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Preparing to Sell Your Optometry Practice: A Comprehensive Guide

Selling an optometry practice represents one of the most significant financial and emotional transitions in a practitioner’s career. Whether you’re approaching retirement, seeking new opportunities, or simply ready for a change, proper preparation can mean the difference between a smooth, profitable transition and a stressful, protracted process.

At William’s Group, we’ve guided hundreds of optometry practice owners through successful transitions, and we’ve seen firsthand how proper preparation dramatically impacts sale outcomes. This comprehensive guide walks you through the essential steps to position your practice for a successful sale—and explains how our specialized expertise can help you maximize value while minimizing stress throughout the process.

Start Planning Early: The Three-Year Timeline

Why Three Years?

The most successful practice sales don’t happen overnight. Starting at least 2–3 years in advance gives you time to:

  • Clean up your financials
  • Modernize your technology
  • Improve profitability
  • Strengthen your team

During this preparation period, you’ll have time to strengthen revenue streams, update equipment, enhance systems and processes, and build a transferable patient base. Buyers are willing to pay premium prices for practices that demonstrate consistent growth, modern operations, and minimal risk.

What We Recommend:

  • Perform a comprehensive practice assessment
  • Prioritize revenue-boosting upgrades
  • Address red flags early (like outdated tech or lease issues)

Our consulting team works with practice owners during this critical preparation phase, conducting comprehensive assessments to identify opportunities for value enhancement. We help you prioritize improvements that will generate the highest return on investment when it’s time to sell.

Understanding Your Practice’s Value

What Affects Optometry Practice Valuation?

Before you can sell your practice, you need to understand what it’s worth. Optometry practices are typically valued using several methods, with the most common being:

  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
  • A percentage of gross revenue

But valuation is never just a formula. It’s influenced by:

  • Annual revenue and profit trends
  • Patient base size and demographics
  • Equipment condition and age
  • Staff competency and retention
  • Lease terms or real estate
  • Local market demand

This is where specialized expertise makes a significant difference. At William’s Group, we provide professional practice valuations that go beyond simple formulas. We understand the nuances of optometry practice valuation, including equipment depreciation, patient retention rates, lease terms, and local market conditions. Our valuations give you a realistic baseline for pricing discussions and identify specific areas where strategic improvements could increase value.

Pro Tip: Get a professional valuation from experts who understand the nuances of optometry businesses—like depreciation on equipment, patient attrition, and payer mix.

Get Your Financial House in Order

Your practice’s financial records are among the first things potential buyers will scrutinize. Clean, organized, and transparent financial documentation builds buyer confidence and facilitates due diligence. Messy financials raise red flags.

Must-Have Documents:
  • 3 years of P&L statements
  • Balance sheets and tax returns
  • Addback schedules for personal expenses
  • Clean Accounts Receivable reports

Start by ensuring your financial statements accurately reflect your practice’s performance. You’ll need at least three years of profit and loss statements, balance sheets, and tax returns that clearly show revenue trends, expense categories, and profitability margins.

If you’ve been running significant personal expenses through the practice, now is the time to normalize your financials. Buyers want to see the true earning potential of the practice without having to adjust for the owner’s personal spending.

How William’s Group Helps:
  • Organize and prepare financials
  • Create addback schedules to show true profit
  • Help clean up AR and improve transparency

Many practice owners underestimate the complexity of financial preparation for a sale. Our team helps you organize and present your financials in a way that maximizes appeal to buyers. We work with you and your accountant to create clear addback schedules that demonstrate true earning potential, clean up your accounts receivable, and ensure there are no financial surprises that could derail negotiations.

Modernize Your Equipment and Technology

In today’s competitive optometry market, modern equipment and technology are essential value drivers. Buyers recognize that outdated equipment requires immediate capital investment, which they’ll factor into their purchase price or use as a negotiating point.

Equipment Buyers Focus On:
  • Phoropters and refraction equipment
  • OCTs (Optical Coherence Tomography scanners)
  • Visual field analyzers
  • Retinal cameras
  • Slit lamps
  • Digital retinal imaging
  • Lens edging equipment
  • EHR and practice management software

Assess your current equipment inventory and identify items that are outdated or approaching the end of their useful life. You don’t necessarily need to replace everything, but having relatively current technology in key diagnostic areas makes your practice more attractive.

Tip: Upgrade your software system if you’re still on paper records or legacy platforms. Buyers prefer cloud-based, all-in-one solutions. If major equipment upgrades aren’t financially feasible, consider leasing newer equipment, which demonstrates to buyers that the practice has access to modern technology without requiring them to make an immediate cash outlay.

Build a Strong, Transferable Team

Your staff represents one of your practice’s most valuable assets, yet it’s often overlooked during sale preparation. A skilled, stable team that can continue operations seamlessly after your departure dramatically increases buyer confidence and practice value.

Focus Areas:
  • Low turnover signals operational stability
  • Keep certifications and training current
  • Reduce dependence on you, the seller
  • Develop associate doctors who could become successors

Focus on reducing staff turnover in the years leading up to your sale. High turnover signals management problems or compensation issues that may concern potential buyers. Invest in staff training and development to ensure your team has current skills and certifications.

Consider whether any key positions are too dependent on your personal relationships or expertise. Buyers worry about practices where the owner is the sole practitioner with no associate doctors, or where the owner personally manages critical relationships with vendors, insurance companies, or referral sources. Developing depth in your organization makes the transition smoother and the practice more valuable.

If you have an associate optometrist, this person may become a natural buyer for your practice. Building up an associate over several years before your planned exit can create a seamless transition that preserves patient relationships and staff continuity.

Optimize Your Patient Base

A thriving, loyal patient base is the foundation of your practice’s value. Buyers want to see a large active patient count with strong retention rates and consistent recall compliance.

Key Actions:
  • Launch recall and reactivation campaigns
  • Improve patient retention tracking
  • Diversify your payer mix
  • Document marketing strategies and ROI

In the years before selling, focus on growing your active patient count through marketing initiatives, recall campaigns, and excellent patient experience. Implement systems to track patient retention and identify patients who haven’t returned for regular care. A well-executed recall program can significantly boost revenue and demonstrate practice vitality to buyers.

Pay attention to patient demographics as well. A diverse patient base across age groups and insurance types reduces risk for buyers. If your practice is heavily dependent on a single insurance plan, demographic group, or referral source, work to diversify.

The more you can systematize new patient acquisition and retention, the more confident your buyer will be. Document your marketing efforts and their return on investment. Buyers want to see that the practice has established systems for attracting new patients and that growth doesn’t depend solely on the selling owner’s personal reputation.

Address Facility and Lease Considerations

The physical location and condition of your practice significantly impact its marketability and value. Whether you own or lease your space, several factors require attention.

For Leased Spaces:
  • Ensure at least 5 years left on your lease
  • Secure favorable terms and renewal options
  • Avoid lease uncertainty that can hurt offers

If you lease your space, review your lease terms carefully. Buyers want to see favorable lease rates, adequate remaining term (ideally at least five years), and reasonable renewal options. If your lease is expiring soon, negotiate a renewal or extension before putting your practice on the market. Uncertainty about location continuity can kill a deal or dramatically reduce offers.

If You Own the Building:

For practice owners who own their building, you’ll need to decide whether to sell the real estate with the practice or separately. Each approach has advantages and disadvantages depending on your financial goals and the local real estate market. Consulting with a commercial real estate advisor can help you make this decision strategically.

Simple Improvements That Add Value:
  • Fresh paint and updated flooring
  • Improved lighting and signage
  • Clean, organized reception and exam rooms

Regardless of ownership structure, ensure your facility is well-maintained and presents professionally. Fresh paint, updated flooring, modern lighting, and an organized, clean appearance make a strong first impression on potential buyers. While major renovations may not provide dollar-for-dollar returns, basic improvements and deferred maintenance should be addressed.

Create Comprehensive Documentation

Thorough documentation streamlines the due diligence process and demonstrates that your practice is well-managed and organized. Start compiling comprehensive records well before listing your practice for sale. This step reduces buyer risk and builds trust.

Essential Documents:
  • SOPs for all admin and clinical processes
  • Organizational charts showing staff roles and responsibilities
  • Equipment inventory with purchase dates and maintenance records
  • Vendor and supplier contact information and contract terms
  • Insurance contracts and fee schedules
  • Marketing materials and patient acquisition costs
  • Patient demographic reports and retention statistics
  • Employee agreements and benefit information
  • Lease or real estate documents

Creating detailed operations manuals shows buyers exactly how your practice functions and reduces their perceived risk of operational disruption after the sale. This documentation also helps you identify areas where processes could be improved or standardized.

Choose the Right Sale Structure

Optometry practice sales can be structured in various ways, each with different tax implications and risk profiles. Understanding your options helps you negotiate more effectively and make decisions aligned with your financial goals. The deal structure can significantly impact your net return, especially from a tax standpoint.

Common Structures:

Asset Sale – Buyer purchases specific assets of the practice such as equipment, patient records, and goodwill, but doesn’t assume liabilities. This is the most common structure and generally favored by buyers. Lower risk for buyers.

Stock or Entity Sale – Buyer purchases the ownership interests in the business entity itself, assuming both assets and liabilities. Less common but may offer tax benefits for sellers.

Payment Options:
  • All-cash at closing
  • Seller financing (where the seller provides a loan for part of the purchase price)
  • Earn-outs (where part of the price is contingent on future performance)
  • Consulting or employment agreements where the seller continues working for a period post-sale

Each structure has different tax consequences, and choosing the wrong one can cost you tens or even hundreds of thousands of dollars. Our team has extensive experience structuring optometry practice sales to optimize outcomes for sellers. We work closely with your accountant and attorney to model different scenarios and help you understand the after-tax implications of various structures before you commit to terms. What seems like a higher purchase price might actually net less after taxes depending on how the deal is structured—we ensure you see the complete picture.

Decide on Your Post-Sale Involvement

One of the most important decisions you’ll make is how involved you want to be after the sale. Your preference here should be communicated clearly to potential buyers early in the process. Decide in advance how involved you want to be after the sale.

Consider:
  • Full exit upon sale
  • Short-term consulting or transition support
  • Part-time role for 1–2 years

Many buyers, particularly younger practitioners or first-time practice owners, prefer that the selling doctor stays on for a transition period. This might range from a few months to several years. Your continued presence can reassure patients, help train the new owner, and facilitate the transfer of relationships with staff, vendors, and referral sources.

However, if you’re ready to fully retire or move on to other opportunities, be upfront about this. Some buyers specifically seek practices where they can take over immediately without the selling doctor remaining. The key is to find buyers whose expectations align with your plans.

If you do agree to a transition period, ensure the terms are clearly defined in writing. Set clear expectations and document:

  • Your responsibilities
  • Time commitment
  • Compensation
  • Timeline for exit

Buyers want certainty in the transition process. Avoid open-ended agreements that could lead to conflicts or prevent you from fully moving on.

Maintain Confidentiality Throughout the Process

One of the biggest risks during a practice sale is information leaking prematurely to staff, patients, or competitors. Uncontrolled disclosure can create staff anxiety, patient attrition, and competitive disadvantages that reduce your practice’s value.

Best Practices:
  • Require NDAs (non-disclosure agreements) before sharing sensitive details
  • Delay staff notification until a signed Letter of Intent
  • Limit disclosures to essential personnel only

Implementing appropriate confidentiality measures is essential. Potential buyers should sign non-disclosure agreements before receiving sensitive information about your practice. You need to be selective about who you tell and when, releasing information only as necessary and appropriate.

Planning for staff notification requires careful strategy. Your team will need to know eventually, but timing matters. Many sellers wait until they have a signed letter of intent with a qualified buyer before informing staff, minimizing the period of uncertainty while ensuring employees aren’t blindsided.

Managing confidentiality throughout a sale process is one of the most challenging aspects for practice owners trying to sell on their own. At William’s Group, we serve as a buffer between you and potential buyers, maintaining strict confidentiality protocols while marketing your practice to qualified prospects. We protect your identity while marketing your practice. We vet buyers, handle inquiries, and maintain confidentiality until you’re ready. Our established network of vetted buyers allows us to identify serious candidates without broadly advertising your practice’s availability.

Assemble a Rockstar Advisory Team

Selling a practice is complex, involving legal, financial, and operational considerations that require specialized expertise. Building a team of qualified professionals is essential for navigating the process successfully. The right team will save you time, money, and stress.

Your Team Should Include:
  • Optometry practice broker or consultant who specializes in optometry practices
  • Healthcare attorney experienced in practice transactions and sales
  • Accountant familiar with practice valuations and tax implications
  • Financial advisor to help you plan for the proceeds and your financial future

While professional fees may seem expensive, qualified experts typically more than pay for themselves by maximizing your sale price, protecting you from legal risks, minimizing tax liability, and expediting the transaction process.

How We Support You:

This is where William’s Group becomes your most valuable partner. Unlike general business brokers, we specialize exclusively in optometry practices. We understand the unique aspects of optometry practice operations, the current market conditions, buyer expectations, and regulatory requirements specific to your profession.

William’s Group provides:

  • Practice valuation – Comprehensive analysis and market positioning
  • Strategic preparation and value enhancement – Identify improvements that maximize sale price
  • Marketing to qualified buyers – Access to our extensive network of vetted buyers
  • Offer negotiation and deal structuring – Expert representation to secure optimal terms
  • Due diligence management – Coordinate the complex documentation process
  • Post-sale transition planning – Support for a smooth handoff

We’ve successfully closed hundreds of optometry practice transactions, and our deep industry relationships mean we often have qualified buyers ready before your practice even hits the market. Our track record speaks for itself—practices we represent typically sell for premium prices in shorter timeframes with fewer complications than those sold without specialized representation.

Prepare Emotionally for the Transition

Finally, don’t underestimate the emotional aspects of selling your practice. For many optometrists, their practice represents decades of hard work, relationships with patients spanning generations, and a significant part of their personal identity.

You May Feel:
  • Uncertainty about the future
  • Sadness leaving long-term patients and staff
  • Relief or excitement about new opportunities

It’s normal to experience mixed emotions throughout the sale process, including excitement about new opportunities, anxiety about change, sadness about leaving patients and staff, and concerns about whether you’re making the right decision. Acknowledging these feelings and discussing them with family, friends, or a counselor can help you navigate the transition more smoothly.

Consider what comes next in your life. Whether it’s full retirement, part-time consulting, new business ventures, or personal pursuits, having a vision for your post-practice life makes the transition feel less like an ending and more like a new beginning. Having a vision for your post-practice life—whether it’s retirement, consulting, or travel—helps reframe the sale as a new beginning, not an ending.

Ready to Start Your Journey?

Preparing your optometry practice for sale requires significant time, effort, and strategic planning. By starting early and addressing each of these areas systematically, you position yourself for a successful transaction that maximizes value while minimizing stress.

The effort you invest in preparation pays dividends not just in the final sale price, but in the smoothness of the transaction and your peace of mind knowing you’ve set both yourself and your successor up for success.

Selling your optometry practice is a big decision, and you don’t have to go it alone. Whether you’re planning to sell in the next few months or several years down the road, the right time to start the conversation is now.

At William’s Group, we offer complimentary, confidential consultations to help practice owners understand their options and develop a roadmap for a successful transition. We offer confidential, no-obligation consultations to help you evaluate your options and chart a course to a successful transition.

Our team is ready to answer your questions, provide a preliminary assessment of your practice’s market position, and outline how our services can help you achieve your goals. We understand that selling your practice is one of the most important financial decisions of your career—you don’t have to navigate it alone.

Contact us today to schedule your confidential consultation and discover how we can help you maximize the value of your life’s work. Start planning your next chapter with clarity and confidence.

 

Frequently Asked Questions

1. How much is my optometry practice worth?

Valuation depends on EBITDA, revenue trends, equipment, staff, and location. A professional valuation gives you a clearer picture. Common valuation methods include multiples of EBITDA or percentages of gross revenue, but the true value is influenced by many factors including patient demographics, payer mix, lease terms, and local market conditions.

2. When should I start preparing to sell?

Ideally, 2–3 years before your target sale date. This gives you time to improve financials, modernize equipment and technology, strengthen your team, optimize your patient base, and address any issues that could reduce your practice’s value or complicate the transaction.

3. What’s better: an asset sale or a stock sale?

Most optometry practices sell through asset sales, which allow buyers to purchase specific assets like equipment, patient records, and goodwill without assuming liabilities. However, a stock sale (where the buyer purchases the business entity itself) may offer tax benefits in some cases. The best structure depends on your specific situation and should be determined with guidance from your accountant and attorney.

4. Do I need to tell my staff right away?

Not initially. Wait until a qualified buyer signs a Letter of Intent before notifying your team. This minimizes the period of uncertainty and prevents staff anxiety or potential attrition that could occur during a prolonged sale process. However, once you have a committed buyer, transparent communication with your team is essential for a smooth transition.

5. Can I sell without a broker?

Yes, but specialized brokers often help you get a higher sale price and a smoother process. They also protect confidentiality and manage buyer communications. Professional brokers who specialize in optometry practices understand the unique valuation factors, have established networks of qualified buyers, can negotiate more effectively on your behalf, and handle the complex due diligence process. The increased sale price and reduced stress typically more than offset broker fees.

Get help selling your practice by scheduling a call with Brad Rourke, CPA, ABV or learn more about the practice transitions on our website.  

Brad Rourke, CPA, ABV

President + CEO
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Optometry Practice Ownership: A Smarter Career Path for New ODs

Graduation season in optometry schools brings a familiar pattern. Students who’ve survived years of boards, clinical rotations, and countless exams turn their attention to one singular goal: finding an associate position. It’s the natural progression everyone expects—finish school, land a job, start working.

For most new doctors of optometry, this path makes complete sense. Associate work provides steady income, mentorship opportunities, and a chance to develop clinical skills in a low-risk environment. It’s a solid foundation for a career in eye care.

But here’s what rarely comes up in those final semesters, or during residency orientations, or even in job interviews: associate work is just one option among several viable career paths. And depending on your long-term goals, it might not be the most strategic choice.

Practice ownership—often dismissed as something for “later” or reserved for those with decades of experience—deserves serious consideration much earlier in your career than conventional wisdom suggests. For new optometrists willing to look beyond the immediate future, ownership offers something fundamentally different: financial leverage, professional autonomy, and the kind of long-term stability that a paycheck alone can never provide.

Let’s explore what that actually means in practical terms.

 

The Binary Choice That Isn’t Really Binary

Fresh out of optometry school, the career decision often feels straightforward: take an associate position now, or maybe—someday, when you’re more experienced, more financially stable, more “ready”—consider buying a practice.

Ownership gets positioned as a distant aspiration. Something to think about after you’ve paid down student loans, after you’ve logged enough clinical hours to feel confident, after life circumstances align perfectly. The timing never seems quite right, and “someday” quietly becomes “never.”

What’s interesting is that this narrative doesn’t match the reality of how many successful practice owners actually started. Talk to established ODs who own thriving practices, and you’ll find a surprising number bought their first practice within just a few years of graduation. Not because they had everything figured out. Not because they felt completely ready. But because ownership itself became the vehicle for their growth—accelerating their learning curve, expanding their income potential, and building financial stability faster than an associate track ever could.

The question isn’t whether you’re ready for ownership. The question is whether you understand it well enough to make an informed choice.

 

Understanding the Fundamental Difference: Income vs. Equity

As an associate optometrist, your compensation operates on a relatively straightforward model. You might earn a base salary, or get paid based on production, or work within some combination of the two. The income is predictable. You know roughly what each month will bring, and you can budget accordingly.

This predictability has real value, especially early in your career. But it also has a ceiling.

Here’s what changes when you own a practice: your income becomes decoupled from your personal chair time. Instead of being paid solely for the appointments you personally conduct, you’re paid for the overall performance of the business. Every system you improve, every efficiency you create, every team member you develop—all of that contributes to value that extends beyond your individual productivity.

More importantly, you’re building equity. That’s a sellable, transferable asset that appreciates over time as you improve the practice. Each strategic decision you make—investing in better diagnostic equipment, refining patient flow, building a strong referral base, developing a skilled team—doesn’t just affect this year’s income. It increases the long-term value of something you own.

This equity allows practice owners to eventually sell their practice at retirement, to bring on partners or associate doctors, to gradually reduce clinical hours while maintaining income through the business operations. It creates options that associate work simply can’t provide.

Think of it this way: associates trade time for money. Practice owners build assets that generate money.

Both are legitimate paths. But they lead to very different destinations.

 

Ownership Doesn’t Require Starting From Zero

One of the biggest misconceptions among new graduates is that ownership means opening a brand-new practice from scratch—finding a location, buying all the equipment, building a patient base from nothing, and shouldering enormous risk while figuring everything out alone.

That’s one path to ownership, certainly. But it’s far from the only one, or even the most common one.

Many first-time practice buyers—including those early in their careers—purchase existing, cash-flowing practices. They inherit established patient bases, trained staff, functional systems, and proven revenue streams. The seller often provides transition support, introducing the new owner to patients and offering guidance during the handover period.

This approach allows new ODs to step into a practice that’s already generating income and then gradually improve it over time. You’re not trying to build Rome in a day. You’re taking something that works and making it work better—refining systems, upgrading technology strategically, enhancing patient experience, building on an existing foundation.

Buying an existing practice typically allows doctors to earn more than they would in an associate role, and to do it sooner. You learn practice management while continuing to develop clinically. You avoid the volatility and uncertainty of a cold start while still gaining all the benefits of ownership.

The path to ownership isn’t about having everything perfect before you begin. It’s about progressive improvement once you start.

 

The Autonomy Factor: More Important Than You Think

If you asked most optometry students what matters most in their career, clinical autonomy might not top the list. Income, work-life balance, location—these tend to dominate the conversation. Autonomy feels like a luxury, a “nice-to-have” rather than a necessity.

But talk to optometrists who’ve worked as associates for several years, and many will tell you the same thing: the hardest part of the job often isn’t the patients. It’s the lack of control over how you practice.

When you’re an associate, someone else decides what equipment the practice invests in, which diagnostic tests you can routinely offer, how long appointments should be, what the office culture looks like, how staff are trained and managed. You work within someone else’s vision of what optometric care should be.

As an owner, you have control over all of it. You determine your clinical protocols and care philosophy. You decide what technology to invest in and when. You set appointment lengths that allow you to practice the way you believe is right. You hire staff who align with your values and build a culture that reflects how you want to work. You shape the patient experience from the first phone call to the final follow-up.

This matters more than most people realize. Burnout in optometry—when it happens—often isn’t about seeing too many patients or working too many hours. It’s about feeling constrained, about being unable to practice medicine the way you think it should be practiced. Ownership removes those constraints. It allows you to build a practice that actually aligns with your professional values.

That’s not a luxury. That’s career sustainability.

 

The Financial Reality: How Practice Acquisition Actually Works

Student loan debt casts a long shadow over career decisions for new optometrists. When you’re carrying six figures of educational debt, the idea of taking on additional financing to buy a practice can feel overwhelming, even absurd. Better to play it safe with a salaried position, right?

But here’s what that perspective misses: optometry is one of the few professions where practice acquisition financing is well-established and relatively accessible.

Banks understand the optometry business model. They know how practices generate revenue, what the profit margins typically look like, how patient retention works. They have decades of data showing that optometry practices are stable, predictable businesses. Because of this, lenders are often willing to finance 100% of a practice purchase for qualified buyers—no down payment required.

When you buy a practice with financing, you’re not reaching into your personal savings to pay off the loan each month. The practice revenue services the debt. The business pays for itself. You’re leveraging borrowed capital to acquire an asset that generates the income needed to repay the loan, while you draw owner compensation on top of that.

Yes, your student loans still exist. But now you’re building equity while you pay them down. The practice debt decreases over time while the value of what you own increases—assuming you manage the business competently, which most ODs are perfectly capable of doing.

This is leveraged wealth building. It’s how people in many industries build significant net worth without starting with significant capital. And it’s more accessible to new optometrists than most realize.

 

Ownership as a Long-Term Financial Strategy

Think about retirement planning for a moment. As an associate, your retirement strategy probably looks something like this: contribute to a 401(k) or IRA, save what you can, and plan to work clinically until you’re ready to stop. Your retirement security depends entirely on how much you’ve managed to set aside from your salary over the years.

Practice owners have a different equation. They typically build retirement savings through traditional accounts just like associates do. But they also own an asset—the practice itself—that’s usually worth somewhere around one year of gross revenue, sometimes significantly more if the practice is particularly well-run.

When it’s time to retire, owners have options. They can sell the practice outright and walk away with a lump sum. They can bring in a successor doctor and gradually transition ownership while stepping back from clinical work. They can reduce their hours while the practice continues generating income through associate doctors.

Ownership transforms your career from a job that pays you for working into a financial strategy that builds wealth over time. The practice becomes both your income source and your retirement fund, working simultaneously rather than competing for the same dollars.

That’s a fundamentally different financial position than most associates will ever achieve, regardless of how disciplined they are with savings.

So Is Ownership Right for Every New OD?

No. And that’s perfectly fine.

Some optometrists genuinely prefer associate work. They value the simplicity of showing up, practicing excellent clinical care, and going home without thinking about staffing issues, equipment repairs, insurance negotiations, or marketing strategies. They want to be doctors, not business managers. That’s a legitimate preference, and there’s no shame in it.

Others might want ownership eventually but genuinely need more clinical experience first, or have personal circumstances that make the timing wrong, or simply aren’t in the right geographic market to find a suitable practice to purchase.

The problem isn’t choosing associate work. The problem is choosing it by default because you never seriously considered the alternative, or because you assumed ownership was out of reach, or because no one explained how it actually works.

The most successful optometrists—whether they end up as associates or owners—make informed, intentional decisions. They understand the trade-offs. They choose their path based on their actual priorities and circumstances, not based on assumptions or incomplete information.

Starting With Education, Not Commitment

If you’re a new OD or still in school, you don’t need to decide right now whether ownership is right for you. But you should educate yourself about it while the options are still open.

Learn how practice valuation works—what makes a practice worth $500,000 versus $1 million, and why. Understand how lenders evaluate potential buyers and what they’re looking for in terms of financial qualifications. Get familiar with the metrics that indicate a financially healthy practice versus one that’s struggling. Talk to practice brokers, to young practice owners, to lenders who specialize in optometry.

Explore ownership on your timeline. Maybe that’s two years out. Maybe it’s five or ten. Maybe it’s never, and you decide associate work is genuinely the better fit. But make that decision with your eyes open.

The path that no one talks about isn’t risky because it’s reckless. It’s powerful because it’s informed.

For many new optometrists, understanding practice ownership early—even if you don’t act on it immediately—opens doors that would otherwise stay closed. It gives you options. It changes how you think about your career trajectory and what’s possible.

And for some of you, it might just be the path that leads to the kind of professional freedom you didn’t know was available.

Tammi Sufficool, MBA

President Practice Start-Ups / New Business Advisor

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When optometrists begin exploring ownership, one question comes up again and again:

“Should I start an optometry practice from scratch or buy an existing one?”

Both are viable and valuable paths to ownership. That said, many ODs overlook the advantages of buying an established optometry practice, especially early in their careers.

If ownership is on your horizon, determining which option is right for you deserves real consideration. Let’s compare your potential optometry practice ownership options.

Cold Start vs Established: Understanding the Landscape

Starting from scratch allows full control over branding, patient experience, technology, and clinical philosophy. It’s a clean slate that lets you turn your vision into reality. Opening cold can come with a longer ramp-up, initial marketing demands, and a period of negative cash flow while patient volume builds.

Buying an existing practice provides immediate infrastructure: a patient base, staff, systems, equipment, and a known reputation in the community. The risk can be lower if you acquire a practice with consistent revenue and growth potential.

Both routes require preparation, financing, and vision. The key is to understand which fits your goals, lifestyle, and risk tolerance.

The Benefits of Buying an Established Practice

Here’s what makes buying worth a closer look:

1. Immediate Cash Flow
Instead of waiting months for a cold start to reach profitability, an established optometry practice can provide day-one income. The exam lanes are already busy, patients are scheduled, and revenue streams are active. This stability allows you to focus on patient care and growth strategies.

2. Built-In Patient Base and Staff
You’re not just purchasing equipment, you’re inheriting relationships. An established patient base means you walk into a schedule with loyal patients who already trust the practice. A trained team is often in place too, familiar with systems, workflows, and patient needs. That reduces the steep learning curve of hiring and training, giving you more time to lead and grow.

3. Shorter Ramp-Up to Growth
Purchasing an existing optometry practice lets you skip the ramp-up stage. With infrastructure, processes, and reputation in place, your energy can go toward improving efficiency, introducing new services (like specialty care or optical upgrades), and building equity.

4. Established Brand Recognition
Community recognition is an asset you can’t buy overnight. An established practice already has name recognition, goodwill, and word-of-mouth referrals working in its favor. The existing awareness can lower your marketing costs and help patients feel continuity during the ownership transition. However, you can rebrand or refresh the image if needed when the time is right.

5. Applying for Financing
Banks and lenders are willing to back acquisitions because they can evaluate the practice’s financial track record. This typically makes loans easier to secure, often at better rates, and lowers your personal financial risk. With predictable revenue already flowing, you’re better positioned to manage debt service while still paying yourself a salary.

6. Reduced Risk
Every new business carries risk, but an existing practice has already proven it can thrive in its location and community. Demographic fit, patient demand, and business model are validated. You’re building on a foundation with a history of success.

7. Opportunities for Immediate Value-Add
Walking into a well-oiled machine doesn’t mean you can’t make it your own. Established practices often have untapped opportunities like modernizing technology, improving marketing, adding specialty services, or optimizing operations that can quickly increase profitability. In other words, you get the stability of a proven business with the potential of innovation.

Ownership Without Overwhelm

Ownership doesn’t mean burnout. The right practice, especially in communities underserved by health care, can give you both professional freedom and work-life balance. Purchasing an existing optometry practice oftentimes has the opportunity to keep the seller on board during the transition. This is great for a buyer to receive mentorship and continuity for patients.

No matter where you’re at in your optometry career, if you’re exploring ownership options, consider adding buying an established practice to your shortlist. You might be surprised at what’s available, affordable, and aligned with your goals.

Want Help Comparing Your Options?

Williams Group helps optometrists evaluate both established practice purchases and start-up paths for ownership. We’ll help you identify practices that match your vision or build an optometry practice from the ground up.

Explore optometry practices currently on the market or schedule a one-on-one call to discuss ownership strategies and determine which path fits you best.

Schedule a call with Brad Rourke, CPA, ABV to explore ownership strategies or browse optometry practices currently available on our marketplace.  

Brad Rourke, CPA, ABV

President + CEO
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You’ve put in the hours. Mastered patient care. Navigated the demands of associate optometrist life.
Now what?

If you’re feeling the slow burn of ambition, you’re not alone. Thousands of optometrists are beginning to ask the same question:

“Is now the right time to own my own optometry practice?”

If you’re asking, you’re closer than you think.

Why Early-Career Optometrists Are in a Prime Position to Buy a Practice

Most optometrists believe they need decades of experience or a massive savings account before considering practice ownership. But here’s the truth:

– You may already have the clinical skills.
– You’ve seen how optometry practices operate (for better or worse).
– You know how to build strong patient rapport.
– You have growing professional confidence.

That’s the same foundation many successful practice owners had when they made the leap.

Buying an established optometry practice gives you instant cash flow, existing patients, trained staff, and a built-in reputation. You’re starting with momentum.

But I’m an Associate. Should I Still Consider Ownership?

Absolutely. In fact, many associate optometrists make excellent owners.

You’ve worked in high patient volume environments, learned streamlined operations, and mastered time management. These are invaluable assets when stepping into ownership. Your ability to manage workflow and production will serve you well in a practice of your own, especially one with growth potential.

What’s more, you may already be feeling the limitations:
– Controlled schedules: Your day is dictated by preset hours and appointment slots, leaving little flexibility for your personal life or your preferred approach to patient care. You’re operating within someone else’s framework.

– Cap on earning potential: No matter how hard you work or how much value you bring, your compensation may be capped. Raises and bonuses are slow to come, and your financial future feels dependent on others’ decisions, not by your own effort or ambition.

– Lack of autonomy in patient care and business decisions: You may feel constrained by policies that prioritize numbers over patients or decisions that don’t align with your vision of excellent care. On the business side, likely have little influence on investments, technology, or marketing, even when you have ideas for growth.

Optometry practice ownership restores those freedoms and more.

The Case for Buying Now, Not “Someday”

Waiting for the perfect moment often turns into waiting forever. Here’s what we see from optometrists who decide to buy now:

– Equity building from day ong
– Full control over patient care
– Tax advantages of business ownership
– Improved lifestyle, especially in rural or suburban settings
– A clear path to long-term financial independence

Best of all, there are optometry practices for sale right now that are affordable, thriving, and ready for new ownership.

What’s Next?

If the idea of optometry practice ownership excites you, even just a little, you owe it to yourself to explore what the future could look like. It’s possible and it’s often more attainable than you’ve been led to believe.

Contact us to schedule a confidential conversation. We’ve helped hundreds of optometrists find the right practice, at the right price, in the right community.

It’s time to work for yourself.
Let’s build your future.

Ready to talk about your ownership goals? Schedule a call with Brad Rourke, CPA, ABV or browse optometry practices currently for sale on our marketplace.  

Brad Rourke, CPA, ABV

President + CEO
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When most optometrists imagine buying an optometry practice, their minds often go straight to major metro areas, with dense populations, sleek offices, and endless amenities.

But in today’s market, some of the most high-potential and overlooked ownership opportunities are in rural, small-town communities.

If you’re exploring ownership, don’t dismiss these markets too quickly. Rural optometry practices can offer higher income, greater impact, and a better lifestyle than you’d expect.

Why Rural Optometry Practices Are Often Undervalued (And Why That’s a Good Thing)

There’s a common misconception that a lower population equals lower opportunity. In reality, the opposite is often true.

Here’s what buyers are discovering in rural and underserved markets:

1. Less Competition, Stronger Patient Loyalty
Fewer eye care providers in the area means your presence carries more weight. You’ll quickly become the go-to provider in the community. With fewer alternatives, patients remain loyal and referrals come naturally.

2. Lower Purchase Price, Higher ROI
Rural optometry practices typically cost less to acquire. That can mean:

  • Lower debt
  • Faster break-even
  • Stronger profit margins

It’s one of the most cost-effective ways to build equity while owning a business that produces immediate cash flow.

3. High Demand for Care, Especially Medical Optometry
Many small towns are healthcare deserts. These underserved communities lack access to quality eye care. By adding medical optometry or specialty services (like dry eye, myopia control, low vision), you can accelerate growth and fill a critical healthcare need.

4. Better Work-Life Balance
Rural life offers more than a slower pace. It delivers tangible lifestyle benefits:

  • Shorter commutes
  • Affordable cost-of-living
  • More time for family and hobbies
  • Less burnout, more autonomy

What About My Family, Schools, and Career Growth?

One of the biggest hesitations we hear from buyers is:
“Will my spouse be able to find work? Is the education good enough for my kids? Is this a safe community to raise my family? Will I be professionally isolated?”

These are exactly the kinds of questions you should be asking and the answers may surprise you!

  • Community Opportunity: Many rural communities are growing hubs for healthcare, education, manufacturing, and technology. With flexible and remote work options, spouses with flexible careers often find more freedom and less stress in smaller towns.
  • Local School Systems: Don’t assume smaller means subpar. Many rural school districts are well-funded, community-driven, and offer smaller student-to-teacher ratios. You may find better academic performance and engagement than in some larger suburban districts.
  • Professional Development: Owning a rural optometry practice doesn’t mean working alone. With state associations, CE opportunities, online peer groups, and even local business meetups, you’ll stay connected and supported in your career growth.

Real Growth Happens Where You’re Needed Most

You want to build something meaningful. Owning an optometry practice in a rural community gives you that chance every day. With fewer providers and greater need, you’ll have:

  • More control over how your practice evolves
  • The opportunity to implement new technology and services
  • Deeper community relationships and impact
  • Ability to create a practice that reflects your values

When you’re the only optometrist (or one of a few), you’re a leader in local healthcare.

If your goal is to build equity, control your career, and make a lasting impression, a rural optometry practice may be exactly what you’re looking for.

Ready to Find the Right Rural Practice?

At Williams Group, we’ve worked with hundreds of optometrists who relocated to small towns where they grew their practices and improved their lives. 

Let’s find the right opportunity. We’ll help you evaluate communities, practices, and lifestyle fit. And the numbers.

Talk with Brad Rourke, CPA, ABV about small-town ownership opportunities by scheduling a call or discover high-value rural practices currently for sale on our marketplace.  

Brad Rourke, CPA, ABV

President + CEO
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Selling an optometry practice is a significant decision. It’s more than just numbers. It’s about understanding the process and feeling comfortable. Which is why our clients come back to us time again to guide them through the ownership transition process.
 Dr. Jennifer Davis shares her experience: 
What areas of your practice have seen the most impact? Do you have any statistics you can share? 
Jennifer E. Davis: “The most impactful aspect was being able to feel comfortable with the process of the buyout. I don’t have any statistics to share per se, but Bill Nolan was our facilitator and he had years of experience leading practice transitions and um acquisitions. I really wanted a neutral third party. So, emotions wouldn’t get in the way. And Williams consulted, consulting, created a fair and professional environment really to have those often-tough conversations and just a platform to know which questions to ask. Um for me having a sounding board to express my concerns and to ask questions to an experienced professional was everything it just really gave me the peace of mind that I needed.“
Why did you choose/continue to choose Williams Group? 
Jennifer E. Davis: “I actually wasn’t the one who chose Williams Group. Um The doctor whose practice I was purchasing, chose Williams and he as a practice seller and I as the practice buyer split the consulting fee 50 50. Um Throughout his entire career, the practice seller had always recognized the importance of practice management. And the Williams group was one of the consulting companies he had used in years past. Um but because he remained impressed with what they had previously offered and what they consistently brought to the table, having them be the ones to facilitate, facilitate our practice transition was a no-brainer.”
At Williams Group, it’s important to develop a strategy for your ownership transition, to understand the fair market value of your practice, address all of your complex questions, receive the guidance and attention you need, and to help you achieve a successful practice transition.  
If you’re seeking an ownership transition within the next 12 months, we invite you to learn more about how we can support you.  
Schedule your complimentary call with Tammi Sufficool, Executive Vice President of Practice Transitions today!

Times are changing, today’s optometrist needs to be aware of how a new market force may impact the transition of their office.

In some ways, the marketplace for transitioning an optometric practice has never been better.

Over the last several years, the value for optometric practices has remained constant. All of the myriad challenges faced by optometry, such as managed care, big-box retailers, online providers, etc., have been priced into the marketplace. Since the recession in 2008, the financing and capital markets have responded well and provided the necessary capital to young doctors desiring to buy a practice.

Those two factors, along with the increase in baby boomers reaching retirement age, have made the transition marketplace extremely active. Any young optometrist desiring to be in private practice ownership will have no trouble locating a very good practice to buy and will find the capital necessary to finance the sale.

However, a new player has entered the marketplace and is affecting the sale of the traditional optometric office.

 

Consolidators Come Out

For many years, most optometric practices were sold in the classic conventional manner. As a doctor reached retirement age, he or she would start looking for a new or younger doctor wanting to be in private practice and start the negotiations to make the sale happen.

The traditional market to buy an optometric office was a young doctor, three to five years out of school—many of whom associated with the practice as an employed doctor before deciding to move forward with the purchase. This model is still alive and well, and many offices transition ownership in this way.

In the last five years, however, a new market force (often referred to as “consolidators or aggregators”) has entered the scene. Consolidators or aggregators are generally for-profit groups or large medical groups desiring to buy their way into the market in a particular region of the country. Many of the aggregators and consolidators are gaining access to venture capital markets, allowing these groups to fund acquisitions and gain a large footprint regionally.

From a strict business model standpoint, having consolidators or aggregators in the marketplace can be a good thing.

Undoubtedly, it has changed the supply and demand dynamic while perhaps also altering the traditional method for selling or buying a practice. Capitalism is built on this principle of supply and demand, and it operates in all markets, including optometry practices.

The ebb and flow between sellers and buyers is an active force of every marketplace. Today’s optometrist needs to be aware of how it may impact the transition of their office.

For the selling optometrist, having another demand-side “customer” is a positive trend. But, like any new force in the marketplace, there is a certain disruptive quality as both sellers and buyers adapt to this new market force.

 

3 Transition Points

A few important points should be kept in mind by the doctors entering this stage of their career if they are considering a complete sale of their office.

First, for a consolidator or aggregator, buying your practice is a business transaction and does not involve any emotional qualities as it may for the selling doctor. It is a good idea to stay focused on the terms and conditions of the deal and realize that it’s business and not personal.

Second, you may find that the purchase price offered for your practice is acceptable, but the offer for your continued employment after the sale is not what you had wanted. It is important to realize in these types of transactions that you cannot have it “both ways.”

Before entering the process, do some soul-searching so you are clear on what is most important to you. Stay focused on achieving those deal points. If long-term employment is the most important issue to you, negotiate those points first and realize you may have to concede some of the purchase price to get the deal done.

Finally, not all consolidators or aggregators are willing to cash the seller out at closing, as some may require you to carry some of the purchase price back through a promissory note.

If your retirement portfolio does not allow for that much risk, this type of a transition strategy may not be for you.

 

Are You Ready?

For many years, most optometrists who graduated from school in the mid-’60s or before have believed (and were taught) that their practice would be a substantial part of their retirement portfolio. As practice values have declined over the years and the cost of optometric education for young doctors has skyrocketed, selling a practice is not easy.

These two factors have collided at a time when most optometrists are planning on a return on the capital and asset investment of their practice to help fund or supplement their retirement.

The exit strategy is not complicated, but must be thought through and strategically planned in order to reduce stress while maximizing your return on investment. Determine the time frame for the transition out of the practice within a year or two. This will give you the time needed to plan your work and work your plan, as it is usually a very personal event for most optometrists.

The timing of the sale, and perhaps retirement, is something only each individual optometrist can answer for themselves. There are many factors that go into making this decision, not the least of which is how a doctor has planned for their retirement.

Once you have decided to leave your full-time-practice, implementing an exit strategy by bringing in an associate doctor to buy the office, or selling your practice outright or to a consolidator, should move forward.

For many doctors, their practice has been their life’s work. Transitioning to the next phase of life is both emotional and rewarding. With enough lead time and thoughtful planning, you can make your exit strategy work for you. 

 

Ready to start planning your exit strategy? Learn more about our Transition Programs or contact Bill Nolan below.

Bill Nolan

Executive Vice President of Williams Group
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Apple Eyecare PC was struggling with net profit and felt some of the growth could be improved if they got help with some job positions where they felt bottlenecked. Their management team included the owners and the office manager who envisioned changes in job responsibilities and procedural changes, but they seemed slow and hard to facilitate at times. They needed outside prospective and encouragement to make the changes they knew they needed.

The owners sat down in December to review the past year and plan for the new year. They agreed that they had a good year but not a great year and knew they could do better. While they could continue their current path, they envisioned a lot more for their practice.

The senior doctor, having used consultants twice before, felt confident that this was a great time to bring in more consultation to help make the changes necessary for greater growth in the new year. While there was some concern for payback on the consultation fees, they agreed to go forward with Williams Group as they were instrumental in the buy-in agreement of their second doctor a few years earlier.

Apple Eyecare PC had benefited from the services of consultants twice before, but they agreed, “No other consulting group taught them what Williams Group did. Providing us management tools and guidance to improve patient flow, profit, employee training, and role definition was invaluable.”

The doctors of Apple Eyecare PC noted, “By far, the best part of our consulting was the suggestions by Williams Group for the doctors’ delivery of professional skills in the lane and the evaluation of time management by the doctors in the patient delivery process. Also, our ability to track performance closer to real time has improved greatly; monthly production is consistently up and quite predictable; patient flow is smoother; patient experience is much better/more streamlined and they leave here better educated to make good decisions for their vision and eye health.”

Another positive Apple Eyecare is experiencing is that they are not slogging through minutiae. “The details are more and more running themselves or being run well by staff, and we [the doctors] are directing the bigger picture. This means personal time is more enjoyable, and there’s less concern about what’s happening back at the office.”

Overall, Apple Eyecare PC’s annual gross increased, and they have been able to raise wages and increase vacation time while still growing the practice. “We would not have been able to do this as easily if we had not made the changes suggested by Williams Group. While there was some resistance by the staff with some of the changes suggested, we were able to demonstrate the benefits of the changes and have adapted to the changes well over time. It was very helpful to have a consultant to encourage, redirect, and revisit the items under change as we slowed, sidetracked, or just needed encouragement to keep on the path. We feel we are headed for a brighter future!”

 

Learn more about our Transition programs.

Bill Nolan

Executive Vice President of Williams Group, President of Practice Transitions
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Most doctors go through a long process of deciding what to look for when buying a practice. Unfortunately, during their four years of professional education, there isn’t much covered on the business aspects of purchasing a practice or the realities of ownership. The answers to these concerns will ultimately be premised on one thing: the determination of what a practice is worth.

REALISTIC VALUATION

Over the last several years, the value of optometric practices has declined. Twenty-five years ago, a standard rule of thumb for evaluating practices would be some multiple of gross revenue. It was quite common to expect one year’s gross revenue—meaning that if I had a $600,000 practice, I would expect to sell it for nearly $600,000.

Over the last two decades, traditional valuation formulas no longer apply, and the real intrinsic value is closer to 50% or 60% of a year’s collected revenue. An optometric practice is like any business—it is worth a combination of only two things: assets and earnings. It might be helpful to have a common understanding of what optometric assets and earnings really represent. In the following few paragraphs, we’ll look at the commonly accepted formulas used to appraise an optometric practice.

DEFINING ASSETS

First, assets are either tangible or intangible. Tangible assets would include items such as ophthalmic equipment, computers, frame inventory, contact lens inventory, furnishings, and supplies. Some examples of intangible assets would be goodwill or a covenant not to compete. In my experience, the ophthalmic equipment—a large part of any optometric practice asset base—is the most difficult for which to determine value.

Hard tangible assets can be valued using one of three methodologies: book value, replacement value, or fair market value. An understanding of what these terms mean will help you get a better grasp of what these assets are worth.

  • BOOK VALUE is simply the value of an asset carried on the books of the business. This value generally is acquisition costs net of accumulated depreciation. For example, if in 1990 you bought a slit lamp for $18,000 and its current accumulated depreciation is $12,000 on the company books, this asset would have a value of $6,000.
  • REPLACEMENT VALUE is the cost of replacing that piece of equipment in today’s market. Using the slit lamp example, if the slit lamp (which was purchased in 1990 for $18,000) was destroyed in a fire and needed to be replaced, its replacement value may be closer to $22,000 or $23,000—the cost of replacing it brand new in today’s market.

VALUING EQUIPMENT

Because it is not traded regularly in a public marketplace, assessing equipment’s value is difficult. It is often advisable to bring in a third party to appraise ophthalmic equipment. There are many companies that specialize and deal in previously owned equipment, and they can provide this service for your practice.

If buyer and seller cannot mutually agree on the value of assets, it is advisable to hire an independent appraiser.

  • FAIR MARKET VALUE is the most subjective of the three accounting concepts, especially as it applies to ophthalmic equipment. It is nonetheless the concept that is most often applied to determining the value of hard tangible assets like equipment.

WHAT IS GOODWILL WORTH?

Once all tangible, physical assets—equipment, frames, contact lenses, etc.—are accounted for, some value needs to be put on the goodwill or “blue sky” of the practice.

Though often misunderstood, goodwill is the expectation of future earnings based on the management skill, know-how, and favorable reputation a business has with its customers or patient base. After an optometric practice is purchased, goodwill is generally transferred to the new doctor, and thus has a rightful place as an intangible asset.

There are many ways to look at the overall value of a practice. Typically, they are the net value of assets, capitalization of earnings, and percentage of revenue stream (though the last is useful mainly for checks and balances for the other two methods).

  • NET VALUE OF ASSETS is a methodology that determines the net fair market value of the assets previously discussed, including goodwill. Net value of assets, of course, deducts any outstanding debt on the practice at the time of sale.

For example, if a $600,000 practice appraised for $275,000 and is still encumbered by $200,000 of debt, the value of the assets would be $75,000.

In many cases, when an associate doctor buys into an existing practice, he or she may do so through a combination of cash and acquired debt. For example, if I agree to a purchase price of $275,000 to buy a 50% interest, and the practice had $100,000 of outstanding debt, the terms of my buy-in would be $225,000 in cash and $50,000 in acquired debt.

  • CAPITALIZATION OF EARNINGS values the net earnings of a business as an investment. A cap rate is determined, which is an assumed return on investment for the buyer. Using this methodology, no specific value is determined for the assets, but rather the assets’ ability to produce income.

The trick in this methodology is to determine the true net income of the business. Generally, the net income of the business is all dollars paid to or on behalf of the equity owners, including doctor salaries, allocation of income for things like automobiles, country club memberships, certain insurance policies, and funded retirement accounts. From this total earnings pool, an amount is subtracted that represents the optometric compensation. The balance is the true net earnings of the business. This dollar figure is divided by the capitalization rate to arrive at the overall value of the practice as an investment.

  • PERCENTAGE REVENUE STREAM is used to determine some sense of value. Currently, good practices are appraising for between 50% to 65% of a year’s collected receipts. This means a $500,000 practice will appraise for between $250,000 and $300,000.

This multiple of revenue is helpful because many banks will not lend money for a practice purchase if the appraised value exceeds 70% to 75% of collected revenue. If a buyer pays more than these multiples as the appraised value, the practice will have a hard time with cash flow to provide an adequate salary for the optometrist and the debt service needed to buy out the practice.

OTHER ISSUES

As important as determining the intrinsic value is to this process, it is by no means the only issue to consider. When buying a dream practice, remember that an optometric practice is unlike anything else you will do in your financial life. There is a small market for potential buyers and sellers wishing to transfer ownership of a practice. Most are other optometrists, which by definition limits the liquidity of the marketplace. Occasionally, some other entity may buy a practice, but these are few and far between.

Location, demographics, and economic vitality of a community are important issues to address when buying your first practice. One additional factor often overlooked is where optometry has a strong presence and is supported by the state’s legislative practice act. There is no doubt that in certain regions of the country our profession has thrived and been a key player in the healthcare debate due to hard-fought battles and victories in state legislatures.

APPRAISING EYEWEAR INVENTORY

Frame and contact lens inventory is the easiest of the assets to appraise. Generally, these items will go into the appraisal at wholesale acquisition costs and be discounted for any obsolete or damaged merchandise. If the practice has a 600-frame inventory, it would typically be appraised at between $28,000 and $33,000, net of any adjustments for obsolete material. This process continues until all assets in the practice have an established value.

Another key component is the saturation levels of optometrists to populations. The American Optometric Association (AOA) reports a desirable level should be one O.D. for every 7,500 residents in a community. That means that if your target market has a level of saturation of one optometrist to a population of 4,000, you will be in a very competitive and difficult market for short-term growth. Due to the competition in this market, you should be sure to look for a strong and vibrant practice to purchase.

Intrinsic value, as well as location, optometrist/population ratios, demographics, etc., should all be analyzed and weighed. Applying the best of these important factors will increase the odds of successful practice ownership.

Need A Practice Evaluation? Contact us today to request a Free Consultation.

Bill Nolan

Executive Vice President of Williams Group
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John P. Brandt Jr., O.D. and his wife Karen, Practice Administrator, of Brandt Eyecare were embarking on an emotional journey to continue their 68-year-old practice in Lock Haven, Pennsylvania. John’s father, had opened the practice in this rural area when he first began his ophthalmology career and the last thing that the couple wanted to have to do was close this legacy practice. Neither of them were interested in having an ownership role overseeing staff and administration anymore so, they set their sights on a consulting group to help with transitioning the practice over to new folks, as then the two of them could solely do what they love…practice optometry.

In the mid 1990’s, the Williams Group had helped integrate Dr. Brandt Sr.’s ophthalmology practice with Dr. Brandt Jr.’s optometric practice and the changing trends in both specialties. When the time came to begin the natural transition toward retirement the Brandts turned to the Williams Group again for guidance after such a successful consulting experience. They were confident in this partnership once again. After a very emotional roller coaster with the expected ups and downs of selling a company that had been in their family for so long. The Brandts were able to sell their rural practice with the help of the Williams Group Transitions team.

“Transitioning our practice has been a daunting endeavor; however, the outcome is far better than our expectations. Williams Group provided us with excellent advice and tools to move this process forward. We are grateful not only for the professional guidance but also for the friendship that has developed throughout this process”, they noted.

Thomas Breen, Vice President of Practice Transitions, says it perfectly, “Negotiating the practice is the hardest part of any selling. It is both an art and a science. There is a lot of math involved; wrangling of numbers. Then the art of what both the buyer and the seller want comes into play. It takes time and patience.”

Karen states, “They helped us attain the goal of keeping our doors open and we are very grateful that the entity to do so is someone whom we respect and admire.”

The Brandt Eyecare practice was purchased by Nittany Eye Associates and will now be run under Dr. Michael Talone, Dr. Michael Cymbor and Tim Grattan. Nittany already has four other practices across the nation.

Learn more about our Transition programs.

Tom Breen

Vice President of Practice Transitions
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