Introducing Drew Peluso to our Summer 2022 Semester Internship Program! Here at Calder Capital, we thrive on our culture of learning and curiosity, which is why our internship program is so important. In fact, many of our advisors came to us as undergraduate interns, green and eager to learn! Our internship program is not coffee runs and paper pushing. Our interns work hard behind the scenes at every stage of our M&A process. They keep our prospecting process moving, they have their hands in every financial analysis and valuation, and they collaborate to put together our Confidential Information Memorandum for each client that’s launched to market. Since they’re such an integral part of our team, we want to introduce who’s working behind the scenes for the summer of 2022. We’re Proud to Introduce Drew Peluso! Drew is a Senior at Michigan State University. He’s studying Finance, making him a natural fit here at Calder Capital. He is a Michigan native and grew up in Troy, Michigan. Drew has always been very entrepreneurial minded. In high school, he even started up a small business where he sourced shoes for customers and even some professional athletes. After college, he plans on working […]
Prediction: What Can Buyers & Sellers Expect?
Over the past 2-3 months it seems like the mood in the M&A markets has been “hurry up and wait”. Sell-side prospects want to talk, want to meet, express the desire to sell, do a valuation, and then they most often sit. We have felt this way on the buy-side as well. Lots of “yes, we’re interested but want to wait a bit”. This isn’t just a feeling either. Compared to 2021, Calder’s engagement rate on valuation presentations/pitches delivered has plummeted from 62% to 38%. While our number of new clients is up vs 2021 during the same period, we have had to grind a lot harder. So, why are owners not moving forward? Personally, I think the talk of the recession and the stock market tanking is causing significant unease with business owners and some buyers. Many of these sellers are feeling margin pressure in their businesses, are invested in the market, and are also noticing the rapidly rising cost of everything. It’s tough to cut off your cash flow stream even if it’s growing weaker, when your net worth is getting hammered on and suddenly the amount you need to retire becomes a bit foggier. Most M&A advisors […]
April’s Off-Market Sellers
The Fed is hiking interest rates, inflation is eating away at debt capital investments, and stock markets are down (the S&P is off to its worst start since 1939 – down 13.3% YTD). Where should investors be looking to deploy capital? According to the 2022 Private Capital Markets Report (published last week), 30% of respondents answered “Direct [Business Ownership] Investments” when asked what are the assets with the best risk/return trade-off currently. Calder is seeing that buyer sentiment prove to be true as the interest and competition in our listed opportunities remains sky-high. Our buy-side team can help buyers circumvent many of these challenges and get them connected with sellers who do not want to go through a limited auction process. Take a look at the “Select Seller Leads” below, these are all companies we sourced in April that are engaged in one-on-one conversations with a Calder buyer! 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 April 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, […]
March’s Off-Market Sellers
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 […]
Inc 5000 Regionals 2022: Calder Capital Ranked #61 in Midwest
With a Two-Year Revenue Growth of [XX Percent], Calder Capital Ranks No. 61 on Inc. Magazine’s List of the Midwest Region’s Fastest-Growing Private Companies.
Mergers and Acquisitions Trends 2022: An Analysis of Q4 2021
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 […]