With the successful acquisition of Warren, MI-based Central Oil LLC by Major Brands Oil of Holland, MI in November, the Calder Capital/SBDA team achieved a once unfathomable number of 30 successful transactions in 2020.
“I continue to be just amazed at our teams’ performance this year,” Calder Founder Max Friar praised. “Year-over-year, the number of M&A transactions industrywide is down ~15% yet we are up 70+% vs this time last year!”
Friar continued, “From a sentiment standpoint, I believe that sellers are still generally feeling down about selling in what they perceive to be a down market. Now, this is fair if they have been hit by COVID, however, if their business has been stable or better, we are seeing daily evidence in the form of massive buyer interest and the receipt of multiple offers, that now is a fantastic time for them to sell. After all, private equity and family office buyers maintain significant liquidity and the pandemic has produced a new generation of entrepreneurs in the form of people whose jobs and businesses have been disrupted.”
In terms of the types of transactions that are getting done by Calder/SBDA in 2020, manufacturing and service lead the way at 33% and 30% of deals, respectively. Restaurants have accounted for 17% of sales and distribution, construction, and retail round out the bottom.
Here is a complete list of Calder/SBDA closings through October 31, 2020.
| Client | City of Client | Advisor | Buyer Type | Industry | |||
| Laser Access, Inc. | Grand Rapids, MI | Calder | Individual | Manufacturing | |||
| Topps Safety Apparel, Inc. | Rochester, IN | Calder | Strategic | Manufacturing | |||
| Premier Paper & Supplies, Inc. | Grand Rapids, MI | SBDA | Strategic | Distribution | |||
| Family Wellness Center | Midland, MI | SBDA | Individual | Service | |||
| Family Fitness | Holland, MI | SBDA | Individual | Service | |||
| D.C. Martin & Sons Scales, Inc. | Grand Rapids, MI | Calder | Strategic | Distribution | |||
| Boelcke Heating & Air Conditioning | Stevensville, MI | Calder | Individual | Service | |||
| Foxbright | Grand Rapids, MI | Calder | Individual | Service | |||
| Campbell Murch Memorials | Mattawan, MI | SBDA | Strategic | Manufacturing | |||
| College H.U.N.K.S. | Des Moines, IA | SBDA | Individual | Service | |||
| 2B Studios | Ada, MI | SBDA | Individual | Service | |||
| Spectrum Health Ventures | Wyoming, MI | Calder | Strategic | Healthcare Manufacturing | |||
| Graphics Embossed Imaging | Grand Rapids, MI | Calder | Individual | Manufacturing | |||
| Dickey’s BBQ Pit | Novi, MI | SBDA | Individual | Restaurant | |||
| Stonewall Road Automotive Group, LLC | SE Michigan | Calder | Private Equity | Service | |||
| Electric Motor Service | Grand Rapids, MI | SBDA | Individual | Service | |||
| A&W Restaurant | St. Charles, MN | SBDA | Individual | Restaurant | |||
| Corridor Coffee | Grand Rapids, MI | SBDA | Individuals | Restaurant | |||
| CG Witvoet & Sons, Inc | Grand Rapids, MI | Calder | Investment Group | Manufacturing | |||
| Elite Tooling | Kalamazoo, MI | Calder | Strategic | Manufacturing | |||
| Waseyabek Development Corp | Muskegon, MI | Calder | Strategic | Manufacturing | |||
| Environmental Products Manufacturer | Candler, GA | Calder | Strategic | Manufacturing | |||
| Castle Brewing Co | Greenville, MI | SBDA | Strategic | Restaurant | |||
| Bridal Gallery | Grand Rapids, MI | SBDA | Strategic | Retail | |||
| Integrated Manufacturing Concepts | Ceresco, MI | Calder | Individual | Manufacturing | |||
| Oinks Dutch Treat | New Buffalo, MI | SBDA | Individual | Restaurant | |||
| Foam Works | Ludington, MI | SBDA | Individual | Construction | |||
| Window Genie | Olathe, KS | SBDA | Individual | Service | |||
| Days Machinery Movers | Elkhart, IN | Calder | Strategic | Service | |||
| Major Brands Oil | Holland, MI | Calder | Strategic | Distribution |
Overall, from an industry standpoint, the breakdown of deals has been as follows:
- Manufacturing – 33%
- Service – 30%
- Restaurant – 17%
- Distribution – 10%
- Construction – 7%
- Retail – 3%
18 transactions have been in Western Michigan, 5 in out-state Michigan, and 7 in other states including Indiana, New York, Iowa, Georgia, Kansas, and Minnesota. Among the buyers, 16 have been individuals, 12 have been strategic buyers, and 2 have been private equity/investment groups.
Friar concluded, “With the election past us and heading into the colder months, we are optimistic that things will continue to settle down and that buyers and sellers will continue to transact. We have been seeing a bit more in terms of distressed deals enter the market, however, it is not by any means at alarming levels. We are pushing hard for 35 deals yet this year and have the number of LOIs to get things there!”
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.