Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

August 1, 2012

Slow But Continued Growth

By Joseph Eneldas

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The summer months have always been somewhat slow in the business brokerage industry. Buyers and sellers prefer the “cool” environment of the beach and parks over the “hot“ transfer of businesses.

“We  have had a significant number of business valuations performed in the second quarter and the beginning of the third quarter, preparing those businesses for market entrance,” says Achim Neumann, President, A Neumann & Associates, New Jersey. “As of today, we have more than 25 businesses undergoing valuations, with many of them targeted to enter the market by mid-September.”

“Indeed, we might finally get to a point where we can start meeting the overwhelming number of inquiries we’ve received from potential buyers,” observed Gary Herviou, Director Marketing, Central New Jersey. “This high demand has been a trend in all of our New Jersey, New York and Pennsylvania offices for some time now.”

The shift in activity could predict a ripple of relief for business buyers that could start a larger wave.  However, a recent article in The Wall Street Journal, July 17, 2012, titled ‘Fewer Small Firms Changing Hands’ references the lack of activity surrounding businesses selling for $150,000 or less.

“Quite frankly, our firm primarily does transactions exceeding one to two million dollars in transaction value,” notes Mike Gersten, Director Marketing, North New Jersey-Southern New York.  “So our transaction volume really does not confirm the premise of the article. Our number of transactions continues to be constrained by too few businesses for sale.”

According to most analysts, since the sharp economic downturn in 2008, the ratio of business buyers to sellers continues to remain unbalanced in the middle market space, often in excess of a 3 to 1 ratio. One explanation is that more buyers have entered the market since then due to lack of alternative investment opportunities. As evidence of this, A Neumann & Associates currently has three deals pending, with multiple buyers and investors reviewing each deal.

“Additionally, we have seen an increasing number of owners willing to extend financing to qualified buyers, combined with available acquisition funding we can provide through numerous banks,” says Neumann. “Taking this into account, and with valuations remaining a leading indicator for us, we could see a very strong fourth quarter in 2012 and early  2013.”


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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