“Few Owners These Days Can Sell Their Firm” … We borrowed this headline from a recent Wall Street Journal article (March 8, 2012), as the essay touched upon some interesting issues that we consistently experience. However, we will modify it to “Few Owners These Days Can Sell Their Firm– Without Realistic Expectations”
“Half of the success in closing a deal can be attributed to the expectations of the seller,” says Achim Neumann, President, A Neumann and Associates, New Jersey. ”We try to prepare sellers, educating them about the many aspects of a deal, however many are not willing to evaluate their situations realistically,” explained Neumann.
“We have had sellers whose business had only a single account, expecting full up-front cash payment, or sellers with dramatically increasing accounts receivables demanding full reimbursement for overdue billing.”
“Essentially, a properly prepared valuation remains the most solid foundation when selling a business,” explains Gary Herviou, Director Marketing, Central New Jersey. “Without the recasting and the valuation, an owner can simply not establish a baseline for a negotiation position.”
Recognizing the importance of such appraisals, A Neumann & Associates will ‘give back’ to their clients with a high-value service– a Business Evaluation Consultation, at no cost to the business owner or buyer. Under the auspices of the company’s professionals located in three offices across New Jersey, New York and Pennsylvania, each office will provide a complimentary 30-minute preliminary valuation for up to five clients, on a first come, first serve basis.
“This is an excellent way to ascertain a preliminary value range,” says Andre Dubbeling, Director Marketing, South Jersey. “A seller who is still pondering whether or not to sell, can obtain some early decision guidance.”
With over 20 years of experience, the company has learned that these consultations have a very high value and are a seamless way to move a business owner’s objectives one step closer to a goal. Quite often, sellers simply have pushed the retirement and business transfer process out too long, and have not taken the actions that a profitable business needs to take in order to survive.
“As a matter of fact, a free value estimate will not only be beneficial for business owners, but also for professionals like attorneys and CPAs,” adds Michael Gersten, Director Marketing, North Jersey. “As well, it will help professionals with clients that are not sure about what to do next, to extend their service spectrum at no cost”
Each complimentary 30-minute Business Evaluation Consultation includes a market sector evaluation, a business appraisal estimate and a market opportunity indication, supported by a Q&A session to address all questions with respect to the transfer process.
Beyond the assessment of the value range for a business, the session will address such issues as: seller financing, financing collateral, buyer’s acquisition funding, and expected business transfer periods.