Taking Emotion Out of Valuing Your Business

The most frequent question I hear from new contacts is, what is my business worth? In determining the fair market value of business, many factors must be considered. While we’ve described valuation considerations in past articles, the comment, “I’ve got to have this much for my business” is not a relevant factor for determining fair value. It may be worth considering in as much as a threshold for a seller’s willingness to sell, but not the careful consideration buyers should give to submitting a fair and reasonable offer. To think of it another way, nobody would seriously consider purchasing a car, home, or any other costly asset if the “must have” price for the asset was higher than the market value. The buyer would simply keep looking.

Often in the optical industry, small business owners started and grew their businesses to their present size. They’ve invested more than just time and money to nurture and build a life business. They frequently have a fond emotional connection to customers, employees, and vendors with whom they share memories. In determining valuation and best prospects for a sale, a business owner must look past personal feelings about the business and understand its current and future financial and operational prospects rather than relying on a “must have” amount. Memories hold a lot of value, and that’s why they can’t be bought or sold.—Jason A. Meyer is senior vice president, HPC Puckett & Company.

Based in San Diego, Calif., HPC Puckett & Company specializes in mergers and acquisitions of wholesale optical laboratories. You can send comments or questions about this article or any other Dollars & Sense articles to Jason A. Meyer at jam@hpcpuckett.com.

Nexus Showcases Digital Technology at Open House Event

On April 10, Nexus Vision Group, a coalition of independent labs, celebrated its expansion into digital lens processing with an open house event on April 10 at its 7,500 sq. ft. headquarters in the Optical Village near Columbus, Ohio. The event’s theme was how Nexus can support and enhance the independent wholesale lab with technology-based services.

Pictured here inspecting a Satisloh MagnaSpin 2SV coater at Nexus Vision’s open house are, left to right, Pete Mayrand, lab manager at Western Carolina Optical, Bruce Brady, executive director of Optical Synergies, and Juan Pesante, general lab manager of the Nexus Vision Group.

Superior Optical Lab Builds
Social Media Presence

Superior Optical Lab, which features many resources for its customers on its existing Web site, is embracing social media as a new form of outreach. The Ocean Springs, Miss.-based company is building its presence on Facebook.

Superior Lab’s regular Facebook page is where customers can catch up on photos of interest and general news about the lab. Friends of that page can also then be part of the Superior Optical Group page, which debuted in May. Members of that group will be able to access “client only” news as well as limited-time specials that will be offered exclusively through the group Page. A special promotion code will provide access to weekly discounts and offers.

Dan Floyd Joins Robertson Optical

Veteran sales representative Dan Floyd recently joined the sales team of Robertson Optical Laboratories of Atlanta (Loganville) and is serving various territories in Georgia. He is a Georgia-licensed optician with 33 years of eyecare industry experience. Floyd’s most recent position was territorial sales manager of Hoya Vision America. He has also represented such companies as Ralph Lauren Polo.

POL Installs Crizal Technology In-House

Essilor of America recently completed the technology transfer of its patented Crizal process at Arden, North Carolina-based POL Optical Labs. With access to Essilor’s Crizal EXT technology, POL Optical Labs can now fully manufacture Crizal lenses at its Arden laboratory, including Crizal, Crizal Alizé and Crizal Avancé with Scotchgard Protector lenses.

POL Optical Lab’s new Crizal facility operates Essilor’s proprietary and patented equipment and process. A remote daily quality certification of the process has been set up with Essilor to ensure quality compliance and to guarantee consistency.

Precision Optical Group Expands Facilities

P.O.G. Labs recently purchased a neighboring commercial property just east of their current building in Creston, Iowa to accommodate their growing laboratory. The new building, which is connected by a walkway, will house the finishing department, some of the final inspection staff and the company’s accounting department. It adds an additional 3,200 sq. ft. to the production facility, bringing the lab’s total size to 18,200 sq. ft. A robotic shelving unit called a “Packmobile” (pictured above) which runs on an invisible track throughout the buildings helps ease the work flow.

Richard Chavis of Wizard of Eyes

For more than 20 years, optician Richard Chavis has owned and operated the only independent optical retail shop with a complete plastic surfacing lab in Manhattan, New York. Wizard of Eyes Optical was opened in November of 1986 to serve the East Harlem community, with the goal of providing high quality, same-day eyeglasses.

Chavis relies on his experienced sales force, many whom have worked for Wizard of Eyes Optical for five to 20 years, to stand behind their guaranteed products and services. “We have the fully trained, experienced staff to guarantee the service we boast about. I stand behind my products and promise to give our customers nothing less than I would wear myself,” said Chavis, who is pictured above, right, with lab tech Carlos Suarez. As long as the customer arrives before 1 p.m., Chavis and his staff promise same-day delivery of eyeglasses on almost all Rxs.

Chavis starts his workdays early. Upon arriving, he begins taking all measurements, calibrates the Gerber Coburn SGX generator and sets up what needs to be ordered for the day. He stocks and orders contact lenses, answers the phones, and checks in with the doctor of the day.

“I love being an independent optician, making my own decisions and running to the pace of my own clock. I can focus fully on the things that need my attention,” said Chavis.

Reflecting on his career, Chavis noted that working with the state-of-the-art equipment such as a patternless edger and fully computerized surfacing system is a highlight. He envisions a future in which Wizard of Eyes Optical will continue to grow by means of its leading edge technology, allowing Charvis’ staff to take more of a role in managing day-to-day business.

LabTalk Spotlight   June 2010

Are You Finished With Finish Blockers?
By Christie Walker

According to some lab technicians, the finish blocking area is a problem area with the most breakage and requiring the most skilled labor. If there is a problem here, you’ve just ruined/wasted all the time and effort and material used to bring the lens to this point.

Basically there are two options when it comes to finish blocking, manual and automated, with a third option—a single lens block carrier—looming on the horizon.

If you really want to know how finish blocking is actually performed in an optical laboratory, though you need to get into the trenches, get a little polish on your sleeve and ask a lab guy or gal. Log onto www.labtalkonline.com and go to the Features section to find out what your peers have to say on the subject of finish blockers.