Thursday, February 18, 2010

Acquisition criteria when buying a medical or optometry practice

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We frequently receive search requests from buyers seeking to acquire medical or optometry practices nationwide. Many buyers have a general idea of their acquisition criteria but may not have considered how these factors affect one another. Here are criteria which prospective buyers should consider when looking for a practice to buy:
  • Profitability of the practice
    1. Total discretionary net income
    2. Ability of practice to support labor value of owner/operator
    3. Ability of practice to service debt on a practice acquisition loan
      • Ability of buyer to get a loan
      • Credit score, earnings history, and years of licensure
    4. Ability of practice to provide return on investment
    5. Opportunity cost to buyer
      • Obtaining employed position vs. acquiring practice
      • Risk/reward and capitalization of the ROI
  • Size of the practice
    1. Fully mature vs. smaller or start-up alternative
    2. Number of providers
    3. Time/effort required to manage business aspects
  • Geographic location of the practice
    1. Personal/family preference
    2. Local economy
    3. Environment for practicing medicine
    4. Growth and sustainability of practice
  • Other qualities of the practice
    1. Work/life balance
    2. Payor mix
    3. Growth opportunity
This is by no means a complete list, but begins to touch on a number of factors which are important when buying a medical or optometry practice. It is important to realize that each practice opportunity is different and should be evaluated accordingly...many buyers who rely exclusively on anecdotal information, rules of thumb, colleague recommendations, and other subjective measures can find it difficult to prioritize their acquisition criteria.

Thursday, February 4, 2010

Business plan and projections for the Optometry start-up practice

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The decision to start-up an optometry practice can be fraught with many concerns. Drafting a "master plan" to account for the various aspects of the project can be helpful when taking an organized approach to the endeavor. Optometry school instruction does not typically cover enough of the business aspects of running a practice to assist in this matter. Beyond the clinical aspects of vision care there are many realities of running a small business that can only be learned through experience and additional assistance. Not all optometrists have the desire to manage a practice or take on the risks involved in opening a private optometric practice, but for those who are prepared for the challenge it can be a rewarding and lucrative route. Writing a business plan which reflects reality is very important. It is crucial to spend as much time on an analysis of the surrounding market and competition as it is on the internal flow and design of the practice itself. Paying close attention to the economics and financial considerations of the practice in terms of its external dynamics will yield the highest chances of success and ultimate staying power. Assessing and catering to the needs of the patient demographic is often more important than addressing every personal like and dislike of the practice owner/operator. The most effective business plans I have seen for optometry practices are those that take the worst care, best care, and most likely scenario into account when calculating projections. This gives a more clear range of possible outcomes. It is also advisable to fine tune the business plan and projections at different stages in the process. This is especially relevant when preparing calculations for underwriting review and credit approval for practice start-up loans. It is essential to retain practice financing assistance, and the services offered at OptometryLoans.com are well geared for the variables that start-up financing candidates will experience when initiating the practice financing process.

Financing Solutions for Vision Care - Optometry & Ophthalmology Practice Loans

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Financing assistance services offered by OptometryLoans.com

100% Financing for Optometry Practice Loans
* Practice Acquisition Financing plus Working Capital
* Start up Financing
* Equity cash out
* Refinancing to Lower Rates
* Real Estate Acquisition
* Partnership Buy In
* Debt Consolidation


Optometry Practice Purchase Financing

* 100% of purchase price plus working capital
* No additional security required other than the practice assets
* Fixed rates for up to 15 years

Optometry Practice Start-ups

* Capital for new practice Startup
* Equipment
* Working capital
* Build-out
* Inventory

Optometry Practice Equity Cash Out
* Existing practice cash out

Optometry Practice Debt Refinancing
* Refinance existing SBA loan to fixed low rate
* Consolidate your bill into one low monthly payment
* Improve your cash flow

Commercial Real Estate Financing
* Up to 100% financing for purchase
* Cash out refinance available
* Terms up to 25 years

Plus, FREE value-added services including:
* Optometry Practice Valuation and Optometry Practice Appraisal
* Cash Flow Analysis

Wednesday, February 3, 2010

Site Map

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Check out the Site Map of our main website for a great overview of our practices for sale and services offered.

Follow Transition Consultants on Twitter

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Please follow Transition Consultants on Twitter: Med_Consultant

We'll be posting updates on new listings and information related to healthcare practice sales, practice valuation and appraisal, financing solutions, and relevant news items.

North Carolina Ophthalmology

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General Ophthalmology practice for sale in North Carolina.

Retiring seller is very motivated to sell. Practice collects ~$580,000 annually, nets ~$300,000 annually. Very competitive asking price of 210k. Fantastic opportunity for an incoming buyer to acquire a practice with a well established patient base and excellent cash flow. This is a very good alternative to starting up an ophthalmology practice from scratch.

This practice has immense potential growth opportunity
by offering cataract surgery, refractive surgery, and plastics. Seller practices a very limited scope of ophthalmology and currently refers many procedures out to other providers.

The current practice emphasis is on medical retina, glaucoma, and workers comp cases. Optical sales also comprise a percentage of the practice sales.

Staff is personable and friendly and will remain with the practice. Excellent, safe community with good schools located within 45 minutes of the greater Triad area for access to social, medical, and major cultural events.

Please inquire here: Transition Consultants - North Carolina Ophthalmology

Monday, February 1, 2010

Professional Highlight - Dr. John Scibal - Optometric Practice Consultant

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Professional Highlight - Dr. John Scibal of Scibal Consulting

Dr. John R. Scibal worked as a practicing optometrist for twenty-five years. He developed one of the largest and most successful Independent Optometric Practices in North Carolina. He has lectured throughout the U.S. and written extensively in all of the major Optometric Journals on a wide-range of practice management topics. He has been a speaker and consultant for contact lens companies Bausch and Lomb and Ciba Vision, as well as medical software companies Eclypsis and Medinotes. Having sold his practice in 2009, he now can devote himself full-time to lecturing and writing, as well as on-site consultation for clients.

Dr. Scibal's company, Scibal Consulting, provides tools and guidance for the Optometrist wishing to create an office culture that is customer-centric, resulting in increased profitability as well as a more pleasant work environment. Its primary emphasis is on staff development and training to create a team which accepts nothing less than excellence. Please visit the Scibal Consulting website for additional information.