mr. Valentino. It’s both a rarity in the industry, and very much appreciated.”

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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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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