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

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Client Testimonials

“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

“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
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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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