Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

January 16, 2017

The ABCs Of Selling A Business

By Jeremy Albelda

selling-a-business-directly

After years of sweat equity, careful investments, fighting with banks and government regulations, you’ve built your business into a successful venture.  However, for whatever reason, it is time to move on.  There is a litany of methods to divest your business; however, the most popular way to recover your years of hard work is to simply sell it!  

Did I say “simply”?  With lawyers, banks, buyers, contracts, due-diligence, marketing, accountants and post selling planning, etc., it is an arduous, time consuming task.  That is why getting a competent M&A Adviser who has experience, funding options, contractual department teams, buyer vetting and marketing expertise is an important step in maximizing value and saving transaction time, while you focus on running your business and keeping it valuable!

A proper value for your business must be established.  Too high and the business does not sell, too low, you leave money on the table.  A few business owners rely on their CPA to do the valuation; however, this is always an undesirable outcome.  The most obvious reason not to use your CPA is that he/she is not looked upon as an independent contractor or accepted by lenders / SBA.  This means further evaluations or appraisals need to be done by the buyer and/or seller before banks, SBA or outside investors will provide loans for funding for the buyer.  This delays the sale and you may lose the sale, as it gives the buyer more time to consider other opportunities.  Secondly, the CPA most likely will not know the competitive value of your business in your marketplace – resulting in an erroneous asking price.  Thirdly, the CPA may not do the necessary adjustments for expenses that need to be added back into the business.  Recasting your business is always the proper way to add value and a higher selling price.  After the agreed upon value is established and you decide to sell; an Engagement Contract between the seller and advisor is executed.  The broker then creates with the buyer’s help, a non-disclosing business outline and helps you seek professional tax and financial planning.

Business marketing provides maximum exposure to buyers, often creating competitive offers.  This is done in a way that will expose your business to prospective buyers while maintaining complete confidentiality.  Competent M&A advisors and business brokers will utilize targeted websites, contact previous buyers of your type of business, promote with other affiliates, newsletters, mailings, etc., to get the word out confidentially, while providing timely progress feedback.  After buyers have been identified, the advisor will pre-qualify them (meaning that they have the business expertise and financial backing to do the deal), create a Confidential Memorandum/Prospectus to convey the details of your business to the buyer, arrange buyer/seller meetings and a confidential site visit.  If all goes well, the advisor will prepare the Offer to Purchase.

Closing the deal means just that.  The advisor needs to act as the Orchestra Director to bring all parties together and maintain the deal execution time line.  This includes arranging due-diligence, supporting the buyer in the loan process, arranging license transfers, financial planning for the seller, answering questions, dealing with attorneys and representing the seller in every step of the process.

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

Leave a Reply

Your email address will not be published. Required fields are marked *

Any questions? Please contact us at 732-872-6777
Call Now

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
view all testimonials

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.

call us now
Contact Us for a Free, Confidential Consultation

Experienced M&A Advisors available

Full Name
Email Address
Phone Number
Message