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CMTC Conference

CMTC Conference

Several members of the Janas Team were invited to the CMTC Conference in August as a presenter. Carter Freeman delivered a presentation about Middle Market Mergers & Acquisitions (“M&A”). We interfaced with several of you in the breakout after the formal session. We believe that we can jointly support your clients in M&A endeavors.

A Janas focus is the Manufacturing Industry, including Aerospace and Defense, and Distribution, among many other industries. Janas is an Investment Bank that undertakes sell side assignments for clients.

Over the last 25-years, Janas has developed an in-house database of more than 3,000 Private Equity Groups that represent the largest population of institutional investors in Middle Market companies.

Valuations for Manufacturers and Distributors is at an all-time high. Both Private Equity Groups and Strategic Buyers are flush with liquidity.

An important service that CMTC professionals can identify is the timing for which of your clients are ready to sell all or part of their companies. Janas professionals are available to accompany you on visits to your clients to discuss their exit strategies.

During the sale process, Janas wants CMTC professionals to continue to work with the client to produce information for a transaction and to remain a contact point with client ownership and management.

Examples of completed Janas transactions:

• Sell Side – Western Exterminator. The company sold for 24X pretax cash flow. Western Exterminator was valued by its British buyer based on cost improvements in purchasing and staffing engineered in conjunction with Janas, who represented the sellers.

• Purchase of Fotona by Gores Group and 4Medicine. This international transaction closed despite a thicket of patent litigation commenced by a Fotona direct competitor. The new owners more than quadrupled its money in three years. Click here to hear how we did it.

• AMD. Obtained startup capital through by its manufacturing contract with its Chinese vendor and provided information that enhanced a lawsuit settlement. Two years later. Janas sold AMD sold for 20X EBITDA. Click here to see how we got them launched to success.

Selling Yourself

Selling Yourself

Janas was founded on the principal that lower middle market companies deserve a level of professional expertise enjoyed by their larger competitors. Janas provides that level of service to its clients.

Over the last 25 years, Janas has interfaced with owners who initially decided to sell their company themselves. They undertook the effort without engaging an Investment Bank, then received below market offers. Many such offers were accepted leaving millions of dollars on the table, an amount far in excess of investment banking fees.

In a study prepared for the Securities and Exchange Commission, of the lower middle market companies valued between $5 million and $100 million that were put on the market, the majority did not complete a transaction. And of those that did find a buyer, 80% had an advisor handling the transaction.Janas has achieved premium prices for clients whose effort to sell the business on their own did not close.

Jiffy Lube Franchisee. The owner worked to sell his company for two years and obtained an offer of $38 million for his chain of franchised locations and related real estate. Janas restructured the deal removed the real estate. The Janas competitive process resulted in a $62 million purchase price for the operations. The owner retained real estate appraised at more than $30 million. Instead of selling for $38 million, the owner walked away with a $92 million package as a result of Janas’ advisory services.

Specialty Toy Company. The owner had an offer on the table for $8 million. We promised to achieve $10 million. Through an active marketing campaign Janas achieved a transaction $12 million plus a $2 million earnout.

Auto Parts Manufacturer. The owners wanted to merge with another company with a 50% – 50% ownership structure. After detailed discussions, the deal changed unfavorably to 2/3 – 1/3 and fell apart. Janas was engaged to help the client grow without the merger. Using Janas’ advice and assistance, the company tripled in value that was realized three years later when Janas sold the business.

Successful Middle Market companies are owned and managed by entrepreneurs, who are experts at meeting their customers’ needs. However, most have never sold a business, so are much less experienced than the buyer sitting across the table. For 25 years, Janas has helped level the playing field for entrepreneurs in their once-in-a-lifetime transactions.

This article is for informational purposes only and should not be considered as an offer to buy or sell a security. Securities are offered through JCC Advisors, Member FINRA/SIPC.