October 2019 – Calder Capital is pleased to announce the successful acquisition of Muskegon, MI-based Iroquois Hoods by individual West Michigan entrepreneurs Rick Claypool and Nate Thornton. Founded 60+ years ago, Iroquois Hoods is manufacturer of laboratory furniture with an emphasis on custom fume hood products. Fume hoods are local ventilation devices that are designed to decrease an individual’s exposure to hazardous or toxic fumes, vapors, or dust. Fume hoods are considered one of the most important controls within laboratories, keeping workers protected by confining volatile fumes and toxins, removing them from the airflow, and then disposing of them via a laboratory exhaust system. Being one of the most important components of a laboratory, thousands of customers rely on the quality and proper development of these hoods to work appropriately and protect their employees. With over 60 years in the business, Iroquois Hoods has built a reputation on providing high quality, low volume fume hood solutions to a diversified base of customers primarily in the higher education, scientific, manufacturing and governmental markets. Michael Gross, who acquired the business in 2001, has spent years building the company into the well-established business that it is today. After spending years with the company, […]
M&A Market Trends & Statistics Q2 2019
The International Business Brokers Association Q2 2019 Market Pulse recently came out. The Market Pulse Report is one of the most insightful reports on the state of the market and includes the aggregate results of surveys conducted in July 2019 of 288 M&A Advisors. Insights include deal multiples, deal structure, types and motivation of buyers, the timing of the sale, and general commentary from advisors. Here is the full report: IBBA Market Pulse. Hot Industries: Construction/engineering and business services companies lead among hot industries. This is the first time construction/engineering has held such a prominent share of market activity. “Construction activity is hot right now. Companies have strong balance sheets, so they’re expanding their facilities and state and local governments are reinvesting in roads. It makes sense that construction companies are selling now and getting out while things are good,” said Lisa Riley, LINK Business-Phoenix. Who’s Buying? Leading buyers for companies valued between $1 to 5 million have been first-time buyers and serial entrepreneurs, followed by existing companies. Leading buyers for companies valued greater than $5 million have been existing companies (54%) followed by private equity (31%). The primary motivations for the acquisitions of these size companies are gaining a […]
Zeeland, MI-Based Pi Optima Manufacturing, Inc., Acquired by an Individual Investor!
August 2019 – Calder Capital, LLC is pleased to announce the sale of Pi Optima Manufacturing, Inc. of Zeeland, Michigan to an individual investor. Pi Optima is a niche machine shop specializing in custom fixture solutions and magnesium machining. Pi’s customers consist of automotive and aerospace manufacturers nationwide.
Market Update – A Breakdown of Bizbuysell.com’s Q2 Transaction Activity Report
Bizbuysell.com’s National Business-for-Sale Trends and Q2 2019 Transaction Activity Report was recently published and I wanted to share with you a quick synopsis of the data. Bizbuysell.com’s Transaction Activity Report is one of the most insightful reports on the state of the market and includes the aggregate results of thousands of small business transactions nationwide during the present year. Here are the Highlights: Continued Strong Sales Activity: Business sales are down 9.8% compared to 2018, but continue to be very strong relative to the past decade. So far, 2019 is the second most active business-for-sale market since BizBuySell started tracking data in 2007. In 2018, Calder Capital/Small Business Deal Advisors (SBDA) closed 18 transactions all year. Thus far in 2019, we have closed 17 transactions and are on track to broadly beat last year’s company record. We continue to witness strong interest from sellers and buyers in getting transactions to the finish line. Median Revenue of Sold Businesses: The median revenue of all sold businesses rose 14.3% to $601,380, the highest mark on record. Much of that growth can be attributed to the retail and service industries, where the median revenue increased by 20% and 17% respectively compared to Q2 […]
Walker, MI-Based Conveyability, Inc., Acquired by Individual Investor Heath Verstraete!
August 2019 – Calder Capital, LLC is pleased to announce the sale of Conveyability, Inc. of Walker, Michigan to an individual investor. Conveyability is a premier integrator of engineering conveyor and material handling systems. The company’s customers consist of manufacturing and distribution businesses throughout West Michigan.
Brief Update on State of the Lower Middle Market – Q1 2019
By Max Friar, Managing Partner The IBBA’s Q1 2019 Market Pulse recently came out and I wanted to share with you a quick synopsis of the findings. In my opinion, the Market Pulse is one of the most insightful reports on the state of the market and includes the aggregate results of surveys conducted in April 2019 of nearly 300 M&A Advisors. Insights include deal multiples, deal structure, types and motivation of buyers, the timing of the sale, and general commentary from advisors. Here is the report: IBBA Market Pulse. A couple of highlights: Success Rate: Nearly half (48%) of businesses that come to market do not sell. Our experience reflects the insights of the commentary: “You need to come to market with well-organized records, realistic expectations and a committed team who will keep the process moving forward.” (Page 3). Historically, the businesses that we have represented that have not sold are due to price expectations that are out of line with the market, persistently declining sales/earnings and/or poor record-keeping. Timing of Sale: The average time to close a deal is 8.8 months. The range is 8-11 months (Page 5). This is fairly consistent with our experience, however, there are factors (primarily geography and overall marketability – owner […]
Byron Center, MI-Based Fabtec Enterprises, Inc., acquired by an Individual Investor!
May 2019 – Calder Capital, LLC is pleased to announce the sale of Fabtec Enterprises, Inc. of Byron Center, Michigan to an individual investor. Fabtec is a structural steel fabricator whose clients consist of many of West Michigan’s premier commercial general contracting and construction management companies. Since forming Fabtec in 1995, Tim Stevens and Mitch Dalman have steadily grown the company to its present size.
Grand Rapids, MI-Based Pipeline Products Distribution Company, Power Supply, Inc. acquired!
May 2019 – Calder Capital is pleased to announce that Grand Rapids, MI-based Power Supply, Inc. has been acquired by an Individual Investor.
In Q1 2019 the Business Market Trend Was Harder to Predict
According to a just released report by BizBuySell, the volume of Q1 2019 sales of small and mid-sized businesses was down year over year from 2018. Despite lower sales numbers and longer transaction times, businesses are still trading hands in record numbers. The numbers may be down a little, but they are still very good numbers. The mood in the business market remains optimistic. Business brokers surveyed by BizBuySell reported sales of 2,504 businesses in Q1 2019. These numbers were down 6.5% from Q1 2018 and followed a similar year-over-year decline reported in Q4 2018. The reasons for lower volume may include: The current strong economy. Better wages and profits may be influencing workers to remain in their jobs or search for more promising employment opportunities rather than taking on the responsibility of business ownership or selling a business while it’s doing well financially. Uncertainty about current and future federal government actions regarding immigration, healthcare, and tariffs, all of which will affect businesses in regards to worker supply, availability of materials, and costs. The U.S. Government shutdown which affected SBA loan processing. The shutdown also extended the length of time to close for many would-be buyers who could not get […]
Niles MI-Based Sheet Metal Manufacturer C.N.C. Products, Inc. acquired by Parker Holding
April 2019 – Calder Capital is pleased to announce that Southwest, MI-based C.N.C. Products LLC has been acquired by Parker Holding, Inc. C.N.C. Products was established in 1987 by Mr. Fritz Knauf, along with his brother-in-law. Mr. Knauf had previous experience purchasing sheet metal products from a variety of businesses, so when a supplier of his called to inform him they were going out of business, he saw an opportunity, acquired the assets of the Company and resumed operations. This purchase was the backbone of C.N.C.Products. The Company has since been providing sheet metal fabrication services to customers for over 30 years. The Company boasts an ISO 9001:2008 certification and has a diverse customer base. Parker Holding, Inc.’s President & CEO Gerri Davis-Parker is pleased to be acquiring C.N.C. Products LLC. Parker Holding, Inc. acquires and manages solid lower and middle market companies that are generally family owned and without a succession plan or successor in place. Parker Holding looks to improve efficiency and profitability, while growing the market share of each acquisition. The Company’s focus is keeping long standing employee teams together to ensure continuity of customer service and to maintain a cohesive workforce. This ensures a smooth transition […]