July 2020 Newsletter

Q2 2020 has come to a close, yet the uncertainty surrounding the U.S. business climate and affected industries continues to evolve. As we have discussed over the past several months, we have been actively monitoring the U.S. M&A and Private Equity markets. Of particular note has been the slowdown in M&A related activity, as processes have been put on hold (or have been cancelled outright) across the country.

A recent report produced by DealWare surveyed M&A professionals on a variety of topics, including the status of deals that were in process in February 2020. As of May 2020, of the 2,200+ deals that were reported, 40% of those had been put on hold. Additionally, 14% had been terminated, meaning over half of active processes had been paused or cancelled between February and May 2020. In light of this data, DCA feels extremely fortunate to have had multiple M&A transactions close in the first half of this year, and several others that are still actively in process. We see this both as a testament to the resolve and strategic focus of our clients, and the relative stability of the industries we support. We wish you continued health and safety in the months ahead.

DCA was honored to work with TRI HoldCo on their transaction with Quick Quack Car Wash Holdings. Quick Quack will put the capital toward building 14 new locations over the next twelve months, including several in the greater Sacramento area.

TRI HoldCo continues to build its portfolio of highly performing businesses. Contact Craig Mitchell to learn more about how TRI HoldCo can facilitate an exit for business owners while providing a path for employee-ownership.

DCA is a longstanding partner of the Sacramento Business Review Economic Forecast and, as such, we encourage you to participate in the below survey (about one minute) to allow them to effectively track trends in local business confidence. In this Covid-19 era, your opinion is even more critical for policy makers and the business world.

Curt Rocca and Larry Gilmore presented, “It’s a Buyer’s Market,” a webinar on acquisitions timing, typical process, post-close integration, and more.

The recorded webinar and corresponding slides are available online. Please contact DCA if you have any further questions or interest in making acquisitions.