Calder Capital is proud to announce that the sale of Action Water Sports led by Calder Advisor, Pankaj Rajadhyaksha, has been honored by the Crain’s M&A Awards as the 2024 Retail Deal of the Year Award!

Crain’s presents the 11th annual M&A Deals and Dealmakers Awards to spotlight best practices and excellence related to mergers, acquisitions, capital formation, and other types of deal-making throughout Western Michigan. Crain’s recognizes eleven categories for their Deal of the Year awards, and Calder Capital’s client, Action Water Sports, rose to the top of the Retail category!

“While M&A activity was down overall last year from recent record highs, the winners we’re celebrating here prove that good deals and exceptional leadership can happen in any market. It’s a testament to the strong business environment here in West Michigan that should set us up for even more success in the future,” remarked Joe Boomgaard, Editor at Crain’s Grand Rapids Business.

Action Water Sports was founded in 1990 with a single location that grew into a multi-state four-location boat and powersports retailer. Founder Jerry Brouwer wasn’t looking to sell Action Water Sports when a representative from Doug and Maria DeVos’ family office approached him in late 2021, but he soon realized it could be the right fit at the right time.

Calder Capital’s Pankaj Rajadhyaksha led the transaction and served as the Exclusive M&A Advisor to Action Water Sports.

Rajadhyaksha said he encouraged Brouwer to seek out other offers, but buyers of dealerships of this size are typically limited to two or three publicly traded companies. For Brouwer, the thought of transitioning the business to a large corporation was unappealing. He also had considered an ESOP but ultimately ruled out that option.

“At the end of the day, (Brouwer) said, ‘If we can put a deal together with (Continuum), then we’ll do it, and if it’s fair, we’ll go ahead. Otherwise, we’ll continue to operate the business,'” Rajadhyaksha recalled.

With those marching orders, deal discussions started in earnest in late 2021.

The deal was complex for a number of reasons. It involved multiple entities, including five real estate LLCs and five operating companies, each with its unique ownership structures and challenges. The deal also involved eight different property appraisals and valuations complicated by ongoing construction. Ensuring fair valuations while keeping everyone up to speed without overcomplicating the transaction proved to be a delicate balancing act.

“People have different expectations and timelines. … On the one hand, you want to keep everyone informed, but you also don’t want to have too many cooks in the kitchen,” Pankaj commented. “That was something that we had to balance, keeping all the shareholders abreast of what was going on.”

Rajadhyaksha shared that the buyers were “great to work with.”

“There’s always some back and forth and some emotions and this and that, but they were very collaborative,” he said. “(In) some deals, the negotiations can get a little contentious. That wasn’t so much the case here.”

Pankaj Rajadhyaksha

“I’d love to say there was one shining moment that really helped pull the deal over the finish line. But it really was a long, consistent, grind, often from 6 a.m. to 2 a.m. day after day after day.  And so, it was meant to be. In March of 2023, everything came together and a deal that no one was originally planning on happening, happened.”

“This transaction wasn’t just a business deal; it was a culmination of a relationship spanning over 24 years. As Jerry and Kris’s former banker, I witnessed their growth from early successes. It was sort of a full-circle moment. Being a part of something that was their most significant financial and emotional decision, and transaction, was a privilege that’s not taken lightly,” Pankaj added.

Jerry and Kris’s decision to work with Continuum Ventures, guided by the DeVos family, was a strategic choice aligning with their values and vision for Action Water Sports. The DeVos family’s involvement, through their commitment to local business growth and shared values, was a crucial factor in this decision.

Continuum Ventures CEO Mike Cazer told Crain’s last year that he and the DeVoses hope to eventually add new Action locations.

“We’re really enthusiastic about the amount of growth potential,” he said.

“Pankaj, thank you for your guidance and steady hand through this process,” Jerry Brouwer commented in a Calder Capital press release, “It’s fantastic that our decades of friendship have culminated with such a successful outcome.” 

“We are proud to have facilitated a strategic acquisition of Action Water Sports, and we’re very pleased that Pankaj and Jerry were awarded this well-deserved recognition!” commented Calder’s Managing Partner, Max Friar. “Pankaj, your grind and commitment to navigating this complex transaction was remarkable.” 

You can learn more about Crain’s Deals and DealMakers awards by visiting https://www.crainsgrandrapids.com/news/ma-deals-and-dealmakers-awards/.

About Calder Capital

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.