Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

May 21, 2019

Top Benefits of Getting a Business Valuation in New Jersey

By Achim Neumann

Performing a business valuation is essentially a check box that details the figures and information on the actual value or worth of your company in terms of income, assets, and your competition.

If you are based in New Jersey, and haven’t performed a business valuation in NJ in the previous 12 months, then you should contact a business valuation professional as soon as possible. The outcome of getting an independent business valuation is crucial for you to know your current position, not just with regards to your competition but also where you are standing in the market right now.

It is recommended that an independent business valuation in New Jersey should be conducted yearly in order to track growth. This is especially true with small entrepreneurs who rely on their business as their livelihood. The close link between their own personal wealth and to that of their company means they should always be on top of their business’ valuation.

Here are the top benefits of getting a business valuation in New Jersey:

  1. Know Your Company’s True Value — You may think you know your business, but you would be surprised by how much you are missing out in terms of the asset calculation, bank account balances, expenses, future returns, etc.
  2. Should You Decide to Sell — If somewhere down the line you decide to sell your business, the business valuation would be a crucial document for the prospective buyer. This will give you a baseline for negotiations. Nevertheless, the potential buyer will conduct their own business valuation and both parties go from there, but showing yearly business valuations show you are, and have been diligent with the management of your company.
  3. Get On Top of Your Company’s Assets — In a successful business, nobody likes surprises. Getting all the facts is key to anticipate possible shifts in the market, personnel, and opportunities. Knowing all your assets is also important for insurance purposes. In the same vein, your insurer likes actual figures and not just estimates in order to come up with the right number for coverage.
  4. Make it Easier for Your Investors — When you are trying to sell your company to potential investors, you want to impress them with your preparedness. The first thing that the investor will look at is an independent business valuation from a certified professional. The valuation will also include the projected growth as a result of a funding infusion.
  5. Mergers and Acquisitions  — A business valuation will enable you to identify the key growth indicators for your company. During mergers and acquisitions, the interested buyer would want to know the actual value of your business, including its assets and projected growth. Knowing the actual value would put you in a better position to negotiate for the best terms. You should understand that the potential buyer would quote the smallest number as possible. If you have no facts in hand, you might be persuaded into selling the company for much less than it’s actually worth.

Conclusion

There are three main approaches to a business valuation. These are comparable analysis, discounted cash flow method, and precedent transactions analysis. For smaller companies in New Jersey, do at least one or two of these methods if your budget is limited. The important thing, however, is to make the business valuation a regular part of your annual routine.

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A Neumann & Associates, LLC is a professional M&A and business broker firm having assisted business owners and buyers in the accredited business valuation and business transfer process through its affiliations for over 30 years. With an A+ BBB rating, the company has senior trusted professionals with a deep knowledge base in multiple field offices all along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or info@neumannassociates.com

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Client Testimonials

“ I appreciate your diligent approach to screening buyers and sellers as well as the high quality CIM that you produce.”

Andrey O, Investor

“Finally enjoying retirement after recently selling my business using the services of A Neumann & Associates. Joe Oddo provided the conduit to a successful transaction. Joe knew when to inject input and when to simply listen and allow the buyers to vent, step back and regroup. The outcome met our expectations and got us to the finish line, which included my staying with the company six months in order for the buyers to get their footing and keep our workforce in the loop. He helped at every step by providing his expert guidance & resources. Thank you!”

Emily Parker Myers, Co-Owner - Myers McRae

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

Double Diamond

“Used A Neumann & Associates to sale my business. could not imagine having done it with out the patience and experience Gary provided. Thanks Gary,”

Dennis Frazier

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi
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If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

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