Calder Capital Buy-Side Client Update: August 2021

Can you believe August has already come and gone?

It’s time to brief you in detail how Calder Capital’s Buy-Side team is fulfilling our current buy-side clients’ mandates. August was exceptional!

 

 

How do we do this? It’s not rocket science. We combine a personal touch, automation, and data analytics with the tedious work that no one wants to do – lots of research, cold calls, and email outreach.

 

Select Seller Leads Developed in August

The Indication of Interest

If you are an aggressive buyer you are likely speaking to more than one potential seller at a time. Given all the time, effort (emails and calls), and capital expended to unearth numerous prospects, how do you determine who to present a Letter of Intent (LOI) to? After all, an LOI is an offer with binding terms and at this stage it may be difficult to decide between numerous opportunities.

A lesser known tool, often utilized by the Calder team, is the Indication of Interest (IOI). An IOI is generally two to three pages long and much like the LOI, an IOI allows a buyer to propose a purchase price, terms, deal structure, and transition expectations, simply without binding exclusivity terms and timelines.

Therefore, an IOI is not signed by the potential seller as it constitutes no binding agreement, yet through seller feedback it does ensure alignment by both parties prior to either party diving deeper and spending additional resources on the creation of an LOI.

This allows a buyer to negotiate with multiple potential sellers at once and often potential sellers may self eliminate themselves by revealing unrealistic valuation expectations or a disinterest in certain terms.

Furthermore, when utilizing the IOI, the ensuing LOI can often be more detailed than otherwise skipping straight to an LOI. This gives the buyer a better reason to request and more time to analyze due diligence items.

When engaged, the Calder team follows this process and will write IOI’s on behalf of our clients, often multiple at a time. Our team will also draft lengthier and more detailed LOI’s ensuring that when the LOI is signed our client can turn over nearly all details needed for the attorney to draft the definitive purchase agreement, saving not only time but also money.

 

 

Interested in Working With Us?

Calder works with clients on a guaranteed basis, so if we don’t deliver our clients don’t pay. Check out some of our current clients here.

Alternatively, if you enter your criteria here our system will automatically alert you to any current or future opportunities we are representing that are of interest to you. Be advised, these engaged sellers are represented by us and selling through a competitive bid process.

If you are interested or know of a potentially interested party, please contact:

Sam Scharich
Direct: 616-970-6124
[email protected]

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Calder Capital, LLC