With the successful sale of an electrical contractor and food service distributor on June 26th, the Calder Capital/SBDA team completed transactions #19 and #20 of 2024.
“We feel very good through the first half of the year,” noted Max Friar, Calder’s Founder. “The first half of 2023 was a bit slow in terms of engaging new clients and that has fed into 2024’s initial results. Our revenue and closed deals are down slightly YTD vs 2023, however, we have a record 28 clients under LOI, and with that, record potential fee revenue.”
Friar continued, “Our momentum vs 2023 at this time is much stronger. Comparatively, we have engaged 15 more clients (37 in 2024 vs 22 in 2023), which has positioned us for continued growth into 2025.”
Here is an overview of the transactions closed thus far in 2024 (sell-side unless otherwise noted):
| SELLER | LOCATION | INDUSTRY |
|---|---|---|
| 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 |
| Advertising Firm | Ann Arbor, MI | Service |
| OJS Building Services, Inc. | Mishawaka, IN | Construction |
| Flooring Retailer | Northern, MI | Distribution |
| Concrete Supplier | Western, MI | Distribution |
| Medical Equipment Distributor | Northern, MI | Distribution |
| Food Service Distributor | Western, MI | Distribution |
| Electrical Contractor | Western, MI | Construction |
Regarding industries, distribution companies led the way making up 50% of Calder’s Q2 closings.
A couple of trends that may be emerging based on first half activity: Calder’s Buy Side team engagements have spiked nearly 5x vs 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 and an abundance of dry powder on the sidelines. Many of our buy-side clients 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.
A continuing trend throughout Q2 has been increased offers on listed businesses for sale. During the first half of the year, we experienced nearly back-breaking interest from the market. Our previous record for offers received was 28. Thus far in 2024, we have 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.
Seller sentiment remains low by historical standards. Many are choosing to sit on the sidelines, and therefore, business sellers who are choosing to sell presently are therefore receiving a lot of attention from buyers.
In Q2, Calder had much to celebrate. The firm opened offices in Florida and Tennessee, celebrated the addition of Office Admin, Mallory Pohl, was honored as the Best Business Investment Firm in the 2024 Best of Michiana Business Awards, and was honored as a 2024 National Best and Brightest Company to Work For.
Friar concluded, “The crazy part of all of this is that we are operating at approximately 60%, meaning that our team has the capacity to take on easily 20 clients without breaking a sweat. Calder is open for business and plans to continue shattering records!”
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.