A past client engaged our team at Calder Capital with a strong desire to grow inorganically, yet without a true idea of how to successfully source and integrate an acquisition. The client desired to diversify the company’s existing business with new products, end markets, and capabilities. In order to better understand our client’s goals and criteria, our Buy Side team met the management team at the facility, inquired as to learn more, and ultimately presented a comprehensive strategy to locate an acquisition target that would meet all of our client’s needs.
Our search began for a synergistic metal products manufacturing company that could fit into the portfolio of our client. Initially, our team researched a large list of 1,000s of companies in the surrounding 250 miles that may be a fit. Researching, finding contact information, qualifying, and reaching out to this many targets is both necessary to generate quality leads and an immense undertaking from a time and energy standpoint. If it were not for the proprietary process developed at Calder Capital to automate and efficiently handle lead flow, the task would be close to impossible to accomplish in a timely manner.
Our strategy began with proprietary research, targeted calling and emailing, and leveraging our current network and database of 55,000+ active buyers and sellers. Within two months into the search and qualification process, our team had initiated several conversations with potential acquisition targets and conducted several calls and meetings to introduce our client. Ultimately, a leading acquisition candidate stood out to our client from both a fit and size perspective, and within 45 days an Indication of Interest letter was signed. The outreach and introduction strategy used by our team is proven to develop off-market opportunities, as evidenced by the eventual target company stating, “I wasn’t necessarily looking to sell when Calder contacted me, but I knew I eventually needed a partner to help the company grow and prosper beyond my involvement, and your client checked all the boxes.”
Throughout the next five months, our team conducted Due Diligence on behalf of our client, including securing SBA and mezzanine financing, directing Quality of Earnings and third-party customer research providers, and management of legal teams culminating in a successful transaction. Overall, over 10+ off-market opportunities were discussed, numerous valuations were completed on prospective acquisitions, and negotiations progressed amicably with the acquisition target, paving the road for a successful partnership for many years to come.
The purpose of this case study is to demonstrate that a correctly-run, aggressive buy-side search will generally yield the best possible result. When sellers are approached professionally and confidentially, off-market opportunities arise and the buyer receives the best price and terms. This is the process that Calder Capital follows with all clients.
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