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 dependence, customer concentration, profitability) that […]
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.
May 2019 – Calder Capital is pleased to announce that Grand Rapids, MI-based Power Supply, Inc. has been acquired by an Individual Investor.
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 […]
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 […]
Calder Capital is pleased to announce that Buchanan, MI-based GP Manufacturing has been acquired by Central Industrial Manufacturing, a precision CNC manufacturing company based in Harbor Springs, Michigan. Gordon “Butch” Payton established GP Manufacturing out of pure demand in 1995. After making his first few parts for a friend in need of a favor, it was not long before word of his services spread and Mr. Payton was flooded with various jobs and quoting requests. GP Manufacturing differentiates itself with its quality and ability to start from scratch on any project and build new, creative designs and prototypes. Mr. Payton was pleased with the transition stating, “The entire process took only a little longer than 7 months from initially reaching out to Calder to closing which was less than I expected. The team was great to work with, not only quick to respond but very knowledgeable and helpful. I look forward to ensuring a smooth transition for Central Industrial.” Max Friar, Managing Director at Calder Capital had some commentary on the deal, “GP Manufacturing is a traditional example of a homegrown company that with a focus on quality and a dedication to a customer-focused approach has served an established customer […]
Calder Capital is pleased to announce that West Michigan, MI-based Precision Engineering & Manufacturing has been acquired by Individual Investors. Since they purchased the company in 2006, owners Art and Marcy Gajewski have worked diligently to build and deliver the highest quality services to Precision Engineering’s growing and diverse customer base. As they transition into retirement, the two are very pleased to be leaving the Company in capable hands. “We feel very comfortable leaving the Business in the capable hands of the Tilma Family. It was essential that our successor maintain the level of care for our employees and customers that embodied the culture of Precision Engineering. Hats off to Calder Capital for finding the right fit for the future of our company! The lead investor acquiring Precision Engineering & Manufacturing, Scott Tilma, is eager to build on the success and profitability the Company has historically generated. “I look forward to serving Precision Engineering’s valued customer base and working in a team of talented individuals. Throughout the expedient sale process put on by Calder, I only grew more excited about the prospect of acquiring the Company and I’m pleased Art and Marcy see I will be a good fit to […]
Calder Capital is pleased to announce that Grand Rapids, MI-based Think Chromatic, LLC, has been acquired by Individual Investor, Matt Emery. After nearly 15 years working in the 3D industry, Jay Hoelscher decided that he was ready to pursue other interests, including potentially returning to his roots as a university instructor in 3D design and animation. Jay was very pleased with the smooth transition, stating, “the efficiency and transparency throughout the entire sale process surpassed my expectations. Within the first week of being on the market over 20 qualified parties had expressed interest in the business. Calder did a great job of coordinating and managing the process. We launched onto the market in late October and despite the hurdles of the holidays and government shutdown, we were able to get the deal done in less than 3 months!” The Individual Investor acquiring Think Chromatic, Matt Emery, is eager to continue the success that the company has achieved thus far. “After months of searching, I definitely found the perfect business! I look forward to continuing Think Chromatic’s fast-paced growth and working in a team of talented individuals. I see a great opportunity to grow the business and look forward to continuing […]
Calder Capital is pleased to announce that Grand Rapids, MI-based Corporate Conversions, LLC has acquired SLB Networks, a digital marketing company based in Belmont, Michigan. Ryan Duba, founder of SLB Networks, will be partnering with Corporate Conversions to make sure that his clients will continue to get the same professional and responsive service they always have. He will be available to them both during and after this transition. Duba was very pleased with the acquisition, stating, “Corporate Conversions was very desirable because I was comfortable that our employees and customers would be well taken care of. Our dealings with CC and their management team have been extremely professional with the utmost integrity, respect and transparency.” Mike Reed, Co-Founder and Lead Developer of Corporate Conversions agreed. “Both companies were built on a foundation of serving small business. We are seeking to grow and Ryan was seeking to transition out of the business so it made sense. We have a slightly bigger team and more diverse services to offer to SLB’s customers. We’re looking forward to the integration!” As a result of this acquisition, SLB Networks clients will have access to a wider array of services than they had before, including website […]
December 2018 – Calder Capital, LLC, a mergers & acquisitions firm focused on lower middle market industrial and service transactions, is pleased to announce the successful acquisition of Grand Rapids, MI-based Performance Die Cutting & Finishing, LLC. Established in 1987, Performance Die Cutting specializes in die cutting of sheets, cardboard, foam, cloth, and other materials for a growing base of West Michigan-based customers primarily in the printing and packaging industries. Performance was acquired by Steven Weber of Grand Rapids. Mr. Weber was very excited about the opportunity to purchase and grow Performance Die Cutting. “I’m very much looking forward to taking the reins and growing the business,” stated Mr. Weber. “There are a lot of opportunities to market the business to additional customers as well as to add services. The owners of Performance have done a wonderful job of building a company that focuses on customer service and quality and I feel blessed to be the one that will take it to the next level while maintaining their core values.” Performance Die Cutting had been owned by three partners since they initially acquired the business in 2007. Co-owner Carl Pease had served as the primary operator of the company since the […]