Key deciding points in finding a practice to buy.
By Shefali Ahmadi, OD
Sept. 27, 2023
When you’re ready to set out on your own, buying a practice can be a great launchpad. It can sometimes be easier than cold-starting a practice–if you choose a practice that is right for you. Here is how I did that.
Decide on Your Key Practice Characteristics
For me, location, longevity and loyalty of patients were the most important characteristics in a practice I would buy.
Practice Location
Location is a major factor when it comes to buying an existing practice, or starting cold, for that matter, because location drives visibility, patient volume, access and parking. I always envisioned myself buying a practice with high foot and vehicle traffic to help with advertising and easy accessibility.
I wanted my practice to be close to other retail stores, medical offices, restaurants and local shops. I loved the idea of my practice being well integrated within the town/community.
I believe that not only is my practice a healthcare office, but it is also a small business. Being a small business surrounded by other small businesses allows me to spread the word about the importance of routine vision exams while incorporating the “boutique” feel that an optical should have.
Practice Longevity
The longer the practice has been present within a community, the greater the framework you have to build on. Integration within the community creates a warmer atmosphere. My vision is to ensure patients feel comfortable and welcome in my practice, while trusting me with their visual and medical eyecare needs.
Patient Loyalty
Patient loyalty to an existing practice you buy is a direct representation of the quality of care patients were receiving. Retaining those patients should be the number one goal of buying into an existing practice with a loyal patient base.
What Kind of Patients Are These?
Every practice has its own kind of patients. So, when considering a practice to buy it’s important to find out who these particular patients are. Are these value seekers, focused primarily on a fast, low-cost experience, or are these people in search of personalized care, and open to purchasing high-end eyewear and saying yes to needed services that come with an out-of-pocket cost?
The existing patient base at the practice I purchased prioritizes quality of care and quality of products. They understand our passion and confidence about optometry and opticianry, which allows us to use our knowledge and expertise to educate them on their eye health and visual needs.
Does the Practice Pass Muster After Evaluation by Attorney & CPA?
Even if you like everything you hear and see about a practice, you need to do your due diligence, having outside help from an attorney and CPA, and maybe others.
These are the professionals you spend the most time communicating with during a practice purchase, so it is crucial you have a well-established relationship with them. I was keen on finding a team that gave prompt responses and that were quickly accessible by e-mail or phone. Below are some key points of the due diligence process:
- Last 2-3 years of tax statements and profit/loss statements
- Legal due diligence, which includes all local, state and federal requirements and regulations
- Assessing frame, lens and contact-lens inventory
- Assessing quality and value of all existing furniture and exam and lab equipment
- Reviewing and renegotiating (if need be) lease terms
- Understanding number of new patients/exams, history of exams/day
- Review insurances accepted – you should also research major companies and schools nearby and the insurances they offer their employees/students to see if you would benefit getting paneled on those insurances
- Current employees/agreements in place
Talk to multiple companies for each area of expertise, whether it be lawyers, accountants, billing/coding services, bookkeeping services, contractors, insurance agents or others. You will get different quotes and find different personalities. It is crucial you feel comfortable and confident with the team you will be working with throughout the sale and beyond.
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What About Equipment?
I decided to obtain all the equipment and assets the current owner gave me and chose to sell or replace them based on my needs. There were some pieces of equipment that were in good shape that I decided to hold onto, but there were other pieces that I felt needed to be updated.
Will the Previous Owner Stay on Board to Help with Transition?
The previous owner offered to stay on board to help with the transition period for as long as I needed, and I offered to go into the office a few times a week to “shadow” the owner before taking over. This allowed me to get familiar with how they were operating on a day-to-day basis and introduce myself to patients coming in.
We decided to send out their retirement letter alongside my transition letter, so patients would feel confident that their care would not be compromised.
What Support Staff, if Any Stays?
This was a smaller optical/optometry office owned by two opticians, where the optometrist was leasing out the exam lane within the practice.
I kept the only other optician on staff and resumed OD responsibilities in replacement of the previous OD. I went to meet the optician prior to the sale, and knew her work ethic, passion and knowledge of opticianry would only be an asset to the practice. I was very grateful she wanted to stay on board during the transition.
Shefali Patel, OD, is the owner of Darien Eye Care in Darien, Conn. To contact her: shefali.928@gmail.com
