The Hire That's Eating Your Exit
Subtitle: Your next BD hire isn't a $300K decision. At 12x EBITDA, it's a $3.6M enterprise value decision. Most boards aren't doing that math.
Tuesday I broke down how the best platforms build sourcing pipelines that keep them out of auctions.
The question that always follows is the harder one: who actually builds this, and what does it cost?
That question is the whole problem.
The Default Move
When a PE-backed platform decides to build BD and sourcing capability, the instinct is to hire. Post for an AVP or Director of Business Development. Someone with healthcare M&A experience who can build the function from the ground up.
It feels like the serious move. The board likes seeing headcount aligned to the growth mandate. The CEO gets to point to a hire and say the pipeline is being addressed.
But the math underneath that decision is where it falls apart.