Closed transaction · April 2014
Power Factor, Inc.
MDR & Associates took Power Factor, Inc., a battery distributor, through to closing in April 2014.
The transaction
- ClosedApril 2014
- SectorManufacturing & industrial
- LocationDallas, Texas
- BuyerStrategic buyer: Metroplex Battery, a previous client
- Represented byMDR & Associates
The sale
How it ran
Power Factor had distributed battery back-up systems to companies nationwide since 1996.
In April 2014 we sold it to a previous client of the firm, Metroplex Battery, as an add-on to the battery business its new owner was growing. A client who comes back to buy is the compliment we value most.
We are truly honored that a previous client called on our firm to facilitate this acquisition.
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 Power Factor, 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