We hear the words confidential, secret, private, and non-public all the time in business settings. So much so, that often these important words just sort of blend into the background and their real meaning and intent is lost. Therefore, to appreciate why confidentiality is crucial when selling your business, we first need to start by looking at this magic word – CONFIDENTIAL. Dictionaries define confidential as “intended for or restricted to the use of a particular person, group, or class”, or as “containing information whose unauthorized disclosure could be prejudicial”.  The concept of ..read more

 “By failing to prepare, you are preparing to fail.” – Benjamin Franklin As a business owner, there are many major milestones throughout your history of ownership including buying the business, growing and reaping the financial rewards of satisfying your customers, and ultimately making the decision to sell.  However, this final stage requires a new team to successfully navigate a complex process. Without expert guidance, your odds are against you to maximize the potential of your business value.   In addition to an attorney skilled in M&A transactions, a tax advisor, a ..read more

Is it a great offer? Potentially.  Selling is a once in a lifetime opportunity for most owners, and moving forward at the optimal time and at the best possible price is essential. As a crucial first step, the business owner will want to verify just how great this offer really is. At A. Neumann & Associates, we assure that our client has this information by immediately developing an independent, fair market valuation of the company. However, in addition to determining the company’s fair value, several other important questions will also need to be answered:  If this is a multi-gen ..read more

“You don’t have to see the whole staircase, just take the first step.” – Martin Luther King With 2024 upon us, let’s think about some practical and easy first steps to take that will make your business more efficient, more profitable, and more attractive to buyers when the time comes to sell. Many times, a small business runs on inertia and “the way things have always been done” approach. This may be fine in the short term but is severely lacking in the eyes of potential buyers.  It is critical for all business owners to embrace new resources and new technologies to improve systems within ..read more

Higher Interest rates generally have a negative impact on Mergers & Acquisitions (M&A) deals as most buyers finance a portion of their acquisition of target companies with debt.  In this article, we will outline some of the negative, but also positive outcomes that higher interest rates have on the lower middle M&A market. For one, with debt costs surging, acquisitions become more expensive, having a direct negative impact on return on investment, or “ROI”, for an investor. Remember that most buyers finance a great part of any acquisition, thus, higher interest rates reduce fu ..read more

When it comes time to selling your business, there will be tremendous emphasis on the financials.  There is no doubt that the performance of the company leading up to and during the sale process is a prominent factor – both for proper valuation and structuring the ultimate transaction.  However, strong financial performance alone does not guarantee a successful experience or even an executed deal.  Beyond the numbers and margins, there are some key ingredients that need to be in place to provide peace of mind, efficiency, and a completed sale for the business owner. Without thes ..read more

In the world of mergers and acquisitions (M&A), success hinges on the ability to connect the right buyers with the right sellers. The lack of access that business owners have to a pool of qualified buyers is significant, making it difficult for an owner to get the highest possible price for their company. A professional M&A advisor has access to market data and a large competitive pool of buyers to help owners maximize their exit price. An M&A advisor will take a significant burden off the owner by facilitating all the key activities of the transaction and to allow the owner to sta ..read more

Mergers and acquisitions (M&A) are complex transactions that require careful planning, analysis, and execution. Due diligence is a critical part of the M&A process, as it involves an in-depth examination of the target company’s financial, legal, operational, and other relevant information. Effective communication between the acquiring company and the target company is essential during the due diligence period to ensure a smooth and successful transaction. In this blog, we will discuss the importance of communication during a due diligence process and things to keep in mind. Accuracy of ..read more

Your Certified Public Accountant (CPA) can play an important role in the specialized team assembled to sell your business. An effective team also includes a qualified M&A Advisor, Certified Business Valuation Firm, Transaction Attorney and Lender. While the specific responsibilities of your CPA may vary depending on your unique circumstances and the scope of engagement, these contributions are required during the business sale process: 1. Financial Analysis and Seller Due Diligence: Your CPA can provide a thorough financial analysis of your business, including reviewing financial statement ..read more

Have you heard that at any given time, a business owner knows precisely what his or her business is worth and sells for? This myth does not match reality. The time it takes to sell at a given value depends on factors as diverse as the industry, the size of the business, and the market conditions. The value of the business will be driven by the seller’s financial records, the target market, and the marketing strategy. A major life decision such as selling a business can be both exciting and daunting. Unfortunately, many business sellers make mistakes that cost them money or derail the sale alto ..read more