In which direction is the lower middle market moving in 2022?
In the midst of inflation, war, rate hikes, burnout, and labor shortage, the consensus at Calder is that sellers appear somewhat reluctant to come to market.
Amid the uncertainty, many are skeptical of engaging an M&A firm to run a private auction process. Calder’s sell-side team has felt this sentiment. The sell-side tracks prospects closely and despite record Q1 valuation engagements, Calder is experiencing a lower than historical client conversion rate so far in 2022.
Our buy-side team has found that these reluctant sellers are very receptive to targeted outreach, especially when we paint our client as the ideal buyer and show that we understand the emotions of selling.
As an example, a recent buy-side closing (announcement coming soon!) occurred with an owner that had been talking to our sell-side for almost a year. The owner had worked very hard to scale the business and was starting to feel burned out. This seller was reluctant to go through an intense sell-side process, even if it may have yielded numerous potential buyers and potentially a higher price.
When we launched our buy-side mandate to our network, this owner responded to us quickly, significantly re-energized by an existing buyer with a quality background, and was ready to get a deal done. And just over three months later, the deal was done.
Sellers like these are waiting for your phone call. Calder’s buy-side team is standing ready to make those calls on your behalf.
Contact us and we can discuss how our team can show you the universe of prospects you’re looking for.
Select Seller Leads Developed in March
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. Be advised, these engaged sellers are represented by us and selling through a competitive bid process.
If you are interested or know of a potentially interested party, please contact: