Beyond financial performance, buyers and their advisory teams will dig deeply into the following areas when analyzing any service business M&A transaction. In the preparatory phase, Calder will work with you to document, highlight, and explain these areas of the business and get prepared for intense buyer scrutiny.

• Service quality and delivery: Assessing the target company's service quality standards, customer satisfaction levels, and delivery processes is crucial. Buyers will evaluate factors such as service metrics, customer feedback, service-level agreements (SLAs), and any potential risks or issues that could impact service quality.
• Service offerings and expertise: Buyers will need to understand the target company's service offerings, unique expertise, and differentiation in the market. Buyers will review the range of services provided, the expertise of the workforce, and any intellectual property or proprietary methodologies that contribute to the company's competitive advantage. 
• Client base and contracts: Buyers will consider the target company's client base, key accounts, and contract relationships. Factors like client concentration, contract terms, contract duration, client satisfaction levels, and any potential risks related to client retention or loss will be carefully evaluated.
• Information technology systems: Buyers will assess the effectiveness and security of data management processes, software applications, and any potential integration challenges with the acquiring company's IT systems.
• Brand reputation and customer loyalty: Brand reputation and customer loyalty will be of high interest to potential buyers. Buyers will assess the company's market positioning, and brand recognition, consider customer reviews and testimonials, and any potential risks to the brand's reputation.
• Strategic Fit: To determine strategic fit, buyers will consider factors such as market presence, customer base, service offerings, geographic reach, and synergies that can be achieved through the combination.

There are a few reasons why digital marketing businesses do not sell, and Calder has worked diligently to eliminate these primary obstacles to selling.

The number one reason that businesses do not sell is because there is a significant gap between what the seller wants and what the market provides in terms of valuation. Calder eliminates this by conducting a thorough “market-informed” business valuation before we ever ask for a client engagement. Because we often sell more than a dozen service businesses per year, we have an accurate pulse on valuation multiples, deal structure, and the state of the buyer pool. We combine our proprietary on-market data and insights with thorough research utilizing trusted valuation resources for businesses that match your specific digital marketing niche and financial performance. The result is a precision valuation analysis that reflects the market feedback you will receive from buyers if you decide to proceed with a sale process.

At this point, it is 100% up to you whether to move forward with a sale process. If the valuation is not where you need or want it to be, Calder can point you to resources that can help you to improve your valuation or we can all simply wait. Sometimes, digital marketing business owners decide to wait 1-2 years before selling once they understand what drives valuation. At no point during our initial valuation process will you feel compelled to make a decision that is not in your best interest. Calder Capital is in it for the long game, and this means standing shoulder-to-shoulder with our prospects and clients and helping them to make the best decisions for their businesses and lives.

The second reason that digital marketing businesses do not sell is the quality of their financial records. When buyers and lenders are making critical decisions to pay and loan, respectively, millions of dollars, it is critically important to them that they can trust the information that they are receiving from the seller. Periodically, we receive information from digital marketing business owners that contains errors or is not prepared to the accounting standards that buyers expect. During our business valuation exercise, if we identify areas where buyers are likely to be confused or have questions, or we encounter impasses with respect to obtaining the types of financial records that buyers and lenders will expect during the analysis and due diligence phase, we will discuss these with you and help you work with your CPA or other accounting advisors to prepare the business appropriately for the type of scrutiny that a sophisticated buyer will bring.