Closed transaction · June 2023
Nova Magnetics, Inc.
MDR & Associates took Nova Magnetics, Inc., an electrical component manufacturer in Garland, through to closing in June 2023.
The transaction
- ClosedJune 2023
- SectorManufacturing & industrial
- LocationGarland, Texas
- Founded1981
- Represented byMDR & Associates
- Todaynovamagnetics.net
The company today, in its own words. Designer and manufacturer of custom transformers and inductors, with engineering and small-volume, large-size production at its Garland, Texas campus in operation since 1981.
The sale
How it ran
Nova Magnetics had manufactured electrical components in Garland for 45 years, with finished products also produced at its operation in Mexico.
It was acquired by Electro Technik Industries, a group that already owned 16 electrical component companies — a strategic buyer who wanted the capacity and the location. Due diligence took 60 days.
Michael Rubin, CEO of MDR & Associates was really professional and critical to us closing this transaction. He was indeed a great buffer in the middle of the both of us.
What decided the price
What buyers look at in a manufacturing company
Adjusted EBITDA, not revenue
Earnings are recast to remove owner compensation above market, personal expenses and one-off items. Every add-back needs a paper trail, or a buyer strikes it out.
Equipment condition and age
A buyer prices the capital expenditure they will face in the first three years. Deferred maintenance comes straight off the offer.
Real estate, in or out
Owning the building can raise the total consideration, and it can also complicate the deal. It is usually cleaner to sell the operating company and lease the property back.
The full list, and who the buyers are: Selling a manufacturing company in Texas.
Your company
Talk to the firm that sold Nova Magnetics, Inc.
Four fields and a reply the same business day. Nothing you send is shared with anyone, and nothing reaches your employees, customers or competitors. If you would rather talk, call (855) 637-2776.
- A value range and what is driving it
- An honest answer about whether now is the time to sell
- No fee unless and until your company sells