Reevaluating A Business
Regional Managers
A Neumann & Associates, a New Jersey-based Mergers & Acquisitions and Business Brokerage firm discusses the Great Resignation and its impact on the marketplace.
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.”
ATLANTIC HIGHLANDS, NJ, US, July 26, 2022 /EINPresswire.com/ -- A Neumann & Associates, LLC, a New Jersey-based Mergers & Acquisitions and Business Brokerage firm, discusses the Great Resignation and its impact on the marketplace.— Douglas DiCeglio
By now we all know how the pandemic that necessitated employees working from home sparked the great resignation. A huge portion of the workforce became aware of the lifestyle benefits that accompanied a reduced or eliminated commute to the office.
The pandemic triggered a nationwide reevaluation of most every individual’s work-life balance. It has impacted employees and employers alike and is not only about one’s ability to work from home.
Ultimately, whenever a business owner decides a fundamental change is desired, the first question will always be: Is now the right time to sell my business? If an owner has done everything to keep the business current, but no longer has that energy or desire; If they want to spend more quality time with their family; If they have accomplished everything, they set out to do, then the answer, on a personal level, clearly can be ‘yes’.
Prior to beginning the marketing process, a fair market valuation of the business must be established, and an offering price agreed upon. Over the years business owners will have worked to minimize reported annual income, thereby limiting taxes due. As part of the valuation process, we recast the company’s financials, making sure that any depreciated assets such as vehicles and machinery are included at current market value. Also, expenses that current owners have incurred, but a new buyer may not, must be added back so that maximum cash flow is exhibited. Based on such true cash flow of the business, we will then engage an independent valuation firm that will establish a weighted, eight-point fair market valuation for the company.
Thereafter, the marketing documents, consisting of blind profile and confidential memorandum, will be developed by our firm. All such marketing documents have to be approved by the business seller, with confidentiality being a key component.
The time required for a business transfer, covering the introduction, valuation, marketing and closing phases usually ranges from 7 to 12 months. We have successfully managed more than 200 business transfers over the last 20 years and handle the entire process, including providing referrals for bank lenders, transaction attorneys and CPAs, so that owners can focus on what they do best: running their businesses.
With investors still far out-numbering sellers by a large margin, and with nobody being able to predict how fast the increase in interest rates, higher taxes and less equity will be negatively impacting the Mergers & Acquisition markets. There is no better time than now to begin the selling process, and no better team to engage than the one found at A. Neumann & Associates, LLC.
Achim Neumann
POB 500
+732-872-6777
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A Lifestyle Change
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