Growing EBITDA from $750k to $2m in Under 3 Years | John Hubbard Interview

Selling Transition

John Hubbard reflects on his mental shift from being a business buyer to a potential seller, a transition that has occurred in less than three years. He discusses how his focus has shifted from immediate profitability to enhancing the business's value for future buyers, considering improvements that could make the company more attractive as an asset 1. John shares his transparent approach to business, emphasizing the importance of understanding the financial realities of selling a business 2. He notes, "I want to try to be as transparent and candid about it," highlighting the value of openness in business dealings.

I want to try to be as transparent and candid about it.

--- John Hubbard

John also explores the potential financial outcomes of selling, contemplating a significant return on investment if he decides to sell in the coming years 3.

   

CEO Challenges

Hiring a CEO presents unique challenges for John, who is currently an absentee owner but remains deeply involved in major business decisions. He expresses concerns about relinquishing control to a CEO, especially in a niche industry where specific expertise is crucial 4. John considers the difficulty of finding someone who can understand and manage the unique aspects of his business, noting that a traditional CEO might not fit the company's needs. He humorously suggests that selling to a private equity firm might be easier, as they could handle the complexities of leadership transitions.

It becomes tricky. That's when you're like, you know, I'll just sell it to PE firm and they can worry about who runs it.

--- John Hubbard

The conversation touches on the potential benefits of finding the right CEO, drawing parallels to Warren Buffett's strategy of selecting effective leaders to unlock business value 5.