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 members, if any at all So why is confidentiality so important The knowledge about a pending business sale has an impact on vendors, employees, banks, la [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 being used for buying a business This has greatly expanded the market for business buyers in recent years despite the change in demographics for bus [read more]

    Is 2017 The Year to Sell?

    If one can go by election promises, the new pro-business administration - supported by a House and Senate majority - should usher in a climate of less regulation, lower taxes and modest inflation Despite all the uncertainty in the US Economy, modest earnings, and a slowdown of the Global Economy, 2017 should see an upswing of business growth and M&A activity - from the slowdown of M&A activities in 2016 Primary drivers should be busine [read more]

    The ABCs Of Selling A Business

    After years of sweat equity, careful investments, fighting with banks and government regulations, you've built your business into a successful venture  However, for whatever reason, it is time to move on  There is a litany of methods to divest your business; however, the most popular way to recover your years of hard work is to simply sell it!   Did I say “simply”  With lawyers, banks, buyers, contracts, due-diligence, marketing, accou [read more]

    Too Old To Start A Business?

    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, c [read more]

    A Good Business Buyer Introduction

    Regardless of how successful a business is managed, business owners often express quite a bit of anxiety when meeting the first potential buyer for their business “There is no question, these folks are quite nervous before the first meeting, as they don’t know what to expect,” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based M&A advisor and business brokerage firm, “and it often takes the knowledge [read more]

    Badly Overpriced Businesses

      Some sellers prefer a strategy of initiallyoverpricing a business, then backing down the pricing curve until the market responds to a given asking price “Everybody is familiar with the saying ‘We can always reduce the price but can never go up,’” says Achim Neumann, President, A Neumann & Associates, LLC, a New Jersey based M&A and business brokerage firm, “and following that logic, some owners like to start wit [read more]

    Deals That Fall Apart

      Once an investor has reviewed the prospectus and met with the business owner, and both parties have agreed upon an offer to purchase, the deal is 90% done, right Wrong! “We frequently see business owners and business buyers feeling somewhat relieved once an offer has been agreed upon,” says Achim Neumann, President of A Neumann & Associates, a New Jersey based mergers & acquisitions and business brokerage firm  “Ho [read more]

    Due Diligence – Truly a Challenge?

    By Achim Neumann “Due diligence” is commonly referred to as the process of verifying information that was previously presented in preparation for the sale of a business  Unlike buying a car or house, justifying the price for acquiring a business entity requires financial documentation to verify the true cash flow and to support a full “quality of earnings assessment”  Typically, it takes the cooperation of various parties, including [read more]

    The Acquisition Lender – The Party With Most Impact On A Business Sale

    There are many situations in which a business buyer and business owner reach an agreement to transfer a business, but ultimately fail to have the proper acquisition funding in place to actually close the deal   “We frequently experience scenarios where a business buyer is motivated to move full steam ahead with an acquisition once he has clinched a deal with a business seller, only to recognize that several major hurdles are still ah [read more]