Many people do not advance in their careers because they are unable to execute ideas.
For example, many optometrists talk about buying a practice, but after 10-15 years of working for someone else they are still only talking about it, and no closer to buying than when they had the initial thought.
In “Getting things Done” David Allen says action points should be specific. Accomplishing a task like “getting your tires changed” has specific steps. First, you find out when the tire places are open. Second, you research online or at the store to decide what type of tires you need. This method takes a simple “to do” item and breaks it in many parts so it actually gets done. This is the secret used by highly productive individuals.
The list below is an example of taking a big idea like buying an optometry practice and breaking it down to make your dream a reality.
- Compile a list of optometry practices (even ones not officially listed – FOR SALE)
- Contact the owners to communicate interest.
- Interested owners will submit an executive summary (overview of the practice)
- Sign a non-disclosure agreement
- Receive the confidential information memorandum (includes financials, employee information, assets, etc.)
- Submit an indication of interest (pre letter or intent, range of price offer, time frame for transitioning)
- Conduct management meetings (question-and-answer between Buyer and Seller discussing more specifics of the deal)
- Write a Letter of Intent (LOI)
- Perform due diligence (Seller discloses everything about the practice)
- Draft the purchase agreement (attorney drafts an agreement reflective of LOI)
- Show up for closing (bring documents to sign and payment)
- Deal with post-closing adjustments and integration
Closing a deal can seem like a daunting and drawn-out process. Some deals hit snags or a dead end and never get done, but it does not have to be this way. Many optometry practices are successfully changing hands. Taking the time to prepare in advance for each step will help ease the stress of making a deal work. More importantly, this will keep you and the seller focused on the initial goal: transitioning the practice.
Reference: Snow, Bill. Mergers and Acquisitions for Dummies. Indianapolis, Indiana: Wiley Publishing, Inc., 2011. Print.
