With the successful sale of Thread-Craft, the Calder Capital/SBDA team completed transaction #12 of 2024 and continued to set the stage for another very strong year.
“In Q1, we felt the effects of a slow first half of 2023 in terms of signing on sell and buy-side clients,” noted Max Friar, Calder’s Founder. “Our revenue for Q1 was at a record on the backs of some larger deals, however, on a closing basis we are down one closing from this time in 2023.”
Friar continued, “Closed deals and revenue should pick up pace in Q2 strongly off the back of a very strong second half of 2023 in terms of new client engagements.”
Here is an overview of the transactions closed thus far in 2024 (sell-side unless otherwise noted):
| Lloyd’s Cabinet Shop, Inc. | Pinconning, MI | Manufacturing |
| Furniture Manufacturer | Edmore, MI | Manufacturing |
| Established General Contractor | Midland, MI | Construction |
| Primo Hoagies | Edwardsville, PA | Restaurant |
| Bear Stewart Corporation (Buy-Side) | Chicago, IL | Manufacturing |
| Machine Shop | South Bend, IN | Manufacturing |
| Once Upon a Child | Clarksville, TN | Retail |
| Rehabilitation Health Center | Ann Arbor, MI | Healthcare |
| American Gear & Tech Tool | Westland, MI | Manufacturing |
| Automotive Metal Manufacturer (Buy-Side) | Portland, MI | Manufacturing |
| Cookies by Design | Grandville, MI | Food Service |
| Thread-Craft, Inc. | Sterling Heights, MI | Manufacturing |
Regarding industries, Calder has noticed that there is a distinct desire for niche, established manufacturing companies. With seven of 12 transactions being manufacturers, Calder’s Q1 transactions were skewed heavily toward manufacturing, which makes sense given that manufacturing has been recovering since COVID-19.Â
A couple of trends that may be emerging based on Q1 activity: Calder’s Buy Side team engagements have spiked 5x vs Q1 2023. This is huge growth based on the growing recognition of our ability to source off-market sellers combined with an overall lack of quality deal flow in the lower Middle Market. Many of these buyers are seeking industrial and manufacturing opportunities, further suggesting that manufacturing is in demand and there are not a lot of good marketed opportunities presenting themselves.Â
Another trend has been increased offers on listed businesses for sale. In Q1, we experienced nearly back-breaking interest from the market. Our previous record for offers received was 28. In Q1, we had clients that received 32, 49, and 53 offers. Additionally, we had weeks where more than 1,000 CIMs were requested for our sell-side clients.Â
Seller sentiment remains low by historical standards. Many are choosing to sit on the sidelines, and therefore, sellers who are choosing to sell presently are therefore receiving a lot of attention from buyers.Â
Calder continued to invest heavily in its team and infrastructure in Q1 2024. We welcomed many new team members, including:
- Steve Wilcox, M&A Advisor - East Lansing, MI
- Riley Hagen, Sell-Side Analyst - Grand Rapids, MI
- Onasis Krstevski, Sell-Side Analyst - Grand Rapids, MI
- Nicholas Browning, Sell-Side Analyst - Grand Rapids, MI
- Greg Weess, Sell-Side Associate - Grand Rapids, MI
- Logan Theodorou, Buy-Side Associate - Columbus, OH
- Alex Flechsig, Buy-Side Analyst - Grand Rapids, MIÂ
- Jared Friar, Business Advisor - Grand Rapids, MIÂ
We also celebrated the promotions of existing team members in Q1, including:
- Garrett Monroe, promoted to Sell-Side Director - Grand Rapids, MI
- Jakob Simonds, promoted to M&A Advisor - Nashville, TN
- Jake McDonald, promoted to M&A Advisor - Chicago, IL
- Jonathan Dykstra, promoted to Associate - Grand Rapids, MI
“Calder is focused on continuous recruiting and bolstering our team in areas that are strategically important to our growth,” noted Max Friar. “Growth in Ohio, Chicago, and Metro Detroit is key to our plans for 2024 and we have already made excellent strides in this respect.”
Topping off Q1, Calder received a number of significant recognitions including being recognized for a fourth consecutive year on Inc 5000 lists, placing #73 in the Midwest for growth in 2024. Calder was named a West Michigan Best and Brightest Company to Work For for a second time. Additionally, the sale of Action Water Sports, led by Calder Advisor, Pankaj Rajadhyaksha, was awarded as Crain’s Retail Deal of the Year.
About Calder Capital, LLC
Founded in 2013, 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 exhibit exceptional execution. Calder’s services include mergers and acquisitions advisory, private funds and capital markets advisory, and business valuations.