Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

July 10, 2017

Valuation On-Hand – What Does A Business Owner Need An Advisor For To Sell The Business?

By Jeremy Albelda


“At times, after we have completed a business valuation, a business owner feels there is no need for an advisor anymore in selling his or her business,” says Achim Neumann, President, A Neumann & Associates, LLC, a leading New Jersey-based mergers & acquisitions and business brokerage firm. “As a matter of fact, we have seen the business owner not able to wait to present his company’s valuation report to the (perceived) buyer of his choice”. But what happens then? Very little!

Typically, a valuation is only a minor part of the business transfer process, although very often the most important one. Once the valuation is completed, the advisor should support a business owner in preparing the business for a sale by way of the respective marketing documents, specifically, developing a blind profile and a full prospectus or confidential memorandum. Such preparation includes assembling all accounting records, checking the proper financial presentation, and establishing a coherent narrative about the business, especially, its competitive advantages and growth prospects.

How do these documents differentiate themselves from a pure valuation report? Most often, the valuation report does not emphasize the advantages and disadvantages of the business, the competitive advantage the owner has developed over the years, and most importantly, the valuation report lacks the growth perspectives of the operations. Every investor wants to learn about these, in particular, how to grow the business – no buyer is purchasing a business for its status quo. In sum, a good advisor will compose an attractive investor package for the seller – enticing potential investors to review such and to make a full price offer.

Often, marketing documents are poorly prepared – missing key information such as ownership structure, key personnel or market position. Without a properly prepared marketing package, the seller will not leave a “good first impression” – immediately resulting in an investor to heavily discount the business acquisition.

Another important step in the business sale process includes reaching out to multiple investors. “The old saying in our trade is, that one investor is no investor, “ says Neumann. If a business owner presents the valuation to only one buyer, such buyer will take advantage of the situation and wear the business owner out.

Reaching multiple buyers needs to be done in a non-divulging way with confidentiality preserved. Said investors need to be pre-qualified – often in a somewhat adversarial process that should be left to the (third party) advisor rather than to the business owner as the principal who needs to work together with the buyer in transitioning the business after a deal closing.

Finally, in the negotiation phase the advisor will act as a “relationship buffer” addressing both parties’ concerns to find common ground. The involvement of the advisor affords the parties not to be on the “front line” when being confronted by demands by the opposing party.

One common saying is “Good advice does not have to be expensive but bad advice will cost a fortune.”  This is nowhere more applicable than in the world of mergers & acquisitions and business brokerage where savings of a few commission percentage points can easily translate into huge declines in deal values.

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

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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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