Newsletters

Action Now! - 08/24/09

"The economy has finally hit bottom and is starting to turn."  All of us want to hear and believe this message.  The JANAS TEAM is seeing a gradual, though reluctant loosening in the capital markets.

• Janas Consulting is seeking an expansion of a client's Line of Credit.  Four banks are competing for the business.  A few months ago there was only cursory interest in such credits.
• Janas Associates is receiving calls from private equity firms ready to make investments in private companies.  Dick Gregerson, President, received two calls and four emails yesterday announcing their interest in making new investments.
• Operating companies who have cash and credit reserves are more aggressively pursuing the acquisition of weakened competitors.  Janas Associates represents several buy side clients in "depressed" sectors of the economy that are seeking acquisitions.  For the past several years, Strategic Buyers have been locked out of the market by Private Equity competition.
• Janas Associates has been contacted by former business owners who sold during the boom wanting to buy companies.  The thrill of running a business far exceeds the frustration of making a putt, travel, or watching television.

Now is an opportune time for companies that have outperformed their sector to undertake transactions, either as a seller or a buyer. Performing businesses have a lot less competition than they did during the easy times of several years ago. Banks, Private Equity Groups and Operating Companies are looking for places to put their money to work. These firms need to make investments, but are cautious. Both investors and strategic buyers will pay attractive prices for good companies.

The improving financial environment, coupled with positive historical performance, and future promise can result in near term availability growth capital for an acquisition strategy. For those that want to monetize their ownership, acquisition capital is available and active. For sellers, capital gains tax rates are likely to increase. Janas Associates and Janas Consulting encourage companies to define their growth capital needs or market their companies.