All owners and optometrists looking to sell their practices hope to get a price above the industry average. In previous posts regarding the current market value of optometry practices, I stated that practices have been selling for between 55-65 percent of the last three years’ average gross collected. Although sellers are aware of this price range, they believe their practice is an exception. They are mislead. In the cases where practices do sell for more than 65 percent, special circumstances are most likely the cause, like an established doctor within the practice is buying it from the owner. Or, in another scenario, an optometrist pays top dollar to purchase the only practice in his or her hometown. Overall, most practices that are selling fall into a bell-shaped curve of 55-65 percent. So what is the secret to selling your practice for 65 percent or greater?
Secret: Be completely and totally replaceable
For most one-doctor practices being replaceable is almost impossible. However, if you own a practice and you are looking to retire in the next 1-3 years consider employing an associate and gaining production from someone other than yourself. A buyer is much more likely to pay top dollar for a successful practice that does not depend on the selling doctor’s presence in the practice.
