Jonathan “Jake” Jacobs was one of those lucky children who knew what he wanted to become – an accountant. FIRM: Rose Snyder & Jacobs SPECIALTIES: Mergers and acquisitions, financing alternatives, entrepreneurial and family businesses, public companies HOBBIES: Travel, family time, theater and cultural events, golf, charitable board participation, mentoring He majored in accounting at the Wharton School of the University of Pennsylvania and then joined the Los Angeles office of KPMG, one of the biggest firms in the country. But, as often happens, the realities of the profession modified his dream. “At the time, I thought knowing my debits and credits and being technical would make me into a great accountant,” recalled Jacobs, now a partner at Rose Snyder & Jacobs in Encino. “Only later did I learn that being a true accounting professional required so much more – empathy, problem-solving, collaboration, communication, relationship building and, sometimes, a sense of humor.” Jacobs specializes in mergers, acquisitions and financing for client companies. The most interesting part of his work is helping clients solve issues that are most important to them, using his training in human behavior, marketing, sales and operations as well as finance. One story in particular illustrates Jacobs’ approach to working with clients. In 1995, he was introduced to a 30-something-year-old general manager of a manufacturing business who was considering buying the company from his father and three partners. The would-be entrepreneur was worried because the deal required him to pledge all his personal assets as collateral for the acquisition loan. “In our first meeting, I looked over the information and said ‘Tim, this is a no-brainer.’ He asked me if I wanted to invest, and I said no because it impaired our independence. So he got a family member to do it. Long story short, the business is worth 20 times what it was in 1995, the family member has gotten back 20 times his original investment, and I am still his independent accountant.” In terms of work ethic, Jacobs tries to put himself in the position of his clients and asks what he would do in the same situation. Empathy and a strong desire to solve – as opposed to create – problems are important personality traits, he said. “I am also very collaborative — I enjoy working with other trusted advisors to find the best answer for our client, even if it did not originate with me.” The biggest shift during his 30-plus years in the profession is the shrinkage of the Big 8 accounting firms. Many executives now use the term Big 4. A wave of mergers and the demise of Arthur Andersen in the aftermath of the Enron scandal in 2002 has reduced both the number and importance of the big firms. “There is a much more level playing field between the local or regional firms and the national firms,” Jacobs said. “Many very talented accountants have left the national firms and now work in the more entrepreneurial smaller firms. The smaller firms that work on public companies are scrutinized in a similar way to the national firms, and their audits have become more widely accepted. The smaller firms also tend to be significantly less expensive.” As managing partner at one of those smaller firms, Jacobs describes his role as part rainmaker, part mentor and part client relationship manager who handles the most complicated and sensitive matters. When asked which accounting rule he’d like to change, he responds bluntly: “There are too many to mention. The rules and financial statement disclosures have proliferated and have become much more complicated and obtuse.” Jacobs figures he works 45 to 50 hours a week, but that’s “strictly” work because he and his wife spend a lot of additional hours socializing with clients and their personal network of professionals. As a result, “sometimes it’s hard to tell where work ends and personal life begins.” Out of the office, he enjoys spending time with his children and four grandchildren, golf, travel and charitable organizations. He has served on the board of the United Way San Fernando Valley region and the advisory board for the David Nazarian College of Business at California State University Northridge. Powerful accountants derive their power from knowledge as well as trust, Jacob believes – a combination of the technical skill he gained through education and the people skills he gained from experience. “We have expertise that our clients usually don’t have,” he said. “Beyond that, if a client believes we have their best interests at heart and are willing to be their advocate, we gain a credibility that is invaluable.”
