ESOP as alternate exit strategy

Quite frequently, we are confronted by retiring business owners with the question, if it’s not more favorable to use an ESOP (Employee Stock Ownership Plan) as an exit vehicle instead of selling outright to an investor. The aforementioned question is often motivated by one of two aspects, namely, ... [read more]

Business Marketing with Impact!

In developing a marketing campaign for selling a business, the effectiveness of a broad campaign versus the risk of breach of confidentiality must be carefully weighted. The M&A advisor needs to analyze the potential target market for the business to be sold to and formulate a strategy around it... [read more]

What Drives Value Creation in a Turnaround Situation

Is your company facing a turnaround?  To answer that question, perhaps we should first define a turnaround.  According to Investopedia, “A turnaround is the financial recovery of a company that has been performing poorly for an extended period of time. To effect a turnaround, a company must ackn... [read more]

A Buyer’s Top Five Mistakes When Buying a Business

Over the years, we have seen certain buy-side mistakes that recur again and again. Here is a list of some of the more common problems seen over the years. #1 – Insufficient Information Verification Important information about the business should be verified, in particular as it relates to trend li... [read more]

Not A Penny More!

“Not a penny more” or “this is the percentage commission I’m willing to pay out, and not a point more!”- familiar words every business owner has heard in the past from one of the business’ customers. What do you do? Whereas this negotiation approach might be viable in an ongoing business... [read more]

Selling Your Business – The Top Reasons to Hire An Advisor

‘I know the value of my business and I have three buyers knocking on my door each week, I will sell my business on my own (and save the commissions)’ – statements often expressed by business sellers. “As the old adage goes, ‘you don’t know, what you don’t know’ – this is exactl... [read more]

The Industry Specialist – A Poor Choice

“Only an industry specialist in the Mergers & Acquisition field can sell our company, nobody else,” – sentiments quite often expressed by business sellers. “Nothing can be further from the truth than such statements,” says Achim Neumann, President, A Neumann & Associates, LLC, ... [read more]

Post-Closing Business Seller Liabilities When Transferring A Company

Image from Alpha Stock Images CC license Approximately 8 out of 10 businesses fail within the first 18 months; only 4% make it to $1M in revenue and only 0.4% to $10M, according to Forbes. Thus, for any business owner having succeeded among the 500,000+ businesses started each year and come to the p... [read more]

The Three Most Important Aspects Business Buyers Seek

Assuming a particular industry has been pre-selected, there are several criteria that an investor is seeking when evaluating various businesses to purchase within that industry. “It is important for a business seller to know these criteria” says Achim Neumann, President, A Neumann & Associa... [read more]

Poor Legal & Accounting Advice

OLYMPUS DIGITAL CAMERA A typical sale of a business is not simply facilitated by a business broker or M&A advisor. “As a matter of fact, a successful transfer is always a team approach” says Achim Neumann, President, A Neumann & Associates, LLC, a leading New Jersey-based mergers & a... [read more]

Unmotivated Business Sellers

What constitutes a motivated seller? The common perception is that ‘seller motivation’ translates into ‘willingness to reduce price’ whereas in reality, nothing could be further from the truth. “There is an old mantra in our industry: no motivation – no deal,” says Achim Neumann, Presi... [read more]

Enough Approaches to Valuing A Business

image by Nick Youngson  “One of the most discussed aspects of selling a business is undoubtedly the business valuation and the preparations needed to make the transaction actually happen, “says Achim Neumann, President, A Neumann & associates, LLC, a New Jersey based M&A advisor and bus... [read more]

The Top Three Mistakes Mid-Sized Business Owners Make

  Running a mid-sized business requires attention to many different facets, with some being more important than other ones.  “Within the course of our business, we conduct business valuations for approximately 150 to 250 companies each year across a wide spectrum of the economy,” says Achi... [read more]

Is Confidentiality Even Relevant in Selling a Business?

Transactions in small to mid-sized businesses must be kept confidential. In particular, every effort must be undertaken to keep a pending sale unknown to competitors.  But even the circle of employees in the need-to-know realm should be limited to an absolute minimum of the most trusted team member... [read more]

What Makes Business Buyers Walk – Out?

(Excerpt of the forthcoming book ‘The Road Beyond’) Recently, many buyers with strong résumés in the corporate environment have come into the business-buying market. These buyers often have significant IRA or 401k accounts that can be dissolved tax free under current IRS rules, with the funds ... [read more]