- May 8, 2023
- Posted by: New School
- Category: General
The Client:
Dr. Scott owned and operated an optometry practice in Ohio for over 35 years. With approximately $700,000 in annual revenue and 5 employees, he had built a comfortable lifestyle over the years with his take-home pay and other benefits totaling about $275,000 per year. As he approached retirement age, he began to think of selling his practice and securing his retirement. He had been speaking with another optometrist and thought he had a solution when that option fell through. He wasn’t sure how to proceed following this event.
The Challenge:
Dr. Scott contacted OptiRova for help with the sales process. The main challenge was to find a suitable buyer who would be a good fit for the practice and its patients. Dr. Scott wanted a fair but not excessive price for the practice he had built, and it was also important to him that his patients would continue to have a “home” for eye care. After agreeing to an asking price, the team at OptiRova accepted the challenge and started working on the case immediately.
Solution:
OptiRova started the process by conducting a comprehensive practice analysis. This involved reviewing the financial statements, retail pricing structures, and other key factors that could impact the value of the practice. Based on the analysis, OptiRova provided Dr. Scott with a valuation based on multiple models of appraisal, which included the value of the current equipment and fixtures of the practice as well as an estimate of goodwill.
Once the practice analysis was complete, OptiRova worked on identifying potential buyers. The team utilized their strong internet presence and high visibility to market the practice and attract potential buyers. They also networked with professionals and organizations and spoke with colleges of optometry to find suitable buyers.
After identifying several interested buyers, OptiRova evaluated each one based on their experience, qualifications, and compatibility with the practice and its patients. They also worked with Dr. Scott and the purchaser to draft a letter of intent, asset purchase agreement, non-compete and non-solicit agreements, allocation of purchase price, and conducted lease evaluations.
Throughout the sales process, OptiRova provided guidance and consulting services to Dr. Scott. They helped him develop a staff manual, provided hiring and firing guidelines, and offered dispensary improvement recommendations to help him increase financial performance.
Process:
OptiRova listed Dr. Scott’s practice on their website www.optirova.com and received about a dozen inquiries within a month based on the web exposure. OptiRova also listed the practice on Ohio State University’s School of Optometry board and had two responses from that. There was an early prospect that was currently in the U.S. Navy from out of state that wanted to retire from the Navy and move to Ohio who made an offer to purchase. However, when he went to turn in his separation papers, the Navy made him a sweetheart offer and that purchase fell through. Meanwhile, another optometrist that had been contacted directly by OptiRova decided to purchase the practice, and “the second time was the charm” as that purchase went through.
Results:
With OptiRova’s help, Dr. Scott was able to find a suitable buyer and negotiate a fair deal for his practice. He was able to retire at the age of 65 and enjoy the fruits of his labor. OptiRova provided Dr. Scott with a smooth transition, and the new owners were able to take over the practice without any disruptions to the patients or staff. Dr. Scott continued to work part-time for a year to better transition his patients to the new owner.
Conclusion:
OptiRova is committed to helping professional practices in every phase of their life. They have years of experience in working with professional practices and can assist with everything from opening or new ownership to helping transition practices to new owners. Their services include finding buyers or sellers, valuation, practice analysis, assistance with the sales process, guidance and consulting services, and vendor recommendations. OptiRova’s services can help eye care practices navigate the complex sales process and ensure a successful transition for both the seller and the buyer.