Despite continued low seller sentiment, continued rising rates, and large-scale uncertainty, the Calder Capital/SBDA team completed transaction #35 of 2023 continuing their upward climb to smashing previous years’ records.
“Our group has exhibited remarkable stability and resolve. While the majority of our competitors find it challenging to adapt to the current climate, Calder continues to excel, finalizing 11 deals in the third quarter, registering unprecedented revenue (an increase of 178% YTD compared to 2022), and paving the way for another successive year on the Inc 5000 list in 2024,” asserted Senior Partner Max Friar. “This is an achievement seldom realized, especially for firms dependent on securing the subsequent transaction. Our expansion is genuinely astounding.”
During Q3, Calder’s Sell-Side team engaged 26 new clients, Calder’s Buy-Side team engaged 15 new clients, and SBDA’s team engaged 3 new clients. The Calder/SBDA team is currently managing 28 executed letters of intent.
The first half of 2023 was marked by significant inaction on the part of new buyers and sellers entering the market. As reported in our Q2 update, despite investing heavily in building our team’s capacity, expanding our marketing to new sell-side advisors in Indiana, SE Michigan, and Chicago, and implementing a prospect mailing program, Calder sold clients at a faster pace than we were able to engage new clients. We sensed that due to understandable uncertainty and volatility that started in early 2022, many sellers and buyers sat on the sidelines feeling that it was not a good time to start a process.
This dynamic has shifted fairly markedly beginning in Q3. Starting in July, Calder experienced a surge of new clients, both sellers and buyers, resulting in a total of 44 clients added during Q3, a company record. Friar noted, “What was so interesting about our new clients is how evenly matched they were among buyers and sellers. I believe that Q3 was generally a period of relative calm in the macroeconomic environment; interest rates had leveled off, headlines discussed a ‘soft landing’ more frequently, the labor market remained strong, and inflation continued to ease. We believe these factors contributed to a release of pent-up frustration, with significant numbers of new sellers and buyers entering the market.”
Despite the rebalancing between buyers and sellers, buyers remained aggressive in seeking new opportunities. In Q3, two of Calder’s sellers (below) were on the market for less than 30 days before going under a letter of intent.
“We are continuing to see 100+ requests for CIMs for nearly every project that we launch,” noted Max Friar. “It is not uncommon for us to receive 8, 10, even 15 offers on most clients. This type of activity allows us to slide into the driver’s seat and negotiate aggressively for our clients. As a result, many clients in 2023 have sold for more than they expected.”
Regarding industries, Calder has not noticed any strong shifts in buyers favoring one industry greatly over others. Calder’s transactions to date are quite evenly spread over manufacturing, service, construction, and distribution.
Q3 brought lots of improvements across the firm for staff, buyers, and sellers alike. Calder’s email database grew by 13k+ subscribers over the last quarter. The Sell-Side team has revamped its service offerings and advisory for Distressed and Turnaround Businesses. The Buy-Side team introduced its new Bronze program to bring buyers consistent off-market deal flow for low prices.
Calder’s team grew with the addition of M&A Advisors Marc Blom and Brian Eick. Additionally, Jake McDonald and Jakob Simonds were promoted to Associates and have started to make inroads into the Chicago and Nashville markets. This has deepened Calder’s reach in Northern Michigan, Wisconsin, Illinois, Minnesota, and Tennesee.
Topping off Q3, Calder received a number of significant recognitions including ranking on the Inc 5000’s Fastest Growing Companies List for a second time. The team was recognized as Industry Experts in multiple categories including Manufacturing, Distribution, Service, and Construction by the Business Brokerage Press. Calder was also named a 2023 National Best and Brightest Company to Work For Winner by the National Association for Business Resources.
Here is an overview of the transactions closed thus far in 2023 (sell-side client unless otherwise noted):
|Pro Mold & Die||Roselle, IL||Manufacturing|
|Reinke’s Hearth of the Home Fireplace||Harrison, MI||Retail|
|Cameron Tool (Buy-Side)||Lansing, MI||Manufacturing|
|Sparkle Car Care Centers (Buy-Side)||Benton Harbor, MI||Service|
|Maggie’s Organics||Ann Arbor, MI||Distribution|
|Quality Automotive Repair||Sault Ste Marie, MI||Service|
|Action Water Sports||Hudsonville, MI||Retail/Service|
|Sign Manufacturing Company (Buy-Side)||West Michigan||Manufacturing|
|G & C Glass (Buy-Side)||Lake Zurich, IL||Construction|
|Mechigian Car Washes||Metro Detroit, MI||Service|
|LaFontsee Galleries||Grand Rapids, MI||Retail/Service|
|Northern Pipe (Buy-Side)||Green Bay, WI||Service|
|The Ferraro Group||Traverse City, MI||Construction/Service|
|Coach House Iron||Sparta, MI||Manufacturing|
|Maid Brigade||Pittstown, NJ||Service|
|Diamond Die & Mold Co.||Clinton Twp, MI||Manufacturing|
|Welding Manufacturing Company||Lake Zurich, IL||Manufacturing|
|Machine Service & Sales Company||Des Plaines, IL||Distribution/Service|
|Olive Cart||South Haven, MI||Retail|
|Asphalt Maintenance Contractor||Naperville, IL||Construction/Service|
|Forklift Dealership (Buy-Side)||Ohio||Distribution|
|ServPro of Saginaw||Saginaw, MI||Construction|
|Blohm Creative Partners||East Lansing, MI||Service|
|A&W Restaurant of Ortonville||Ortonville, MI||Restaurant|
|Michigan Electric Company||West Michigan||Construction/Service|
|Express Employment Professionals||Kalamazoo, MI||Service|
|Hot Side Service Co.||Grandville, MI||Service|
|Rinzema Greenhouses||Grand Rapids, MI||Retail|
|Waverly Animal Hospital||East Lansing, MI||Service|
|Post Hardwoods||Hamilton, MI||Distribution/Manufacturing|
|Turner’s Greenscape||Ann Arbor, MI||Service/Retail|
|Lumber Manufacturing Company||Eastern Michigan||Distribution/Manufacturing|
|Knot Just a Bar||Bay Harbor, MI||Restaurant|
|Metal Fabrication Company||Northeast Indiana||Manufacturing|
Please contact Calder if you have an interest in a business valuation, selling a business, or acquiring a business.
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