Selling your practice at maximum value and a well-planned exit are possible! It begins with preparation 3 – 10 years in advance.
by William K. Vincett, O.D.
Selling your optometry practice is one of the most significant decisions of your professional life. After years spent building your reputation, managing your staff, and caring for your patients, the idea of handing over the reins can feel overwhelming. Your practice is more than just a business—it’s an extension of yourself. It might carry your name, employ long-time staff, and serve a loyal patient base, making the emotional and financial dynamics of a sale particularly personal.
I know this firsthand. In 2019, I sold my 14-doctor practice to MyEyeDr after it had been in my family for three generations. When I took over, I grew it from a two-doctor practice into a Vision Monday Top 50 business—one of my proudest achievements. This growth, however, was no accident. It was part of a deliberate and strategic plan I began at age 50 to prepare for my eventual exit.
Without a fourth generation of Vincett eye doctors to take over, waiting for age or unforeseen circumstances to force a rushed, undervalued sale was not a responsible option. I was also motivated by the harsh reality that I had put a large sum of money back into my practice and was behind in saving and investing for retirement.
I became intentional with my preparation for the eventual sale of my practice, developing a plan several years in advance. To make my practice more appealing to buyers and drive growth, I added associates, invested in marketing, and acquired multiple independent practices. These practices were either integrated into my existing offices or managed as new locations. I purchased them at full valuation—a win for the sellers and for me, as I knew I could improve their profitability.
Ten years after my planning began I sold my practice for maximum-sale value, and achieved financial security and a well-executed exit.
Using proven strategies and templates I developed, I have helped numerous optometry practice clients do the same – grow through associate hires and acquisitions, become more profitable, and eventually sell their practices for maximum value and enjoy a well-planned exit.
Here’s an overview of what preparation looks like.
7 Steps to Prepare Your Practice for Sale
Successful preparation hinges on smart planning, improving cash flow, and understanding the sale options available. You can significantly increase the value of your practice and set the stage for a smooth transition by taking the following steps.
1) Understand Your Practice’s Worth
I recommend a cash-flow based valuation to determine a practice’s current value and uncover opportunities to enhance future value. I have found my cash flow-based approach when performing valuations for clients appeals to today’s savvy buyers, as it provides a more comprehensive and forward-looking perspective—aligning with their focus on future earnings.
In contrast, many appraisers rely on cap rate valuations, which compare similar practices based on current income streams within a market. I find this approach to be highly subjective and inconsistent due to the limited number of public sales in the optometry industry. A cash-based valuation is a more accurate representation of a practice’s true financial worth.
2) Boost Your Profitability
Reducing costs, optimizing revenue streams, and enhancing operational efficiency can make an immediate impact on your cash flow. Strategies like lowering cost-of-goods, improving workflows, team incentive plans, evaluating equipment leases and vendor partnerships, and streamlining patient scheduling increase your EBITDA (earnings before interest, taxes, depreciation, and amortization), which is a common metric buyers reference.
3) Grow Patient Revenue
Maximizing growth potential through adding associates, expanding services, investing in marketing, and acquiring neighboring practices can make your practice more appealing to buyers.
The two most common advisory requests I receive are for clients who desire to add an associate but are unsure of the best way to do so, and for identifying and evaluating potential practices for purchase and assisting with negotiations.
4) Optimize Operational Efficiency
Modernizing workflows, adopting online scheduling and recalls, upgrading technology like EHR and phone systems, and improving team performance are critical to creating a buyer-ready practice.
5) Choose the Right Sales Framework for You
Tailoring your preparation for a sale—whether an internal or external transaction—is crucial for several reasons, including its tax implications. The tax burden depends on how assets are allocated, making it essential to include strategies for legally minimizing taxes as part of your planning process before the sale is finalized.
Each framework offers unique advantages and challenges. For example, internal sales typically yield lower returns (about 2x EBITDA) compared to external sales like private equity deals (5–10x EBITDA). Understanding these differences ensures you choose the right path.
6) Balance Emotional Factors
For many ODs, the sale of a practice involves more than just numbers. Your staff feels like family, and your patients rely on the care you’ve built over decades. While you can’t dictate every post-sale decision, you can take steps to ensure your team and practice values are respected.
The decision to remain involved after the sale—whether for a transition period or long-term employment—must also align with your personal goals. Do you prefer to walk away immediately, or would you enjoy continuing to work in the practice you’ve built? Answering these questions is critical to structuring a sale that meets your needs.
7) Finance the Sale
Financing considerations also play a key role:
- Will you finance the purchase yourself, rely on a bank, or use a hybrid model?
- How are interest rates determined for the buyer?
- Are these options different for internal versus external sales?
By understanding these factors, you can make informed decisions and ensure the financial success of the transaction.
Choosing the Right Advisor
Engage an expert who has shared your journey and is committed to your success.
While attorneys, practice brokers, and accountants may play essential roles in the sale transaction, they typically are not part of the preparation process aimed at increasing practice value. Additionally, they may lack the depth of industry expertise needed to optimally negotiate with optometric practice buyers. Without intentional preparation and negotiations led by a professional experienced in optometric practices, you are almost certain to “leave money on the table.”
As an experienced advisor with comprehensive industry knowledge and shared understanding of your journey, I provide guidance to achieve your desired outcome.
Together, we will navigate every step of the preparation process, and when the time comes to sell, ensure your practice is positioned to be sold at maximum value. In the interim, you will benefit from quickly improved profitability and operational guidance to support your goals.
While your reasons for exiting practice ownership may be common, your vision and timeline for the transition is uniquely yours—and I’m here to help you achieve it with clarity and confidence.
