Exit Planning Client Profile

Industry: Automotive Accessories & Services
Annual Revenue: $7M
EBITDA: $2M

Background & Challenges

After an initial unsuccessful sales process that saw intensive buyer interest, but no traction, ownership engaged Calder Capital’s Exit Planning team. Here were the initial roadblocks to a successful sale:

• Financial Opacity: The business was profitable but lacked clear financial reporting to demonstrate revenue sources and profitability by product segment.
• Owner Dependency: The majority owner was heavily involved in daily operations, while the former owner still influenced business decisions despite having no equity stake.
• Operational Bottlenecks: Inventory levels hovered around 50% of annual sales, with inefficiencies in pricing strategy and SKU management.
• Human Capital Gaps: Undefined employee roles, lack of documented policies, and no clear leadership succession plan created operational risk.

Calder’s Exit Planning Approach

Recognizing that the business was not yet market-ready, Calder Capital structured an exit planning process focused on strengthening the company’s fundamentals before attempting another sale.

Financial Clarity & Performance Tracking

1. Recommended and facilitated the engagement of an external accounting firm to streamline financial reporting.
2. Implemented a payroll system through a third-party provider and restructured the financials to segment revenue by product category.
3. Initiated profitability tracking at a product level to optimize pricing and reduce excess inventory.

Reducing Owner Dependency

1. Conducted strategy sessions with ownership to define leadership roles and responsibilities.
2. Facilitated documentation of core business processes and job descriptions to create a scalable, transferable operation.
3. Coordinated discussions to address the involvement of the former owner and set clear boundaries for decision-making.

Human Capital & Operational Improvements

1. Advised on the creation of an updated employee handbook.
2. Assisted in defining an organizational structure to redistribute operational responsibilities.
3. Provided ongoing coaching to the owner on delegation and leadership development.

Inventory & Pricing Optimization

1. Partnered with the accounting firm to build detailed profitability reports that inform pricing decisions.
2. Initiated efforts to streamline SKU offerings, reducing complexity and improving inventory turnover.
3. Designed an action plan to reduce working capital tied up in excess stock.

Results & Next Steps

1. The company has successfully implemented financial controls and is in the final stages of rolling out profitability tracking.
2. Leadership transition plans are underway, with a formal discussion scheduled to define the former owner’s role.
3. Ongoing efforts to optimize inventory and SKU count will further improve operational efficiency and cash flow.

With these foundational improvements in place, Calder Capital’s next step is to reassess market readiness and develop a new go-to-market strategy, ensuring the business is well-positioned for a future sale.

Why Work With Calder’s Exit Planning Team?

Calder Capital is a National M&A Advisory firm with a proven track record of success, with 300+ deals closed and 700+ valuations completed since opening its doors in 2013. While other exit planning advisors may claim to know how a buyer will view your business, Calder is constantly working with real buyers and closing real transactions. We know what buyers are looking for, and what characteristics make certain businesses more successful on the market than others.

Calder is industry agnostic (does not focus on one industry); however, the firm has closed many transactions in the manufacturing, construction, distribution, and business service industries with enterprise values ranging from $1M – $100M. This does not mean Calder limits itself to these spaces, as we recognize all businesses are not the same, and a successful deal does not always occur in a linear fashion. Calder’s success is driven by its client-focused approach, taking the time to understand our clients and the nuance that comes along with each individual business. This is a point of pride, which makes Exit Planning Services a natural fit.

Calder Capital has the people, knowledge, tools, and resources needed to assist businesses with varying degrees of complexity. With Calder Capital’s experience with business valuation and M&A sales, there is a natural opportunity for clients to transition from Exit Planning to being engaged for an optimized business sale all while maintaining continuity within Calder Capital.

Contact Exit Planning Director, Jared Friar at [email protected] or 616-822-0141 to learn more!

About Calder Capital

Calder Capital, LLC is a lower middle market investment bank providing mergers and acquisitions advisory services to business owners, entrepreneurs, family offices, and investors across the United States. Our dedicated team of professionals combines extensive industry experience, technological innovation, negotiation savvy, and key relationships to deliver exceptional execution. Calder’s services include mergers and acquisitions advisory, private funds and capital markets advisory, and business valuations. To learn more, please visit http://caldergr.com