Exclusive M&A Advisory Mandate for an Industrial Services Company Sale
Exclusive financial advisory supporting the sale of a Swiss industrial laundry services company
Description of the mandate: M&A advisory for the sale of a Swiss industrial laundry player
The engagement focused on the sale of a Swiss industrial player specialised in outsourced laundry services for the healthcare, hospitality and collective catering sectors. The company, created between 2010 and 2012, had around one hundred employees and an efficient industrial tool combining logistics efficiency and compliance with environmental standards. The exclusive financial advisory aimed to support the founding shareholders in the transmission of their company to a European group with strong sector expertise.
The transaction enabled the perpetuation of activity on Swiss territory while offering the acquirer direct access to a stable and attractive market.
Key challenges: valuing recent know-how and preserving employment in post-pandemic context
The main challenges focused on:
- the valuation of technical and organisational know-how developed over the years;
- the structured competition of strategic and financial acquirers at European scale;
- the preservation of jobs and the local industrial fabric in a post-pandemic context;
- complete transactional documentation and coordination of due diligence.
Approach and outcomes: competitive process and negotiation at 5-7x EBITDA, CHF 7-12M equity
The sale process was fully structured and competitively managed:
- preparation of information materials (teaser, information memorandum);
- qualification of strategic and financial counterparties at European scale;
- supervision of financial, legal, tax and operational due diligence;
- negotiation of final agreements integrating asset/liability guarantees and continuity conditions.
The transaction was carried out on the basis of a valuation range consistent with sector practices, between 5.0x and 7.0x EBITDA, corresponding to an estimated equity value of between CHF 7M and 12M. The transaction resulted in (i) a controlled sale in a demanding market environment, (ii) the continuity of industrial and social operations, (iii) the creation of a sustainable industrial partnership between seller and investor.
Illustrative example: numerical application to a Swiss industrial laundry player
For illustrative purposes only — unrelated to the actual data of the mandate — an industrial laundry player generating CHF 15M in revenue with EBITDA of CHF 2M (13% margin), 100 employees and an efficient machine fleet could exhibit an enterprise value range of between CHF 10M and 14M based on 5.0x to 7.0x EBITDA multiples. The share of long-term contracted revenue with university hospitals, nursing homes and 4+ star hotels constitutes a recurrence premium appreciated by industrial acquirers in consolidation.
Summary: 15-month mandate, competitive process, sustainable industrial partnership
Sell-side M&A mandate delivered over 15 months for a Swiss industrial laundry player sold to a European group. Competitive process: 5-7x EBITDA valuation = CHF 7-12M equity, multi-stream due diligence, negotiation. Deliverable: controlled sale preserving employment and industrial continuity, sustainable partnership between founders and acquirer.
Frequently asked questions: laundry multiples, recurring contracts and European acquirers
What multiples for industrial laundry?
For B2B industrial laundry players (healthcare, hospitality, collective catering), observed EV/EBITDA multiples range between 4.0x and 8.0x, with dispersion depending on (i) client portfolio quality (hospitals/nursing homes = recurrence premium), (ii) industrial performance (productivity, water/energy consumption), (iii) integration of environmental standards, (iv) geographic coverage.
How to value long-term contracts with hospitals and nursing homes?
Long-term contracts with public establishments (cantonal hospitals, nursing homes) are valued via (i) a recurrence premium in the multiple (0.5x to 1.0x EBITDA), (ii) a specific analysis of the contractual base (residual duration, revaluation clauses, renewal conditions), (iii) explicit documentation in the IM to reassure the acquirer on flow stability.
Who are the typical acquirers in laundry services?
Typical acquirers are (i) European consolidation players (Elis, Initial, RLD Mewa, Bardusch), (ii) sector investment funds in business services, (iii) hospital groups in vertical integration (rare in Switzerland), (iv) family offices with appetite for stable industrial SMEs.
How long does an industrial services M&A process take?
For a structured mid-cap industrial services sale, the standard duration is 10 to 18 months, incorporating preparation, competitive marketing, due diligence and closing. The mandate described was completed in 15 months.
How to integrate environmental considerations?
Environmental issues (water/energy consumption, eco-friendly detergents, transport) are integrated via (i) documented ESG due diligence, (ii) benchmarking against sector standards (Ecolabel, ISO 14001), (iii) valuation of eco-responsible investments already made (differentiation premium), (iv) a resilience analysis in the face of future regulatory constraints.
How to preserve local employment post-pandemic?
Employment preservation rests on (i) the selection of an acquirer with long-term industrial logic, (ii) contractual commitments to maintain headcount and production site, (iii) upstream consultation of employee representatives, (iv) an integration plan respectful of local specifics. To go further: sell-side M&A process.
Similar mandates: other sell-side M&A transactions in industry and services
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.