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]

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]

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 t... [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 Neum... [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 Neu... [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,” ... [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 f... [read more]

Save The Commissions – Forget the Advisor!

Not surprisingly, the value of an M&A Advisor or business broker is often questioned. The intuitive reaction of a business owner is to question the commissions involved in selling a business and to try to avoid such “cost items.” “Rarely, though, does a business owner take into account t... [read more]