A Multimillion Dollar Deal, a Product Recall and a New Chapter: Gwen Whiting on the Good, the Bad and the Ugly of Acquisitions

Gwen Whiting shares her experiences in successfully bootstrapping her company, The Laundress, for 16 years, avoiding venture capital investment and maintaining full control over her business.

Gwen Bootstrapped the Laundress For 16 Years Using Credit Cards and an SBA Loan, Avoiding VC Investment

Gwen, a Designer, Seized the Chance to Enhance the Laundry Landscape

Gwen launched The Laundress with a mission to enhance the laundry product landscape. Leveraging a $100,000 Small Business Administration (SBA) loan, she funded the initial production run as well as the launch of the business.

Creative Bootstrapping for the Laundress: Credit Card Debt and Small Business Loans

Gwen describes employing a resourceful method to finance her operation, which involved applying for and using credit cards, eventually accruing a quarter million dollars in debt. She faced particular challenges as an inventory-based business, where the initial $100,000 investment was quickly exhausted. Gwen meticulously managed her finances, applying for credit cards through mail applications and strategically rolling over debt from one card to another to benefit from varying APRs and credit limits.

Gwen Maintained Full Control Despite Fundraising Challenges

Despite facing tough financial circumstances during events like the 2008 crisis, and carrying the burden of debt, Gwen persevered with her strategy to avoid VC funding. This approach granted her complete autonomy over The Laundress. She candidly discussed the s ...

Gwen Whiting shares a candid look at the complexities and post-sale challenges of selling her company, The Laundress, to Unilever, detailing an unorthodox approach, difficult negotiations, and a tumultuous transition period.

Unilever Approached Gwen About Acquiring the Laundress at Company's Store

Unilever first expressed interest in acquiring The Laundress in an unconventional manner that took place in Gwen Whiting's retail store on Prince Street. Gwen described the initial approach by a Unilever representative who unexpectedly visited the store and requested to speak with her as bizarre and unprofessional. The representative, who had traveled from Ohio, called Gwen, who, taken aback, suggested they continue their conversation outside of the store environment.

A follow-up call to Gwen came in from Unilever, extending an invitation to New Jersey to "kiss the ring,” which Gwen interpreted as a metaphorical way to say that Unilever’s executive team wanted to meet her. This odd visit by the Unilever representative to the Laundress store is what sparked the acquisition conversation.

Unilever's Lengthy, Contentious Offer Found Unacceptable by Gwen For a Profitable, Debt-Free Business

Gwen Whiting believed that her brand, The Laundress, was a good fit with Unilever, particularly following Unilever's acquisition of another values-aligned company, Seventh Generation. However, the transition described by Gwen after selling The Laundress was anything but smooth.

Gwen Accepted Unilever's Offer After 13 Months, Unready for Integration

Gwen recounted that following the acceptance of Unilever's offer—which took 13 months—a perfect plan that was laid out in the deal room never came to fruition. There was a lack of a clear handoff, and Gwen referred to the integration as "just kind of like slithered into it."

Chaotic Transition Post-Sale: Lack of Leader ...

Gwen Whiting offers sage advice to founders who are going through the process of an acquisition or are thinking of selling their business.

Gwen Advises Founders to Plan For Worst-Case Scenarios in Acquisitions and Negotiate Transition Plans and Protections

Key Terms to Prioritize: Transition Plan, Roles and Responsibilities, Safeguards Against Dilution of Founder’s Vision and Power

Gwen Whiting emphasizes the importance of planning for the worst-case scenarios during acquisitions. She advises founders to ensure there are clear terms in place regarding transition plans, roles, and responsibilities, and to put safeguards in place against the dilution of the founder's vision and power. She points out the need for a well-defined transition process, reflecting on her own experience where there was no "nice handoff" and she was "never officially excused," highlighting the potential chaos post-acquisition if roles and exit strategies are not defined.

Founders Should Be Wary of Earn-Outs Undermined by Acquirer's Actions and Expenses

Gwen cautions founders about earn-outs, which often do not result in the expected payment due to acquirers, like Unilever, layering on expenses and processes over which the seller has no control. She notes that these additional expenses can impact the bottom line and EBITDA, potentially negating any promised upsides for the seller.

Even When Acquisitions Seem Lucrative, Independen ...

Gwen Whiting opens up about a harrowing chapter of her life that extends well beyond her professional journey.

Post-Unilever Acquisition, Gwen Discovered She Was Among Many Sexually Assaulted by a Columbia University Doctor

Nicole Lapin touches on the grave topic of sexual assault and mentions Gwen Whiting as one of the victims, part of a disturbingly large group assaulted by an OBGYN at Columbia University.

Gwen Dismissed Allegations but Saw Her Experience As Part of a Larger Pattern After a Commercial

Initially, Gwen may have dismissed allegations against the doctor, but after understanding that her experience was not isolated but part of a broader pattern of abuse, she began to view the incident differently. This reckoning perhaps came into sharper focus upon seeing a commercial or public announcement relating to the case.

Connecting With Survivors Has Helped Gwen Process Trauma and Amplify Their Voices

The painful realization of the extent of the abuse prompted Gwen to connect with other survivors. This connection has not only helped her proc ...