Neumann

A. Neumann & Associates, LLC Business Valuations In Pennsylvania

Is your business worth 3X sales? Or 2.5X EBITDA? Or what about 2X gross or assets plus one year of sales? The fact is, a single ratio is always wrong! For accurate business valuation Pennsylvania, there are many factors to consider. Still, many business owners make the mistake of using a single ratio which can lead to leaving money on the table after a sale or they value the business to high it will not sell.

A Neumann and Associates with 25 years of experience is a reputation firm that can assist with business valuations Pennsylvania. 3 operations are evaluated during a business valuation, a review of comparative values in SIC Code, review of markets and competitors and weight assets, cash flow and market transaction. Only a certified business valuation from a third party can come up with a true fair market value.

A couple things are critical when obtaining a business valuation in Pennsylvania. First, confidentiality is of upmost importance. Next, it must be a certified business valuation and it must be conducted by a third party. A valuation performed by a party representing the buyer or seller will not be seen as objective or taken serious by the other side in a transaction. Only a third party can provide an objective and accurate true market value.

Now, there are some different methods to determine fair market value. You have an asset based approach using book value and good will. There is also the income based approach which uses the capitalization method and excess earnings. And you also have the market based approach using revenue, discretionary cash flow and normalized EBITDA.

So what drives value in a business valuation Pennsylvania? There are many value drivers, here are a handful: Profitability, consistency of growth, diverse customer base, management information systems, accurate P&L reporting system and attractive facility are all value drivers.

A common questions, is when should a business owner obtain a business valuation? For a business owner looking to sell, a certified business valuation is critical to obtain up front. The requirements for a valuation are 3 years of records, approximate asset listing, a mental summation of benefites and 1.5 hours of uninterrupted time at an offsite location to preserve confidentiality. 

Why is a valuation so important? The buyer will take you serious first. There will be justification for the asking price and the valuation will aid in the buyer obtaining financing. The business valuation Pennsylvania also provides a lot of pre-offer due diligence. Additionally, a valuation is less than 0.5% of a business transaction and reduces potential of seller’s remorse. 

It is estimated that 50% of 7 million business owners will sell in the next 15 years. Of these, 80% are not sold due to poor representation. 75% of business owners actually have no idea how they will exit from their business and most are universally wrong about the value or salability of their business.

A Neumann and Associates Business Broker in New York

As one of the world’s largest commerce centers, New York has a wide variety of international businesses. With Wall Street, Manhattan, the five Burroughs and the surrounding metro area, it is often listed as high as 27 million people. It is also one of the more expensive areas to live not only in the United States but in the entire world. For business owners planning an exit strategy for the New York Business, it is critical to have proper representation. Especially those planning to retire in New York with the high cost of living. It is crucial to have an experienced and respected New York City Business Broker.
Most business owners only experience one business transaction in their entire life. They start a business or maybe inherit a business and lack business transaction experience when they begin to plan their exit. In fact, most business owners have no exit strategy at all. There are some major mistakes that can occur from a poor exit strategy. Business sellers can leave a lot of money on the table, pay way too much in taxes, agree to less than appealing terms and really inhibit themselves from specific goals when selling a business. This is where representation by A Neumann and Associates, experienced and respected New York Business Brokers can be critical.
As a New York Business Broker, A Neumann and Associates can assist from the before the beginning to after the end of a business transaction. First and foremost, confidentiality is a priority. Even well before a business owner decides to sell, they should engage with a business broker. Assessing the current market environment, looking at where the business is at, valuing the worth of the business, assessing strength and weaknesses that can be improved to drive value, etc is a result of engaging with an expert New York Business Broker such as A Neumann and Associates. As a premier New York Business Broker firm, the process starts well before the sale.
After a free confidential consultation, preliminary steps that will eventually form a winning exit strategy begin to take place. A business valuation ahead of time is critical in the process. It not only shows buyers that you are serious but it will evaluate your business on many factors that can become really informative on how to make adjustments and improvements to achieve a higher sales price, more buyer interest and possibly a multiple offer situation. Business valuations also help the buyer secure financing, help determine asking price and reduce the risk of costly mistakes during the business transaction.
A Neumann and Associates assists buyers and sellers every step of the way. With 25 years of industry experience, transaction experience in all kinds of industries and offices nationwide, they have become one of the most well respected New York Business Broker firms in the tri-state area. If you are a business owner in the New York or tri-state area and have questions about the current market, value of your business, curious about where you stand or are interested in a business transaction be it purchase or sale of a business then look no further. A Neumann and Associates offers a free confidential consultation to assist you with all your needs.

A Neumann & Associates New Jersey Business Broker

A Neumann & Associates, with 25+ years of experience is one of the most respected New Jersey business broker firms. Over the years the brokerage has expanded to not just a New Jersey Business Broker but also provide excellent service to New York and Pennsylvania businesses. Our reputation for professionalism and confidentiality has helped us grow into a leader as a tri-state area firm that businesses can count on.

A Neumann Associates has represented a wide variety of New Jersey Businesses as well as NY and PA throughout over 25 years of experience. Services provided include business valuations, assisting with the business transfer process, including selling companies worth millions of dollars and helping business buyers.
Our Selling Advantage starts with Confidentiality which is our first priority. Our outstanding reputation along with our large network allows for exposure of your business to more buyers which can often result in multiple offers to buy your business when selling. All of this without charging upfront fees.

Our Buying Advantage includes our outstanding reputation, our large network and financing contacts that help business buyers secure a business purchase at fair market value. Again Confidentiality always is our first priority and we assist heavily with all due diligence efforts and verify data when needed. Our firm offers a comprehensive set of business services for the valuation and the sale of privately held, mid-market firms.

Representing Business Sellers

For most company owners, selling a business is a once in a lifetime event. In fact, a recent IBBA study suggests that “75% of owners have no idea how they will exit from their business.” When selling a business once a lifetime, it is no surprise that a lack of transactional experience exists and unfortunately this can result in significant errors that the seller can ill afford.

Our firm’s expansive network with over 1000 affiliated Merger & Acquisition professionals and over 100 years of transaction experience provide the best results to potential business sellers. We provide full advisory services from the first step in the process to the final closing and often beyond.

Business Valuations

The first step is a Business valuation, an essential step of attributing a business’ proper value. Our firm urges sellers to have a business valuation by an independent, third party performed prior to sale. In fact, buyers do not consider seller serious if a business valuation has not been completed.
Furthermore, it is strongly recommended to avoid using valuations from “in-house’ valuation departments of business broker firms. There exists a conflict of interest and the business valuation could be considered not as objective as with a third party.
As a New York Business Broker we also can help to facilitate valuations for estate planning, IRS matters, partnership conflicts, financing requirements, etc. We are often contacted by law or accounting firms or other professional firms to assist in this respect.