Hub and Spoke is one of the value drivers that we analyze when engaging a business owner who’s thinking about selling in the next few years. This area of focus is one of the top elements that pique owners interest and it’s a topic that really doesn’t need to be much explanation, but the owner is the hub and all the departments and employees need to go to you for answers and decisions. 95% of the owners know this is holding back the company value but don’t know how to fix it!
I’ll never forget years ago meeting a very nice, white-haired pharmacist in Sarasota that owned a rather profitable and lucrative practice. I asked him to tell me about his exit plan and his response was, “ Exit? I’m not ready to exit. Come back and see me when I’m ready to leave my practice and I’ll be happy to speak with you”. I was lost for words for about 5 seconds. That’s like say, “Retire? I’m not ready to retire! Come back and see me about your retirement plans when I’
It happens more than I can count. I meet with an owner who’s interested in selling his business and I go through my process to identify a fair market value of the company and how much it will probably sell for on the open market. Based on the size of the company, this process can be rather arduous and time consuming, but as any broker will tell you, the market will ultimately tell you how much the business is worth. Regardless, the number I present is met with disbelief or fr