Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

December 12, 2016

Too Old To Start A Business?

By Jeremy Albelda

selling-the-family-business1

A recent article in the Wall Street Journal caught our eye, it read “Americans in their 50s and 60s make up a growing share of entrepreneurs”. According to one study mentioned in the article, 24% of new businesses started in 2015 were founded by professionals older than 55 years, whereas that percentage was only 15% ten years prior. In contrast, only 25% of the businesses started in 2015 were set up by entrepreneurs less than 34 years of age, compared to the last decade.

“These are indeed trends that are fully reflected in our M&A advisory activities,” says Achim Neumann, President, A Neumann & Associates, a New Jersey based M&A advisor and business brokerage firm. “We have increasingly seen ‘older’ professionals contact us about buying a business.” What drives this trend?

First and foremost, seasoned entrepreneurs have more experience – and patience – in starting a new business. This is an important quality in the start-up phase of a business, as this period confronts the new owner with new and unchartered territory. The demand to formulate new policies and to hire the right team for the business are things that, normally, someone with a few more years under their belt are more equipped to work through. Experience gained in previous business ventures goes a long way in resolving these challenges, whereas patience and realistic expectations only further contribute to success.

Secondly, even though such seasoned entrepreneurs often dip into their nest egg, they typically have more financial resources available than younger entrepreneurs – funds needed to weather the undeniable initial financial challenges a new business – or a newly acquired business – brings.

“Our firm often helps new entrepreneurs to access their 401k savings and also points them to the right lending sources,” says Neumann, “in order to ensure sufficient capital available to succeed in the new venture.”

Thirdly, the demographic trend towards an aging population – often confronted with the ‘empty nest’ syndrome at home – has produced many talented and experienced entrepreneurs.  The sheer number of individuals in this growing demographic will shift entrepreneurship to more seasoned individuals.

Interestingly, the aforementioned article makes a few references to the actual motivation of such experienced entrepreneurs to start a new business, and the consensus is that monetary rewards are not the primary driving factor.

Rather, it’s the drive for independence – the quintessential force driving most entrepreneurs – no matter the age.

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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