How much do Optometry practices sell for in 2023?

Optometry practices are often seen as a lucrative investment opportunity, and for good reason. In 2023, the demand for optometry services is expected to continue to grow, driven by an aging population and increasing rates of chronic eye conditions such as glaucoma and cataracts. This demand, combined with the relatively low cost of entry for optometry practices (compared to other medical specialties), has made optometry practices an attractive option for those looking to invest in the healthcare industry.

So, how much do optometry practices sell for in 2023? The answer, unfortunately, is not a simple one. There are a number of factors that can influence the sale price of an optometry practice, including location, size, patient base, and the overall state of the economy. That said, there are some general trends that can give us a sense of what to expect when it comes to the sale price of optometry practices in 2023.

The primary driver of value of an optometry practice is cash flow.  For example, a practice with $1,000,000 in annual receipts that produces $400,000 in cash flow for the owner is worth more than a practice with $1,000,000 in annual receipts that produces $150,000 in cash flow for the owner. (And yes, we have seen both of these examples).

One factor that can significantly impact the sale price of an optometry practice is location. Practices located in densely populated urban areas or affluent suburbs are generally more valuable than those located in rural areas or economically disadvantaged neighborhoods. This is due in part to the higher demand for optometry services in these areas, as well as the higher cost of living, which can make it more difficult for optometrists to attract and retain patients.

The size of the practice can also be a factor in the sale price. Generally, larger practices (those with multiple optometrists and a larger patient base) are more valuable than smaller practices. This is because larger practices have a greater potential for revenue generation, as well as a more established reputation and patient base.

The patient base of an optometry practice is another important factor in the sale price. Practices with a diverse patient base (including a mix of age groups and insurance types) are generally more valuable than those with a more narrow patient base. This is because a diverse patient base provides a greater potential for revenue generation and reduces the risk of financial instability due to changes in the healthcare landscape.

Finally, the overall state of the economy can also influence the sale price of optometry practices. During times of economic downturn, the sale price of optometry practices may be lower due to reduced demand and a general sense of uncertainty. Conversely, during times of economic growth, the sale price of optometry practices may be higher due to increased demand and a more positive outlook for the future.

So, what can we expect when it comes to the sale price of optometry practices in 2023? It’s difficult to say for sure, but it’s likely that the sale price of optometry practices will continue to be influenced by factors such as location, size, patient base, and the overall state of the economy. That said, it’s worth noting that the demand for optometry services is expected to continue to grow in the coming years, which may lead to higher sale prices for optometry practices. Ultimately, the sale price of an optometry practice will depend on a variety of factors, and it’s important for potential buyers to carefully consider these factors and do their due diligence before making a purchase.

NEED HELP?

Let us help you on your journey. Our team has extensive experience in the optometry brokerage sphere and can assist you every step of the way. From evaluating the value of your practice and finding the right buyer, to negotiating the sale and handling the transition, we have the expertise to help you maximize the value of your optometry practice and ensure a smooth and successful sale. Don’t go it alone – trust the experts at OptiRova to guide you through the process. Contact us today to learn more about how we can help you sell your optometry practice.