Janas is pleased to announce….
Paul K. Richey, CPA, and licensed by the Financial Industry Regulatory Authority (FINRA), has rejoined the firm. Paul moved to another M&A firm several years ago. After recent discussions, Paul returned to Janas and is fully engaged in delivering services to his clients.
In his initial long career as a Partner with the international accounting firm, KPMG, Paul led public and private M&A engagements in various industries, including Aerospace & Defense, Financial Services, Hospitality, Food Service, and Manufacturing and Distribution. He served as managing partner in San Diego, California; Rochester, New York; and as Partner-in Charge of the Accounting and Auditing practice in St. Louis, Missouri.
Paul has M&A and Consulting experience in many industries. He has a specific focus on transactions related to Retailers in Quick Lubes, Cash Washes, and Food Service. He has served sell side clients and buyside clients undertaking a roll-up in the Quick Lube and the Cash Wash Industry. He has sold more than 700 stores in these sectors.
He interfaces with Private Equity Groups who focus on the Industry. Private Equity raised more investment capital in 2019 than in any previous year. The Coronavirus Pandemic slowed M&A activity. Nonetheless, PEG’s tell us daily that “We are Open for Business.”
One investment group told his that: “We see a tremendous opportunity to deploy our back, buy, and build investment strategy within the Cash Wash Industry and are excited to build a Multi-Regional Platform of high-quality car washes.”
Paul works with his sell side clients in the Industry to analyze current year results and determine the process for achieving excellent sell side financial results. Paul understands the Industry which allows him to garner outstanding results for clients.
Office: 626-432-7000 Cell: 619-993-6613
The Janas Associates and Janas Consulting web sites have been combined to provide a more comprehensive description of who we are and the types of clients we serve.
Janas represents clients in the sale and acquisition of Middle Market businesses, corporate finance, and management consulting. In current assignments, Janas professionals are helping clients prepare for sale and actively working both sell side and buy side transactions for clients. Our client companies operate domestically and internationally.
Our new sights include a BLOG and connection to the web sites of affiliated firms:
Member: FINRA and SIPC.
Family and Closely Held Business Advisors.
Clean and Renewable Energy Specialists
Our professionals have all lived other business and professional lives – CPA, CFO, Management Consultant, Business Owner, Marketing Executive, and others. We ‘put ourselves in the shoes’ of our clients in a wide variety of businesses and industries. Janas Analyst and Intern position are filled by students from US based universities.
Janas recognizes that company valuations reflect a variety of factors. Telling your “Company Story’ is a Janas specialty. We know how to identify and describe your company to enhance Ownership Value.
Over more than two decades, Janas has completed more than 80% of its sell side transactions. Our success rate significantly exceeds the transaction closing rate of other Middle Market Investment Bankers.
ACCESS OUR WEB SITE
www.janascorp.com or www.janasconsulting.com
Six weeks ago in mid February 2020 the world was different. The bright economic prospects in the U.S. for another year of expansion and growth seemed inevitable. Employment was at record highs, business and consumer confidence was strong, and GDP was forecast to grow at a healthy 2% for 2020. The expectation was that the roaring 1920s were back!
But then came the Corona Virus (Covid-19) which lurked in the wings, and has in 6 weeks spread across the world and turned a robust global economy into dust overnight, and has left in its wake thus far more than 2 million people infected, 140,000 dead, and it’s not over according to daily live tracking statistics.
To make matters worse as of today, mid-April 2020 if you haven’t been living on Mars, maybe you should be. Because most U.S. state orders are for businesses to close and citizens to stay at home, work from home, and not go out unless you have a darned good reason to. And as a consequence, the U.S. went from gaining 200,000 jobs per month to losing nearly 23 million in the last few weeks alone. Nothing like this has ever had such an enormous impact on labor since the Great Depression. It’s unreal, or surreal like a zombie apocalypse movie. And regardless of how many times I try to wake up, I can’t because it’s not a dream. And for now, this new reality for CEOs and business owners may not forecast increased sales, but rather increased bankruptcies.
Enter the US Government to the rescue In response to this health-driven crisis many governments around the world have braced for impact, all hoping to ease the economic crash by injecting trillions of dollars into their respective economies. The U.S. in response recently passed the $2 Trillion dollar Coronavirus Aid, Relief and Economic Security Act (CARES) … to help fund payrolls and other operating expenses for 2.5 months for small businesses. The hope is to help shore up small business until the crisis passes. Sounds scary, and it is.
As a consequence, managing or owning a business has thus gone from approaching a paradise in February 2020 to Hell in March and going forward a living nightmare if your business was forced to close until further notice.
To help, we already reviewed dozens of webinars, newsletters, articles and websites over the past 3 weeks and found a few that we believe can really help cut through the haze and focus on how to specifically get aid to your business and keep you afloat. Check these out:
- How to Obtain an SBA Coronavirus PPP Loan and Have It Forgiven:
- 8 Ways Business Owners Can Take Advantage of the Federal Stimulus Package:
- SBA Loan Application – PPP – Paycheck Protection Program :
- CEO Coaching Int’l group: Navigating the Crisis with access real-time CEO advisors:
This CEO Coaching Int’l group brings together CEOs offering free time to discuss your particular Covid-19 situation and offer some resourceful tools and ideas.
From my experience the key performance exercise is creating a detailed CASH FLOW PLAN for the next 6-12 months. Minimizing outflows and using the government loan and forgiveness programs to ease the pain. So if you haven’t taken advantage yet, better get started asap. Many will qualify for relief, but fewer if you don’t act fast. Second is to gather your executive team and external advisor including your CPA, Attorney and Banker. Everyone needs to be on the same page and follow your business crisis & continuity plan. This is your moment to shine through as a strong leader with a keen foresight and a keen ability to communicate to your staffers how the company will navigate through this existential crisis like no other. Until then… please stay well, stay strong, and stay together. There is light at the end of the tunnel.
Rick Andrade, Managing Director
BEST YEAR, WORST TIMES
Even in the worst of times, middle market M&A deals get done. During a 15-month period beginning in early 2008 and into the dark days of 2009, Janas completed eleven transactions and a half dozen consulting assignments – despite the Great Recession. Even when times are challenging, buyers who are compelled to complete their strategic objectives, and investors that want to put their money to work, still want to do deals. For good companies that are well-managed there still exist excellent opportunities.
Maximize Enterprise Value despite the Coronavirus Pandemic
In little more than a year, Janas completed eight petroleum distributor transactions, plus an auto parts company, a plastic cash card manufacturer, and a landscaping products company–all for premium prices. Janas Consulting supported several clients in their work to enhance Enterprise Value.
Janas told client stories so well that buyers became confident that buying our client was something they had to do–even in the darkest hours of the mortgage backed securities bust.
Janas has been flooded with calls and emails from Private Equity Groups and strategic buyers over the past month looking to make acquisitions despite remain-in-place orders and other restrictions. All of them are saying “We’re open for business!”
So, if you are kicking yourself for not selling your business in 2019, we at Janas are saying that it’s not too late! Perhaps you wanted to retire and now dread steering your business alone during these uncertain and demanding times. Wouldn’t you be better served to have a financial partner with substantial resources and expertise to help you through the tough times to come?
Call us at Janas—we have a track record of selling businesses at handsome prices even in tough times.
WE TOO ARE OPEN FOR BUSINESS AND AWAITING YOUR CALL!
Today’s markets have some of the same uncertainties as in the Great Recession of 2008-2009. The Great Recession:
- Huge real estate bubble
- Noncollectable mortgage paper that wasn’t going to cure itself
- Precipitous economic decline
The current pandemic, though massively disruptive, is more transitory. Covid-19 will pass and the economy will get well. In the meantime, the United States Congress is progressing toward a $2.0 trillion Economic Stimulus Package. According to many economists, there will be a boom period to follow.
Businesses that are designated as essential services will be least affected including:
- Logistics & Storage
- Medical – Services and Products
- Aerospace & Defense
- Food and Agriculture
- Government Services
- Financial Services
- Chemical, Energy, Public Works etc.
These companies may experience stronger demand for their products and services.
During 2019, Private Equity Groups raised record levels of capital that now needs to be invested. The coronavirus has significantly decreased acquisition closings. For operating companies:
Valuations are high with huge acquisition demand and dwindling supply.
At Janas, we are encouraging Companies and their Trusted Advisors to explore with us preparation to enter the market within the next 60-90 days. Our intent is for our clients to benefit from an ebullient market that is sure to follow the decline of Covid-19.