Having a family has taught me a lot about planning. As each new child is added, we as parents need to make adjustments. When my wife and I had our first child, we made plans to make sure we arrived at our destination on time and with all necessary items. As we added child number two and now child number three, it is apparent that poor planning–or lack of planning–leads to many undesired effects.
Owning an optometry practice is no different. Each day as the practice grows it comes closer to the day you will exit ownership. Those optometrists who do not properly plan and adapt their plan over time are the practice owners that never find a qualified buyer. Where are you in the process of selling your practice?
- Sell when BUYER arrives – When opportunity knocks you should open the door. A friend of mine was considering selling his veterinary practice to an interested associate. However, my friend was only in his early 50s and not ready to retire, so he told his associate it was not time. To his dismay, the associate left the practice and started his own. My friend was surprised that he lost his best potential buyer because he, as the seller, was not ready when the buyer was ready. Always be ready.
- Sell at end of career – This is a great option if you have associates in place to buy you out. In fact, if you let them start buying you out years in advance, when you are ready to retire they will make the last payment and you are FREE. This does not happen without careful planning. Planning your exit strategy now will afford you the opportunity to sell at the end of your career.
- Never sell – Too frequently this is the case of those who own their own practices. Single optometrists work daily to meet the needs of their patients. Then the day arrives that they want to retire. They assume a “for sale” sign can be placed on the front door and someone will buy it, but 400 to 500 practices a year close their doors without a buyer.
- Sell before a BUYER arrives – This is a theoretical approach about always being prepared to sell. Many optometrists do not think about selling their practices, which is unfortunate because they may end up in the “never sell” category above. Buyers are not always available, therefore it is important to keep your practice up to date and always assume that this year will be the year someone offers to purchase your practice. The future looks like it will be run by the BIG optometry groups that can manage all the healthcare and HIPAA changes that occur yearly. To remain small is to run the risk of never selling your practice.
Selling your practice does not have to be a negative milestone in your life. The most satisfied and successful optometrists are the ones who have strategically planned their exit. Exiting ownership does not necessarily mean exiting optometry. Consider the advantages of planning your exit strategy now, even if it’s 20 years before you actually exit ownership. It’s never too early to start.
