Can Deal Characteristics in Q4 2021 Help Up Understand What 2022 Has in Store? The IBBA and M&A Source recently published their Q4 Market Pulse Report giving insight into the trends that can be expected in the current market for mergers and acquisitions trends 2022. The Q4 survey was conducted from January 1-15th, 2022, and was completed by 416 business brokers and M&A advisors covering 379 transactions. We have summarized some of the key topics below and offered our own insights. While the topic on everyone’s mind is Russia’s invasion of Ukraine, according to certain experts, the effects on US domestic lower and middle-market dealmaking are likely to be limited. Let’s begin by looking at common elements across most transactions. Seller Employment / Consulting Agreements Post-Sale It is nearly universal that the seller will be asked to remain with the business post-sale for a transition period. Some agreements include a prolonged transition period during which the seller is either hired on as an employee and paid a salary and benefits, or is retained as a consultant. Buyers and sellers may want to arrange an employment contract for a number of reasons, such as when the business is reliant on the […]
How Long Does it Take to Sell a Business?
If you want to buy/sell in 2022, it’s time to get going in Q1! We get it, Q1 is a drag. It’s cold in the Midwest, buyers and sellers often take extended vacations to the south, and financials and tax returns need to get done. These factors combine to slow down the start of the year when it comes to getting business owners to engage to sell. Meanwhile, buyers generally expect and are told that a spring rush will come. This is not to say that they are waiting patiently but it can be tempting to see the next listing that comes out. The grass can certainly look (and sometimes be) greener. However, if you want to get a transaction done in 2022, it’s time to move. According to the most recent IBBA Market Pulse Report covering Q4 2021, the average time it takes to sell a business is 6-10 months. If you remove the smallest deals (<$500K), it’s 8-10 months. It’s important to consider the factors that lead to transactions taking this long. When a seller engages with an M&A Advisor, it often takes 30-60 days to get the sale materials prepared. Now, there are some brokers that spend […]
January’s Off-Market Sellers
We hope that January was a fruitful start to the year for you! Last month, our buy-side team generated 44 proprietary leads, resulting in 30 conference calls and site visits and 5 IOIs/LOIs submitted. It was a good start to 2022 and we’re looking to build on our momentum. How do we do this? It’s 90% elbow grease combined with 10% data science. We combine a personal touch, marketing automation, and data analytics to hone best practices with the tedious work that no one wants to do – lots of research, telephone calls, and email outreach. A question our team gets asked regularly is, “is it a good time to buy?” While there is always uncertainty about the economy, inflation, interest rates, politics, etc., it is almost always the right time for a buyer that has a solid strategy and sticks to it. Our team has found that in most cases it’s the approach rather than the attempt to time the market that leads to a successful acquisition. Don’t sit on the sidelines waiting for it to be the “right time.” That time may never come. Are you curious to see how many potential sellers match your criteria? Let us […]
2021 Off-Market Sellers: Recap
Before jumping headstrong into 2022, let’s reflect on our accomplishments in 2021. Calder’s buy-side team generated 360 proprietary leads, resulting in 215 conference calls and site visits and over 37 IOIs/LOIs. That is a hair under one proprietary lead per day! How do we do this? It’s 90% elbow grease combined with 10% data science. We combine a personal touch, marketing automation, and data analytics to hone best practices with the tedious work that no one wants to do – lots of research, telephone calls, and email outreach. We are proud to generate so many leads for our clients, but even more gratified that our clients are taking these opportunities seriously as they pursued a call or meeting with 59.7% of them. In order to beat our records in 2022, the Calder buy-side team has recently welcomed new Director Hannah Nabhan and Associate Parker Schaap! We are thrilled to have both of these young studs join our team and lead the way this year! There is undoubtedly a wave of sellers building as more owners reach retirement age and experience severe burnout. While not all of these sellers are ready to admit this and go to the market, they are remain very receptive to […]
West Michigan Petroleum Equipment Company Acquired by D.H.T. Holdings, Inc.
Calder Capital is thrilled to announce that Rohr Gasoline Equipment, Inc., of Byron Center, MI has been acquired by D.H.T. Holdings, Inc., of Reese, MI. Established in 1940, Rohr Gasoline Equipment provides equipment installation and repairs for service stations in the greater Grand Rapids area, including tank installation, tank removal, testing, card readers for fuel tracking, and retail communication equipment. Mitch Veenstra became an owner in 1995 and assumed sole ownership of Rohr in 2004. After over 25 years in the business, he is looking forward to adventuring near his home in Colorado and enjoying more time with his kids and grandkids. “Mitch set up Rohr in a prime position for his exit,” remarked Garrett Monroe, lead Mergers and Acquisitions Advisor to Rohr. “He cultivated a solid, independent team with a hardworking, loyal, and positive culture. We could not have found a better fit for Rohr’s continued success. Through this acquisition, Rohr employees will benefit from even more opportunities for personal and financial growth within D.H.T. Holdings.” D.H.T Holdings is an employee-owned transportation and logistics company, with a portfolio that extends into landscaping, excavation, brokerage, and other industries. The acquisition of Rohr was a strategic one for D.H.T. “Calder […]
Positive Chimney & Fire Place of Cadillac, MI Acquired by Individual Investors!
Calder Capital is pleased to announce that Positive Chimney & Fire Place of Cadillac, Michigan has been acquired by individual investors. Positive Chimney was acquired by four of the Company’s employees –Chris Richardson, Mike Gamble, and Cody and Kassie Richardson. Founded in 1982, Positive Chimney provides Northwest Michigan residents with professional sales, installation, and service for all hearth and home needs. After over 40 years in the business, partners and founders Herb Smith and Dave Nederhoed are ready to retire. They engaged with Calder Capital in April of 2021 in order to find the right succession plan. Shane Kissack, Mergers and Acquisitions Advisor at Calder Capital, served as the lead advisor on the transaction. “Before we formally launched to market, we had the opportunity to engage with key employees and learned there was the skill and desire in-house to transition the company to the next generation,” remarked Kissack. “Within months the buyers and sellers were under a signed Letter of Intent. Both the buyers and sellers had the same goal so the process went very smoothly. I am very happy to have helped the company transition internally.” “I’m thrilled to know Positive Chimney will be taken over by several of […]
Calder Capital Buy-Side Client Update: November 2021
Have you been satisfied with your deal flow in 2021? Any desire to spend less time researching and sending emails and more time closing deals in 2022? Our buy-side team continues to offer guaranteed leads for our clients – leads that are off-market, willing to talk to you directly about selling, and those that meet your requirements. Our clients know they are getting what they pay for. Let us show you exactly how many prospects match your target criteria. Complete our Buyer Criteria form and in a few succinct slides we will show you not only how many prospects there are but also where they are located. ***In the Holiday spirit, Calder is offering a special discount for buyers that engage us in the month of December. Follow the Contact information below to learn more.*** Check out some of the off-market leads our buy-side team discovered for our current buy-side clients‘ mandates below. How do we do this? It’s 90% elbow grease combined with 10% data science. We combine a personal touch, marketing automation, and data analytics to hone best practices with the tedious work that no one wants to do – lots of research, cold calls, and email outreach. Select Seller Leads Developed […]
Construction Tool & Supply of Warren, Michigan Acquired by an Individual Investor!
Calder Capital is thrilled to announce that Construction Tool & Supply of Warren, Michigan has been acquired by an individual investor. Founded by Bill Parkhill in 1978, Construction Tool & Supply markets and distributes specialty fasteners and fastening supplies to contractors doing industrial, commercial, and institutional construction. After over 40 successful and rewarding years in the business, Bill is ready to enjoy retirement with his spouse, Kathy. Bill engaged with Calder Capital in the spring of 2021 to find the ideal successor. Construction Tool & Supply was acquired by Sohail Tootla of Detroit, Michigan. Sohail has experience in Operations & Project Management, Corporate Strategy, and Business Administration. “I am honored to purchase this wonderful business,” commented Sohail Tootla. “I value Bill’s philosophy and business ethic. It was immediately apparent to me that CTS is more than just a company–it is a significant part of Bill’s life. My vision is to continue the legacy and reputation of Construction Tool & Supply for generations to come.” Garrett Monroe served as the lead Mergers and Acquisitions advisor to Construction Tool & Supply. “Bill and Kathy Parkhill have invested an entire lifetime into Construction Tool & Supply, and I am enthusiastic that the […]
Calder Capital Welcomes Jakob Simonds to the Central Services Team!
Calder Capital is pleased to welcome Jakob Simonds as Lead Analyst of our Central Services team. Jakob joined our team for the Winter/Spring 2021 Internship program. He’ll be staying on as financial analyst and lead of new client onboarding. While you may remember him as our Guacamole Hater, there is far more to share about Jakob than his aversion to avocados. A recent graduate of Grand Valley State University, Jakob is a Grand Rapids native, a University of Michigan sports enthusiast, and a lover of the outdoors. He takes his coffee black, and yet on par with his willingness to try new things, he’s looking forward to further espresso bar training from Calder’s in-house baristas. While Jakob’s day-to-day responsibilities have remained relatively unchanged from his time in the internship program, Jakob has assumed a leadership role. “I spend time overseeing the work of the other analysts and interns, and onboarding new clients,” he says. “I’m still doing a lot of the same daily tasks (creating financial models, valuations, and comprehensive marketing materials) but I would say that overall I’m working on a lot more of the big-picture initiatives.” Jakob is excited to continue growing along with Calder. “I would also […]
Calder Capital Welcomes Jonathan Dykstra to the Central Services Team!
Calder Capital is pleased to welcome the newest addition to our Central Services team, Jonathan Dykstra. Calder Capital’s Central Services team works behind the scenes to get each client to market and get as many buyers’ eyes on them as possible. The Central Services team is comprised of dedicated and trained financial analysts who compile business valuations and create comprehensive marketing packages for Calder’s sell-side clients. As Calder continues to grow, Central Services is the scaffolding that keeps the foundation strong. A recent graduate of Grand Valley State University, Jonathan earned a Bachelor of Business Administration degree in Finance and Accounting. Jonathan is fresh out of college, but he brings with him an ambition and an experience base that is a great asset to Calder’s work. Jonathan joined the team in September as our newest Financial Analyst. Prior to joining Calder, Jonathan served as an Equity Research & Valuation analyst at Seamstrong Advisors, and as the Vice President of Portfolio Management of GVSU’s investment club. He devotes much of his time to teaching valuation and financial analysis to younger finance majors. Outside of his Finance and Accounting career, Jonathan has dabbled in filmmaking, and he has a deep appreciation for […]