Time To Sell: Know Your Options to Maximize Value

If you’re a multi-unit operator or franchisee considering selling your business, one of the first decisions is whether to hire an investment banker or run the process yourself.

Some default to hiring one. Others assume they don’t need one. There are situations where an investment banker will materially improve the outcome and others where they won’t add much value at all. Understanding the difference is what matters.

On Your Own

There are plenty of scenarios where hiring a banker doesn’t make sense.

If you already know the buyer and it’s a credible, approved, well-capitalized operator, you may not need an intermediary. This is especially true in the multi-unit industry, where relationships with neighboring operators are close and active. If you’ve done deals before and understand valuation, structure, and the approval process, you can often get a deal done efficiently on your own.

Smaller transactions also don’t always justify a full advisory process. For a single unit or a small cluster of locations, the incremental value created by running a broad process may not outweigh the fees, time, and added complexity. In these cases, a direct negotiation or even a broker-led process can be more practical.

Expert Advice

An investment banker earns their keep when they can create competition, improve positioning, and drive a better outcome than you could achieve alone.

When you don’t know the best buyer, an investment banker can add value. The universe of qualified buyers, especially in the multi-unit space, is deeper than most operators realize. Strategic buyers, private equity-backed platforms, family offices, and emerging operators are all active, but they’re not always visible. A good banker brings access to that network.

More importantly, investment bankers create competition.

One of the biggest mistakes operators make is engaging with a single buyer too early. Even if that buyer is credible, you’ve immediately capped your outcome. Without competitive tension, there is no reason for that buyer to stretch on price or terms. A structured, targeted process forces buyers to put their best foot forward, and that alone can be worth multiples of the advisory fee.

Bankers also help with positioning and narrative, which is often overlooked. Buyers are not just buying trailing EBITDA; they are underwriting future cash flow. Two businesses with identical financials can trade at very different valuations depending on how clearly the story is told and how confident a buyer feels in its credibility.

This is where experience matters. Knowing how to frame margin expansion, normalize earnings, present remodel cycles, or position temporary headwinds (like commodity spikes) as embedded upside can materially impact valuation.

Finally, there’s process management and friction reduction. Transactions are time-consuming and disruptive. Running a process while operating a business is difficult. A banker manages diligence, coordinates buyers, pushes timelines, and keeps deals moving. Just as importantly, they act as a buffer in negotiations, allowing you to maintain relationships while still pushing for better terms.

Size and Complexity

As a general rule, the larger and more complex the transaction, the more value an investment banker can add.

A 50-plus-unit portfolio with multiple buyers, lenders, franchisor approvals, lease assignments, and operational diligence is fundamentally different from selling a handful of stores. Complexity introduces risk, and risk impacts value. A well-run process reduces that risk and gives buyers confidence, which translates into better outcomes.

On the other hand, smaller, simpler deals with a known buyer may not warrant the same level of advisory involvement.

Picking a Partner

If you decide to hire an advisor, the next question is just as important: Which one?

This is where many operators make mistakes: hiring a generalist or not fully understanding the differences in how advisors approach a process.

At a high level, there is a distinction between investment bankers and brokers. Brokers typically run broader, high-exposure processes, often marketing opportunities widely to generate interest. That approach can work in certain situations, particularly for smaller or simpler transactions where the goal is to find a buyer quickly.

Investment bankers, by contrast, run more targeted and confidential processes. Rather than broadly advertising a business, they engage directly with a curated group of qualified buyers and manage a structured process designed to create competition and protect confidentiality.

Beyond approach, specialization matters.

The restaurant and franchise space is relationship driven and highly nuanced. Franchisor approvals, transfer processes, remodel obligations, POS systems, and brand-specific dynamics all matter. An advisor who doesn’t operate in this space regularly will miss things, move more slowly, and ultimately create more friction.

You want someone who:

• Specializes in multi-unit and franchise businesses
• Is actively doing deals in your category
• Knows the relevant buyer universe by name
• Understands franchisor dynamics and approval processes
• Has credibility with both strategic operators and financial buyers

The Bottom Line

There’s no single right way to sell a business. Not every situation requires the same approach. Some transactions come together directly and efficiently without the need for an advisor or investment banker. Others benefit from a more structured, competitive process that brings multiple buyers to the table.

The key is understanding the dynamics of your situation. If you bring in an advisor, make sure they know your space, know the buyers, and can run a process that drives results, not just activity. n

Jack Grespin is a partner with C Squared Advisors, an investment bank that has completed hundreds of transactions in the multi-unit franchise and restaurant space. Contact him at (419) 239-1980 or [email protected].