The Basics: Buy-Side M&A Advisory Firm FAQs
Q:Â What does a Buy-Side Mergers and Acquisitions firm do?
A: A buy-side M&A advisory firm works with engaged buyer clients to identify, source, analyze, and transact with acquisition targets. It's important to note that we are working for the buyer, not the seller(s).Â
Q: Why work with an M&A buy-side firm?
A: Working with a buy-side M&A firm like Calder gives you access to high-quality off-market deal flow, where you're not competing with dozens of other buyers or rushing to submit offers. These proprietary opportunities generally offer you more time to build trust with sellers and negotiate favorable terms than you would experience with a listed sell-side opportunity. An experienced M&A firm provides expert guidance throughout the complex acquisition process, saving you time and avoiding costly missteps.
Q: How is Calder different from traditional buy-side firms?
A: Unlike most buy-side firms that rely solely on existing networks or press releases, Calder executes a proactive 7-touch point outreach strategy focused on sourcing off-market targets. We also guarantee introductions, vet and qualify each seller, and offer a full suite of acquisition services - from prospecting, valuation, LOI, to closing coordination.
Q: Why focus on off-market transactions?
A: Off-market acquisitions can provide buyers with exclusive access to businesses that aren’t publicly listed or actively being marketed for sale. This often means less competition, more favorable deal terms, and the opportunity to build relationships directly with owners. By focusing on off-market opportunities, Calder helps clients avoid bidding wars, often saving them on average ~0.5x EBITDA or more compared to fair market value. Our professional yet aggressive outreach process ensures we uncover these hidden gems before others even know they’re available.
Cost, Timeline, & Track Record
Q: What are the costs related to an M&A buy-side search?
A: We have several different search offerings, including our Gold, Silver, and Bronze programs. Our fee structure is simple; the only ways we are compensated are through a monthly work fee and a success fee upon completion of the transaction. There are no large fees up front, no milestone or breakup fees, or any hidden or surprise fees.Â
Q: What is Calder’s close rate or track record?
A: Historically, Calder has successfully closed transactions with ~60% of engaged buyers. It is worth noting that when a search is unsuccessful, it is rarely due to a lack of targets, but more so, the inability to reach alignment on price and terms with those targets. The off-market approach requires persistence and a buyer who is willing to make offers and negotiate.Â
Q: What is the average timeline of a buy-side search?
A: On average, from signed engagement to closing, the process typically takes 7-10 months. This can vary quite a bit from case to case, and we’ve certainly had some buyers close quicker and some take longer than desired.
The Search Process & What's Included
Q: What services are included in Calder’s buy-side engagements?
A: We handle prospect research and validation, cold calling and email outreach, seller screening interviews, deal qualification and introductions, valuation support and LOI drafting, negotiation and deal structuring, due diligence coordination, and closing support. Most clients desire full-service assistance from start to finish. Some buyers only look to Calder for deal flow, and we can flex our model to accommodate an introduction and smooth hand-off for buyers that do not need assistance post-introduction.
Q: How soon can I expect introductions after signing up?
A: Upon executing the agreement, our team gets moving quickly. It will take a few weeks of preparation prior to search launch, but qualified introductions typically begin within the first month of engagement, thanks to our fast and targeted outreach process.
Q: Do you guarantee a certain number of seller introductions?
A: Yes. Our Buy-Side Gold clients are guaranteed 10 qualified seller introductions that meet their criteria—or they don’t pay. This performance-based model ensures alignment and accountability.
Q: How does Calder source off-market sellers?
A: Calder employs a 7-touch point outreach process that has been honed over years of experimentation and working closely with a data analytics firm. Our outreach process combines a mixture of cold calls, cold emails, text messages, and voicemail drops to maximize response rates. We average a 40% response rate after targeting an owner 7 times over a two-week time frame. Each prospect is thoroughly screened and vetted by our team prior to introduction. All targeted owners that do not respond to the initial outreach campaign are put into a drip campaign so that they are continuously nurtured.Â
Q: How is my deal team structured?
A: For each search, we compile a deal team of four team members composed of an Analyst, an Associate, a Director, and an Advisor. Deal teams are assigned after client engagement. Due to the fast growth of our buy-side services and shifting team capacity, it is not possible to assign a deal team prior to engaging with Calder.Â
Search Scope: Size, Industry, & Geography
Q: What size deals do you work on?
A: We work on deals of all sizes. There is no deal too small or too large for us. We’ve closed deals as small as $200k and as large as $150M+.
Q: What types of industries do you search in?
A: We can find sellers in every industry! We have completed deals in 40+ industries and apply our proven process to each new, unique industry we have the opportunity to search in.Â
Q: What geographies do you cover?
A: We have sourced deals throughout North America. Many are surprised to learn we not only source throughout the United States but also Canada and Mexico! Our team has closed deals in 30+ US states. Our proven process works wherever we aim our outreach. We have also had success and are well-suited to assist foreign investors in gaining access to US deal-flow.
Who We Work With
Q: What types of buyers do you work with?
A: We work with all kinds of buyers: private equity, family offices, privately and family-owned businesses, strategic acquirers, individual searchers, traditional search funds, and more! See examples of our engaged buyers here.
Q: Do you assist primarily with platform or add-on acquisitions?
We assist buyers with both platform and add-on searches. We have guided multiple buyers through the acquisition of a platform and subsequently helped them close on multiple add-on and bolt-on acquisitions to support their roll-up strategy.
Where To Start
Q: Can Calder help me evaluate if a search is the right path prior to making a commitment to engage/search?
A: Absolutely! Our team will happily research your criteria and educate you on the scope of your search, including demographics such as the total number of pursuable targets, a geographic heatmap of their location, a breakdown by size, industry, etc. There is no cost or commitment from you for our team to do this. If you’d like us to research your search, submit your criteria here.
Q: What if I’ve never bought a business before? Can Calder help me?
A: Many buyers are first-timers, and Calder is well-suited to work with entrepreneurs and searchers. Calder’s team educates and guides clients through each step, from target criteria development to diligence and post-close transition. We serve as your partner from start to finish.
Q: What if I don’t know exactly what kind of business I want to acquire?
A: That’s common! It is critical to have well-defined criteria, and we help clients refine their acquisition criteria by exploring their financial goals, risk appetite, background, and strategic intent. Our preliminary research phase helps determine the market opportunity before a client commits to a search.
Other Common Buyer Questions
Q: Can Calder help me understand what businesses are worth?
Yes. We provide valuation support, including industry multiples, comparable transactions, and cash flow modeling.Â
Q: Can Calder help me find financing for an acquisition? What about attorneys, CPAs, QoE providers, etc.?
Most buyers utilize financing, and even beyond financing, buyers need a complete deal team, typically consisting of a lender, attorney, CPA, and financial due diligence provider. Calder can introduce our clients to a wide network of trusted service providers.
Q: How involved will I need to be in the process?
A: We do the heavy lifting on outreach, screening, and qualification. You’ll be looped in when it’s time to review targets, have introductions, evaluate deals, and make key decisions, but you’re not expected to be hands-on every day.
Q: Can you reach out to companies I already have in mind?
A: Yes. We’re happy to contact targets you’ve identified but haven’t been able to reach, or prefer not to contact directly for confidentiality reasons.Â
Q: Can I exclude companies from the search that I am already in touch with?
A: Yes. At the beginning of the engagement, you are able to provide us with a list of exempted companies that you have already been in touch with.
Q: Is my identity able to remain confidential throughout the process?
A: Yes, most of our buy-side clients are not publicly known. We create a blind buyer profile that we use when speaking with interested sellers.Â
Contact Calder Capital
Please be advised that we take confidentiality seriously. Your inquiry will never be disclosed to a third party and your email address will never be sold!