After closing a record 22 transactions in 2019, the Calder Capital/Small Business Deal Advisors teams continue their strong momentum, fighting against COVID and shattering their own record.
“We did not achieve 20 closings until mid-November last year. We only need three more closings to beat our record,” highlighted Calder Managing Partner, Max Friar. “I am very confident we will get there. We are more focused than we’ve ever been. Certainly, there are obstacles in our way but by combining creativity with old fashioned hard work we won’t be stopped. As I said back in May, there is no waiting. We are going. There is no back to normal. This is it. Business owners want and need to transition and we are more prepared every day to make that transition as positive as possible for them.”
Friar continued, “I find it very interesting the mix and timing of certain transactions. For example, SBDA has closed on three restaurant transactions since March 31. To many, that might seem counter-intuitive, however, the restaurants we sold were quick to adapt to selling during shelter-in-place orders and thrived during the pandemic by focusing heavily on mobile ordering, takeout, and delivery.”
“We have also seen a number of additional manufacturing closings occur, which has traditionally been our bread and butter. At 35% of all closings, manufacturing is still down versus previous years but it’s inching back up.”
Here is a complete list of Calder/SBDA closings through July 31, 2020.
|Client||City of Client||Advisor||Buyer Type||Industry|
|Laser Access, Inc.||Grand Rapids, MI||Calder||Individual||Manufacturing|
|Topps Safety Apparel, Inc.||Rochester, IN||Calder||Strategic||Manufacturing|
|Premier Paper & Supplies, Inc.||Grand Rapids, MI||SBDA||Strategic||Distribution|
|Family Wellness Center||Midland, MI||SBDA||Individual||Service|
|Family Fitness||Holland, MI||SBDA||Individual||Service|
|D.C. Martin & Sons Scales, Inc.||Grand Rapids, MI||Calder||Strategic||Distribution|
|Boelcke Heating & Air Conditioning||Stevensville, MI||Calder||Individual||Service|
|Foxbright||Grand Rapids, MI||Calder||Individual||Service|
|Campbell Murch Memorials||Mattawan, MI||SBDA||Strategic||Manufacturing|
|College H.U.N.K.S.||Des Moines, IA||SBDA||Individual||Service|
|2B Studios||Ada, MI||SBDA||Individual||Service|
|eVideon/Spectrum Health Ventures||Wyoming, MI||Calder||Strategic||Healthcare Manufacturing|
|Graphics Embossed Imaging||Grand Rapids, MI||Calder||Individual||Manufacturing|
|Dickey’s BBQ Pit||Novi, MI||SBDA||Individual||Restaurant|
|Stonewall Road Automotive Group, LLC||SE Michigan||Calder||Private Equity||Service|
|Electric Motor Service||Grand Rapids, MI||SBDA||Individual||Service|
|A&W Restaurant||St. Charles, MN||SBDA||Individual||Restaurant|
|Corridor Coffee||Grand Rapids, MI||SBDA||Individuals||Restaurant|
|CG Witvoet & Sons, Inc||Grand Rapids, MI||Calder||Investment Group||Manufacturing|
|Elite Tooling||Kalamazoo, MI||Calder||Strategic||Manufacturing|
Overall, from an industry standpoint, the breakdown of deals has been as follows:
- Service – 40%
- Manufacturing – 35%
- Restaurant – 15%
- Distribution – 10%
12 transactions have been in West Michigan, 4 in out-state Michigan, and 4 in other states including Indiana, New York, Iowa, and Minnesota. Among the buyers, 12 have been individuals, 6 have been strategic buyers, and 2 have been private equity/investment groups.
Consistent with national trends, Calder is experiencing a pullback by new sellers while buyer inquiries are at multi-year highs. “Buyers are very aggressively pursuing businesses that are pandemic-resistant,” noted Friar. “Buyers are willing to pay strong multiples for solid businesses. While it may seem like the wrong time to sell, consider that 52% of companies were completely or partially shut down during the spring so those sellers that are showing strength are among the minority and they will be intensely pursued by qualified buyers if they decide to sell. Historically low-interest rates and unprecedented government assistance with financing are resulting in bidding wars for many of our clients,” Friar concluded.