What Multiple To Use In Valuing A Private Business

    “What is the value of my business" “What is the right multiplier to use” - these are questions we hear time and time again from anxious business owners trying to determine what to expect when selling their business,” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based Mergers & Acquisitions advisory firm  “however, short of putting the business up for sale, there are various alternate means to establi [read more]

    Cash Flow Growth in Uncertain Times

    Without question, these are very uncertain times With further tariffs pending in the China trade providing no clear picture for the macro-economic impact, the outcome of the Brexit negotiations unknown, a changed political environment after the fall’s mid-term election in Washington and a stock market showing signs of wavering with a Federal Bank not quite clear about further rate hikes, it will be difficult to predict business activities in 20 [read more]

    What To Pay An M & A Advisor

    As expected, the issue of fees in M&A transactions is raised quite frequently by clients  “Indeed, selling a business will result in different types of fees and taxes,” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based Mergers & Acquisitions advisory and Business Brokerage firm, “and at the end there are commonly three deductions” First, a seller typically pays an upfront fee for a valuation of [read more]

    Top Five Concerns When Selling

    After countless business owner conversations during the past 15 years, a few common concerns have surfaced again and again  “Indeed, selling a business in New York City or any metropolis can feel overwhelming and be very complicated,” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based Mergers & Acquisitions and Business Brokerage firm, “It’s understandable that business owners have many concerns” Fo [read more]

    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, either the emotion to “do good” by the employees after all their years of service and to establish a legacy for the company, or, more often by the [read more]

    Business Marketing with Impact!

    In developing a marketing campaign for selling a business in Pennsylvania or any other state, 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 There are essentially two approaches: A general marketing approach—to a broad market of potential investors [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 acknowledge and identify its problems, consider changes in management, and develop and implement a problem-solving strategy” What should you focus on to [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 lines How have customer relationships developed Structural changes Are there any supply constraints – now or predicted How difficult is it to attrac [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 that generates a consistent product or service flow for its revenue, with new customers coming through the door every day, it’s a devastating appr [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 exactly the reason many business transfers never close, or ultimately end up in court” says Achim Neumann, President, A Neumann & Associates, LLC, a New J [read more]