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Goodwill is an often debated topic of practice transitioning. Practices are being sold 60-70% of gross production averaged over the 3 years prior to the buyer’s entrance into the practice. This is a range that is accepted, calculated and has a good track record for successful practice transitions. What happens when you have a great practice but you don’t agree on the sale price as described above? Many optometrists that are buying a practice hear from the consultants that value is by the numbers. If you are an optometrist looking to purchase a practice look beyond the numbers, look at the intangibles that will determine future success. Yes, the numbers must add up, but what is the patient loyalty built on an individual or on the practice. How many of the patients are leaving when the seller leaves? How many of the staff are leaving when the seller leaves? Initially, $50,000 is a chunk of money for a new buyer, however, when the practice is built on patient loyalty that number is negligible 5-10 years from now. How much value is built into the stock price of Apple that centers around a great track record, continued growth, great returns, and a product that has a loyal following?
