Every owner will transfer the business someday, to a partner, a family member, or an outside buyer. When that day comes, one of the first questions is: “Do I need an advisor, or can I sell it myself?” The company is usually most of the owner’s wealth, so the answer has real consequences.

Laundry and uniform owners are a capable group. Many companies have survived several generations and plenty of change, and most can’t afford a specialist for every job, so owners get used to handling new problems themselves. Selling the company feels like one more.

The catch is the assumption behind it: that knowing your business and knowing the likely buyers can stand in for skills advisors build over many transactions. That’s a big assumption.

Selling a company isn’t like selling a house

Most of us have sold a home, and comparable sales make the value feel knowable. Selling a business is different. Few people ever own one, fewer sell one, and good comparables are hard to find. Value turns on more factors. And the buyer across the table has usually done many more deals than you have.

At its simplest, an M&A advisor is a vendor you hire to handle the sale. Companies outsource for three main reasons, and each one applies here.

It isn’t your core competency

Leading a sale isn’t part of running a laundry. You may have bought a route or two. You probably haven’t been the seller.

The return is there

The most useful study we’ve seen is Fairfield University professor Michael McDonald’s 2016 paper, “The Value of Middle Market Investment Bankers.” He surveyed 85 owners who sold companies for $10 million to $250 million between 2011 and 2016 using an advisor.

Every respondent said the advisor added value, and 69% called it significant. And 84% said their final sale price matched or beat the advisor’s initial estimate.

You get capabilities you don’t have

The best advisors get strong prices because their process has been tested in deal after deal. The same sellers ranked the services they valued. Managing the process ranked highest. Finding buyers ranked lowest. Here are questions to ask any advisor about the services that matter.

  • Managing the process. Have they led laundry and uniform transactions? Can they walk you through their process and where it’s strongest?
  • Negotiating. How do they gather offers? Do they bring in enough buyers to create real competition? How do they help you choose the best fit, not only the highest number?
  • Adding credibility. Do they understand the buyers well enough to position your strengths? Are their materials professional? Will they run a proper data room?
  • Preparing the company. How do they set value, and can they back it up with results? Can they name your strengths and weaknesses and what each does to price? Do they get everything ready before calling a single buyer?
  • Structuring the deal. Do they work with legal and tax advisors who know the industry and can protect your net proceeds?
  • Finding buyers. In our industry the buyers are often well known. What matters is knowing each one: where they’re strong, what customer and product mix they want, and whether they’ll want your plant and your people.

Our advice

Talk to an advisor before you decide. That first conversation should cost you nothing, and it will help you judge whether the value is there. The decision is still yours.