Calder Capital/SBDA Crush 20th Closing of 2020, Continue At Blistering Pace!

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.”

Calder Capital & Small Business Deal Advisors have successfully closed 20 transactions through July 2020. The team did not hit #20 until mid-November last year.

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.

ClientCity of ClientAdvisorBuyer TypeIndustry
Laser Access, Inc.Grand Rapids, MICalderIndividualManufacturing
Topps Safety Apparel, Inc.Rochester, INCalderStrategicManufacturing
Premier Paper & Supplies, Inc.Grand Rapids, MISBDAStrategicDistribution
Family Wellness CenterMidland, MISBDAIndividualService
Family FitnessHolland, MISBDAIndividualService
D.C. Martin & Sons Scales, Inc.Grand Rapids, MICalderStrategicDistribution
Boelcke Heating & Air ConditioningStevensville, MICalderIndividualService
FoxbrightGrand Rapids, MICalderIndividualService
Campbell Murch MemorialsMattawan, MISBDAStrategicManufacturing
College H.U.N.K.S.Des Moines, IASBDAIndividualService
2B StudiosAda, MISBDAIndividualService
eVideon/Spectrum Health VenturesWyoming, MICalderStrategicHealthcare Manufacturing
Graphics Embossed ImagingGrand Rapids, MICalderIndividualManufacturing
Dickey’s BBQ PitNovi, MISBDAIndividualRestaurant
Stonewall Road Automotive Group, LLCSE MichiganCalderPrivate EquityService
Electric Motor ServiceGrand Rapids, MISBDAIndividualService
A&W RestaurantSt. Charles, MNSBDAIndividualRestaurant
Corridor CoffeeGrand Rapids, MISBDAIndividualsRestaurant
CG Witvoet & Sons, IncGrand Rapids, MICalderInvestment GroupManufacturing
Elite ToolingKalamazoo, MICalderStrategicManufacturing

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.

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