Ivor Spencer: Putting a Price on Knowledge - Teaching Note

As of 2005, world-renowned toastmaster and butler trainer Ivor Spencer, aged 81, is trying to sell his business. His business derives revenues from five principal sources: a butler training school that runs six-week training sessions twice a year in London, England; agency fees by placing butler graduates in homes; a toastmaster training school that runs sessions once a year; customized courses for hotel and restaurant staff around the world; and, his own personal services as toastmaster and corporate trainer. Spencer is wondering what value can be attached to his name and knowledge. The case addresses a challenging question in small family businesses that rely heavily on one person: what value does the business have to another party? It also allows students to make a parallel between the services of butling/household executive and those of professional service firms.