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, 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 A specific marketing campaign— [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]

    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, a New Jersey based Mergers & Acquisitions Advisory firm, “unfortunately, all too often, business sellers do not recognize the implication of such de [read more]

    Post-Closing Business Seller Liabilities When Transferring A Company

    Approximately 8 out of 10 businesses fail within the first 18 months; only 4% make it to $1M in revenue and only 04% to $10M, according to Forbes Thus, for any business owner having succeeded among the 500,000+ businesses started each year and come to the point where they are ready to sell is an impressive feat But, while managing and then transferring a business is a matter in itself, the life for the owner post-closing is quite a differe [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 & Associates, LLC, a leading New Jersey-based mergers & acquisitions and business brokerage firm, “as a business seller fully addressing these investo [read more]

    Poor Legal & Accounting Advice

    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 & acquisitions and business brokerage firm, “and a well-functioning interaction between the three professions will guarantee the best outcome for all parties involved” [read more]