The 2022 Q4 IBBA Market Pulse report recently came out and it revealed some interesting shifts in the marketplace.
Check out the graphic below on the change in seller sentiment. Broadly in Q4, sellers felt like it was the worst time to sell in 10 years, even worse than in 2020.
Ouch. With sentiment tanking across the board, would-be sellers are holding on. Does your new deal flow feel slower to start the year? It’s starting to make sense why.
Yet, the rationale for holding on doesn’t appear to be unrealistic valuation expectations. Take a look at the next graphic, depicting average multiples by deal size!
Multiples for transactions between $5M-$50M dropped from an average of 6.0x to 4.1x. The remaining multiples are generally stated in line with historical averages.
In general, sellers are becoming realistic with valuation expectations in today’s economic climate. The Calder Buy Side team has already had multiple successful buy-side transactions in 2023.
Now is the time to strike! Don’t wait until these sellers regain confidence and decide to actively market their business for sale. If they are not coming to you, you must go to them!
Let’s work together to find these owners before they hit the market!
Recent Buy-Side Closings
Performance Plus acquires Sparkle Car Care
Under Hannah Nabhan’s steady guidance, repeat buy-side client, Performance Plus has done it again! Performance Plus, owned and managed by brothers, Kyle and Justin Klingenberg, has skyrocketed to success with now over 49+ retail locations across Michigan.
When asked what excited Kyle Klingenberg most about the acquisition, he shared, “There are strong synergies between the two companies which provide new markets for Performance Plus. We are excited to acquire a long-standing successful family business and look forward to driving its continued growth.”
Tool Tech acquires Cameron Tool
Setting the bar high, Calder Advisor Matt Uhl, closed Calder’s first buy-side deal of the year between our client, Tool Tech, and seller, Cameron Tool. A true testament to trusting the process, Tool Tech had made several offers on other businesses before inking the LOI with Cameron Tool.
“It’s been an absolute pleasure working with the Tool Tech team over the past several months,” shared Matt regarding the transaction, “I am so grateful for the opportunity they gave Calder to bring them some truly outstanding companies. After careful consideration, we couldn’t be more thrilled with the outcome – Cameron Tool Corporation is the perfect match!
Why work with Calder?
Calder works with clients on a guaranteed basis, so if we don’t deliver our clients don’t pay. Check out some of our current clients here.
Alternatively, if you enter your criteria here our system will automatically alert you to any current or future sell-side opportunities we are representing that are of interest to you. Be advised, these engaged sellers are represented by us and selling through a competitive bid process.
Ready to start 2023 off on the right foot, filling your pipeline with qualified acquisition candidates?
Contact Sam Scharich at [email protected] or 616-970-6124 and reserve your spot before our team fills up!
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