Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

September 10, 2010

Too much time to close a deal?

By Joseph Eneldas

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The one question sellers consistently raise is how long will it take to close a deal once a business valuation has been completed and there is an agreed upon offer in place?

As the leading business broker in NJ, we typically rephrase the question; will there be “buyer’s remorse” and is the business buyer truly entrepreneurial enough to absorb the challenges and risks in a business – with the first ones typically facing her/him during the due diligence process.

More often than not, entrepreneurial skills are presumed to be ingrained with such business owner attitudes like ‘focused, visionary, and risk assuming’ – to mention a few. But such traits also apply to Fortune 500 executives or successful professionals. So where is the difference?

In general, buying a small or mid-sized business for sale will result in acquiring limited resources, specifically, as it relates to capital and human resources or talent. It’s the task of the entrepreneur to expand these resources by attracting suitable and skilled talent to gain a competitive advantage in his field. By gaining such an advantage, the business owner will ultimately in a position to succeed and consistently grow the business.

But can only the “born entrepreneur” succeed in this venture? Absolutely not, as long-time NJ business brokers we’ve learned that excellent analytical skills, good ‘people skills’, and a good, solid understanding of the business’ service and products– will easily out-weight other factors.

This then leads us back to the question, how long of does it take to conduct a proper business valuation and close a deal, and will there be buyer’s remorse? As a rule of thumb, if the buyer had successfully operated a business in the past, she/he is much more likely to overcome hurdles in the due diligence process by looking at the “big picture”.

However, if the buyer recently left a large corporate environment – with all the benefits and securities of a large corporation – or if the buyer was not successful in his previous venture(s)– then the likelihood that challenges in the due diligence process will trip her/him up are significantly larger.

By Achim Neumann

President

A Neumann & Associates, LLC

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Edited by Repaz Marketing

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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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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