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

“ I appreciate your diligent approach to screening buyers and sellers as well as the high quality CIM that you produce.”

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

“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
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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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