Stanton Magnetics, Inc., a closely held company based in Plainview, New York, supplies audio microphones, headsets and magnetic pickups to the industrial, commercial and consumer markets under its own name and its Pickering® brand. Diamagnetics, Inc., a closely held company located in West Palm Beach , Florida is an independent contract manufacturer of precision electro-magnetic and electronic products having the same controlling shareholder.
Stanton Acquisition Co., L.L.C. is a privately held company based in Hollywood , Florida . Its shareholders also own a manufacturer and importer of audio electronics.
OEM Capital was asked to assist Stanton Magnetics, Inc. and Diamagnetics, Inc., an affiliated company but with different ownership, in selling their operating businesses. Since the businesses were related, we developed a sales program to find and secure a synergistic buyer for the both businesses in order to maximize shareholder value.
OEM Capital worked closely with the owners and management to groom the companies for sale.
We recommended an organizational realignment, assisted in the preparation of budgets and financial projections. We recast detailed historical and budgetary financial data showing the performance of each product line and tying the results to each company’s financial statements.
Our marketing program elicited several offers and three of the more attractive bidders were invited to meet with management. As a result of our involvement, our clients were able to conclude the sales simultaneously in a timely manner, realize a premium cash flow multiple and have all employees hired by the purchaser.
Our success with Stanton Magnetics, Inc. and Diamagnetics, Inc. illustrates that, whether a business is healthy, underperforming or distressed, superior valuations can be realized for the selling shareholders by a well executed sales approach by merger and acquisition professionals who are knowledgeable about the industry and the intentions of its participants.