Retail analysis About Us Contact Us PRIVACY POLICY TERMS OF SERVICE Pennsylvania A. Neumann & Associates, LLC Business Valuations In Pennsylvania admin Retail April 28, 2017Associates, Business, Neumann, Pennsylvania, Valuations 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. Buying & Selling Business In Pennsylvania admin Retail April 19, 2017Business, buying, Pennsylvania, Selling Neumann and Associates Inc has long been a reputable presence in the mergers and acquisitions industries in New Jersey. With over 25 years of experience and offices nationwide, the firm has expanded to cover the tri-state area. As Pennsylvania Business Brokers, A Neumann and Associates is committed to provide excellent service when it comes to valuation of a business, drivers that influence value, buying a business, selling a business, exit strategy planning, tax considerations and everything with business transactions and preparation for when that day comes. As a respected Pennsylvania Business Broker, It all starts with confidentiality. It is critical for internal and external reasons to keep everything confidential in any exit strategy planning and business transaction. For any business sale, obtaining a third party business valuation is crucial. Pennsylvania Business Brokers have a responsibility to represent their clients best interest. With that in mind, you can probably imagine how a party representing a seller could inflate a business valuation. Similarly with a party representing a business buyer, a business valuation could come in much below true market value. These can easily be handled by a third party business valuation. This third party has no bias towards the seller or to the buyer and can use a great deal of value drivers, factors and facts to produce a certified business valuation that represents true market value in the market where the business resides and at that time. Why a business valuation up front? There are a lot of advantages. First, it shows the buyer that you are serious. Many buyers do not take a seller serious without a third party business valuation. A savvy practice is to have a business valuation conducted well before promoting the business for sale in order to assess strengths and weaknesses. Armed with this information, a business seller can make adjustments that can drastically impact value and ability to sell their business. In addition, a business valuation helps when setting an asking price, it is critical during the financing process for the buyer and has many more advantages. Huge risks such as leaving a great deal of money on the table on a business transaction can all be mitigated by a certified business valuation up front. Not only does A Neumann and Associates, a Pennsylvania Business Broker, make confidentiality a priority, the firm also assists with the business valuation process. Once true market value is established, the exit planning proceeds to include tax considerations, marketing, terms and specific goals for the seller. It is true that obtaining the highest sales price for the business is not always the best for the seller. When you consider tax considerations and specific seller goals, the sales price and terms of the business transaction can change dramatically which can be a huge win for the seller and the buyer. The fact that most business owners only go through one business transaction in a lifetime makes it critical to have the best representation. That is where A Neumann and Associates come in as one of the most well respected Pennsylvania Business Broker. The professional marketing directors are more than happy to provide a free confidential consultation to discuss the current market environment, business valuation, where you and your business stand, exit strategy planning and everything that is included with a business transaction. Business Valuation In Pennsylvania admin Retail April 1, 2017Business, Pennsylvania, Valuation Business owners are each in unique situations, resulting in a variety of reasons for the need for a business valuation. Sometimes it is estate planning, other times a business transaction whether buying or selling a business, other times it could be financing, partnership disputes, divorce, etc. Most business owners start a business but they have no idea, plan or strategy to exit the business. Also, most business owners only experience one business transaction in their life, that is not a lot of business transaction experience and can lead to costly errors. One of the most common is the lack of or an inaccurate business valuation Pennsylvania. An accurate business valuation by an expert third party professional will be taken seriously by buyers, sellers, financing underwriters, etc. Anything but a professional business valuation will not be taken serious. It is thus critical to have an expert firm who specializes in business valuations provide a professional Business Valuation in Pennsylvania. Let’s look at some example situations. The first situation is a party representing the business seller performs a business valuation during a business transaction. This party is biased towards the client trying to sell, thus the likelihood of the valuation coming in high is very common. A second situation is a business valuation is conducted by a party representing the business buyer. Again, this party is biased towards the client and the business valuation will likely come in low. As you can see there could be an enormous discrepancy in the result of the business valuation in these two situations. Sometimes worlds apart, the fact is the only way to accurately determine true market value is for an unbiased third party business valuation firm to perform a business valuation in Pennsylvania. Many formulas can be used to calculate the worth of a business. However, there are no accurate formulas as every business is unique. Furthermore, every market, the economy, timing, financing, demand, similar sales, terms, etc are all unique. These all have to be factored into the equation when conducted a business valuation and determining true market value of a business. Assets, potential of growth, land, leases, contracts and other factors also have to be considered. The importance cannot be emphasized enough of an accurate business valuation in a business transaction to all parties involved. This includes the business buyer, seller, representation of both, financing underwriters, etc. Again, the business transaction experience of most is only one business transaction in a lifetime. The result of overpaying or underselling a business could be a monumental error that must be avoided and can. The way to avoid this is to have a professional third party unbiased expert perform an accurate valuation of the business. A Neumann and Associates has long been a respected and reputable firm that can be counted on. They have been involved with thousands of business valuation Pennsylvania, have over 100 years of combined business transaction experience and always have a commitment to confidentiality and professionalism. For questions and to contact A Neumann and Associates simply visit www.neumannassociates.com/contact.cfm. Pennsylvania Business Broker admin Retail March 23, 2017Broker, Business, Pennsylvania A Neumann & Associates has long served as a Pennsylvania Business Brokers with services ranging from business valuations, representing sellers and representing buyers. With over 25 years of experience and 1000 affiliated merger and acquisition professionals, A Neumann and Associates has built a strong reputation as a trustworthy firm when buyers and sellers need them the most. Confidentiality is always our top priority. This is critical in the process and the one of our major buying and selling advantages. A recent study indicates that 75% of business owners have no idea how they will exit their business. This is where confidentiality is crucial. Without the representation of a respected and reputable firm such as A Neumann & Associates, huge errors can result due to lack of transactional experience. With most business owners exiting their business once in a lifetime, it is critical to avoid mistakes and have the proper representation in order to make the process smooth, consider tax and other items, obtain true market value and maximize proceeds of the sale. Track record is important when considering a Pennsylvania Business Brokers. Reputation, testimonials, experience, professionalism and of course confidentiality all play major roles in finding the right Pennsylvania Business Brokers to represent you in purchase or sale of a business. A Neumann & Associates has long been one of the most respected Merger & Acquisition firms in NJ, which is evident by all the encouraging testimonials, track record and A+ rating by the Better Business Bureau for 10 straight years. Most business sales start with a business valuation. This is an important step, in fact; most buyers will not take a seller seriously if they do not have a business valuation completed by a third party professional. It must be a third party, in order to be considered objective it has to be an independent third party or else there will be a conflict of interest. For instance, a business valuation by the same party assisting in the sale could be inflated, while one completed by the buyer’s representation could be much too low. True market value must be objective, this is achieved by obtaining a professional business valuation to appraise and value the worth of a business by a professional third party. Business valuations and appraisals are not only conducted for sale of businesses. They are instrumental in many situations such as estate planning, financing needs, partner conflicts or divorce, purchase of a business, etc. Each situation is unique which has resulted in a wide variety of circumstances where a business valuation is needed to appraise true market value of a business. With 100+ years of business transaction experience, A Neumann & Associates has not only provided tremendous value and services as a Pennsylvania Business Broker. They have expanded to assist business owners and clientele in NY and PA. This expansion has only improved the reputation and network of the firm as it builds on its strengths, selling advantage and buying advantage. This again is evident by the strong testimonials from those happy with the services and value provided by the firm. When purchase and exit of a business is most often a once in a lifetime occurrence, having the best representation is mandatory and no better the Pennsylvania Business Brokers a Neumann & Associates. Our services start with planning to buy or sell, proceed through every step of the transaction and beyond. Contact us for a free consultation and let us help you with your every need. 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