Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

August 3, 2023

The CPA’s Role In Selling A Business

By Dave Patterson

Your Certified Public Accountant (CPA) can play an important role in the specialized team assembled to sell your business. An effective team also includes a qualified M&A Advisor, Certified Business Valuation Firm, Transaction Attorney and Lender. While the specific responsibilities of your CPA may vary depending on your unique circumstances and the scope of engagement, these contributions are required during the business sale process:

1. Financial Analysis and Seller Due Diligence: Your CPA can provide a thorough financial analysis of your business, including reviewing financial statements, examining financial records, tax compliance, contracts, liabilities, and other relevant financial information. They can help you understand the financial health of your business and identify potential issues or concerns and allow you to address them proactively.

2. Financial Documentation: Throughout the sales process, there are various financial documents to prepare and review, such as profit and loss statements, balance sheets, income statements, cash flow statements, and financial projections. Your CPA can help compile and review these documents to ensure accuracy and consistency and present the financial information in a clear and compelling manner to potential buyers.

3. Valuation Assistance: Your CPA will work closely with business valuation experts to determine the fair market value of your business. They can provide critical financial data and insights to support the valuation process, ensuring that the asking price is reasonable and based on accurate financial information.

4. Financial Planning and Tax Optimization: Selling a business often has significant tax implications. Your CPA can help develop a tax strategy to optimize the financial outcome of the sale. They can analyze various tax scenarios, advise on structuring the transaction to minimize tax liabilities, and provide guidance on potential tax incentives or exemptions available that may apply to your situation.

5. Exit Planning: Your CPA can assist in developing an exit strategy that aligns with your long-term financial goals. They can help you evaluate the financial implications of different exit options, such as an outright sale, merger, acquisition, or succession plan.

6. Buyer Due Diligence Preparation: When selling a business, potential buyers typically conduct due diligence to assess the company’s financial and operational aspects. Your CPA can assist in preparing the necessary financial documents, records, and disclosures required for due diligence. They can ensure that the financial information provided is accurate, complete, and presented in a way that facilitates a smooth due diligence process.

7. Deal Structuring and Negotiations: Your CPA can collaborate with other members of your sales team, such as attorneys or business brokers, to help structure the deal. They can provide financial insights on various deal structures, such as asset sales or stock sales, and analyze the potential financial impact of different negotiation points. Your CPA’s input can be valuable in ensuring that the financial terms align with your goals and interests.

8. Post-Sale Transition and Tax Compliance: After the sale, your CPA can guide you through the financial transition, ensuring a smooth handover of financial records and helping you comply with any tax obligations resulting from the transaction.

Remember, the specific role your CPA plays in the team assembled to sell your business will depend on your preferences, the complexity of the transaction, and the expertise of your CPA. It’s essential to communicate your expectations clearly and involve your CPA from the early stages of the sales process to maximize their contribution.

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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