The Real Value of Hiring an M&A Advisor: Why Owners See 25–37% Higher Valuations
Business owners who sell with an M&A advisor often achieve 25–37% higher valuations and millions more in net proceeds. Here’s why the right advisor changes everything.
The Economics of Hiring an M&A Advisor
For many healthcare and service business owners, deciding whether to bring in an M&A advisor is one of the most important and misunderstood choices in the exit process. Recent industry analysis shows a clear pattern: working with an experienced advisor doesn’t just add structure to the sale process. It can deliver 25–37% higher exit multiples. That’s one to two full turns of EBITDA, which translates into millions more in net proceeds for mid-market sellers.What’s Really at Stake
- Higher Valuations — Advisors know how to run a competitive process, creating buyer urgency and driving bids higher.
- Millions in Net Proceeds — A $2M EBITDA company could net an additional $3M+, even after advisor fees.
- Avoiding Costly Misconceptions — Owners who think, “I already know the buyer” or “fees are too high” often leave significant value on the table.
- Focus and Energy — Running a sale yourself drains time and distracts from operations. Advisors keep the process moving while you keep the business strong.
- Beyond the Numbers — From signaling credibility to managing due diligence, advisors add value at every stage. Often in ways that are invisible until problems arise.
Vallexa Advisors’ Perspective
At Vallexa Advisors, we’ve seen this play out firsthand. Owners who try to run the sale themselves often underestimate:- How much buyer psychology influences valuation.
- How credibility and competitive tension drive offers higher.
- How draining diligence can be without a buffer between owners and buyers.
Bottom line: Hiring an advisor isn’t an expense, it’s an investment. In many cases, the advisor’s fee pays for itself several times over in higher proceeds, faster closings, and less stress.
Key Takeaways for Owners
- Don’t run it alone — Even strong operators lose leverage when they negotiate without an advisor.
- Competitive tension drives value — Advisors create an environment where multiple buyers compete for your business.
- Your time has value — Protecting your energy and focus during a sale is as critical as the valuation itself.
- Fees are a multiplier, not a cost — The right advisor more than pays for themselves by maximizing net proceeds.
- Credibility matters — A professional process signals strength, which buyers respect with stronger offers.
Thinking About Selling Your Healthcare Business?
If you’re considering your options, don’t leave value on the table.- Contact Vallexa Advisors for a confidential conversation about your exit.
- Or view our active listings to see what’s moving in today’s market.
Contact Vallexa Advisors: 586-623-5616
Cash equivalent to purchase price set aside to invest from currently available funds required
– Healthcare-specific industry experience required –
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Read more: how an advisor actually moves valuation ↑
Where the extra turns of EBITDA come from
- Competitive tension: structured buyer outreach and staged bids raise the ceiling.
- Credibility signal: clean CIM, process calendar, and data room discipline reduce risk discounts.
- Owner energy shield: advisors buffer diligence so the business doesn’t dip during the process.
- Deal architecture: earnouts, holdbacks, and working capital framing protect net proceeds.
- Healthcare nuance: payer mix, accreditation, survey history, and staffing stability tell a stronger story.
Note: Vallexa’s perspective informed by recent industry research and our own transaction experience.
FAQ: Hiring an M&A Advisor
Do advisor fees really pay for themselves?
In many transactions, yes. Competitive processes typically increase offers enough to exceed fee costs, while also improving terms and certainty of close.
What if I already know a buyer?
That can be a starting point—not the only point. A well-run process tests the market, creates leverage, and often improves both price and terms with your known buyer.
How soon should I engage an advisor?
3–6 months before you want to go to market. That window lets you prepare clean financials, organize diligence, and position the thesis.
Do you only handle healthcare deals?
Vallexa specializes in healthcare—home health, hospice, home care, DME, and related services—where domain nuance meaningfully affects valuation.
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