Calder Capital/SBDA Close 35th Transaction of 2021

With the successful closing of Rohr Gasoline Equipment during the first week of December 2021, the Calder Capital/SBDA team completed transaction #35 for 2021 and continued to march steadily forward towards breaking 2020’s closings record. 

“We’ve felt a change in the transaction atmosphere starting in Q3 and persisting into Q4,” noted Max Friar, Calder’s Managing Partner. “First, we have seen sellers really start to come out strongly.  My feeling, which has been corroborated by national surveys, is that COVID burnout, a constant onslaught of news about new COVID variants combined with materials and labor shortages, is having a deep wearying effect on business owners. As a result, many are looking to exit in the near term. This, in combination with lenders across the Midwest waking up and realizing that the significant government fees earned by CARES Act programs are going away, is making for a great small/middle-market M&A lending environment.”

Friar continued, “At Calder, we are really cruising along. Revenue is up 65% versus 2020 and 17% ahead of budget (through November). Our recurring revenue is up 140%, which indicates that our sales team is performing exceptionally well, signing on new clients at a rapid pace, which will result in more closed deals into Q1 and Q2 2022. While client signing is consistent with quarterly averages, we are presently fielding 16 valuation engagements, which is very high for this time of year.”

In terms of the types of transactions that are getting done by Calder/SBDA in 2021, service (31%), construction (23%), and manufacturing (17%) transactions lead the way with restaurant and distribution rounding out the industry list.

Here is a complete list of Calder/SBDA closings through December 3, 2021.

Overall, from an industry standpoint, the breakdown of deals has been as follows:

• Service – 31%
• Construction – 23%
• Manufacturing – 17%
• Restaurant – 14%
• Distribution – 14%

24 transactions have been in Michigan and one each in the following states: Indiana, Ohio, Illinois, Idaho, Texas, California, North Carolina, New Jersey, Oregon, and Tennessee. Among the buyers, 21 have been individuals, 11 have been strategic buyers, and 3 have been private equity/family offices.

Friar concluded, “I continue to feel that many owners are reaching the point of extreme burnout and I believe that buyers will have more choices heading into 2022. I expect persistent low interest rates to continue to help sellers, however, more businesses will go up for sale, evening out the market a bit.”

About Calder Capital, LLC

Founded in 2013 by Max Friar, Calder Capital, LLC is a lower middle-market M&A Advisory Firm focused on representing buyers and sellers with enterprise value from $2-100MM primarily in the segments of manufacturing, business services, and distribution. Calder represents sellers primarily in the Midwest and buyers nationwide. 

About Small Business Deal Advisors, LLC

Founded in 2017 by Max Friar and Matthew Baas, Small Business Deal Advisors, LLC is a business intermediary firm focused on serving small, traditionally underserved sellers of businesses with enterprise value generally less than $1MM. SBDA’s clients are customarily franchised re-sales, light industrial, restaurants, and business and personal services. SBDA represents sellers nationwide and in Canada. 

If you are interested in selling your company, please contact us confidentially.