Recent headlines read, “Elon Musk has a super bad feeling about the economy,” and “Jamie Dimon predicts an economic hurricane this year” meanwhile companies are freezing new hires and cutting their existing workforce.
Buyers and banks are acting conservatively, bracing for rising prices and tampering down revenue projections.
Investments are being put on hold due to uncertainty and buyers are questioning if now is the right time to pursue an acquisition.
If we have learned anything about entering an economic contraction, it is that change presents enormous opportunities for those ready to act. American entrepreneurship thrives in tough times and the strong survive.Â
Think back to the 2008 housing market crash where ready buyers pounced on discount price real estate acquisitions.
While times seem dire, the economy will recover, the stock market will hit new record highs, and interest rates will settle and likely even reverse course.Â
The bottom line is that now is the time to act. How are you finding a distressed business for sale?
More sellers are coming out of the woodworks than ever before. The data proves this – as a firm Calder has already engaged more sellers in 2022 than we have in any other year at this time.Â
This is similar to the end of 2020 when the economy also seemed headed into a recession yet M&A as a whole had a record year in 2021.
Except this time will be different. The Fed is raising interest rates, business owners are extremely burnt out, and there is no rescue PPP/EIDL money coming.
We believe that there will be many distressed business sales (that we anticipated seeing in 2020 but never came) occurring in the next few years.
And buyers that are in front of sellers and ready to act quickly will have significant negotiating leverage and discount pricing.
The Calder team knows how to get buyers in front of distressed and turnaround opportunities.
How do we source distressed businesses?
- Lender and referral network – Often distressed business owners turn to their lender first when business starts to go downhill. Calder maintains excellent relationships with a large number of lenders as well as CPAs, attorneys, and business consultants throughout the US that refer us to time-sensitive distressed and turnaround situations.
- Leverage our business owner database – Calder maintains a growing database of over 90,000 business owners across the US that are engaged and inquire regularly about our outbound email announcements of new opportunities.
- Targeted direct outreach – We are constantly in the market. Calder’s buy-side team leverages the latest CRM, email, and calling software in order to be ultra-efficient with our high-quality, high-quantity outreach process. We can target any industry and blitz the market with the proper messaging to uncover all of the distressed sellers available.
With the economic contraction, there are going to be many buyers that decide to sit on the sidelines and wait.Â
Are you going to let opportunities pass you by?
Interested in Working With Us?
Calder works with clients on a guaranteed basis, so if we don’t deliver our clients don’t pay. Check out some of our current clients here.
Alternatively, if you enter your criteria here our system will automatically alert you to any current or future opportunities we are representing that are of interest to you.Â
If you are interested or know of a potentially interested party, please contact:
Sam Scharich
Direct: 616-970-6124
sam@caldergr.com