Category

Retirement
When Valuing  Small Businesses When valuing  small businesses, including owner-operated optometry and medical practices, arguably the most important item is Seller Discretionary Earnings (SDE). It is defined as the Net Income as reported on a tax return + Interest Expense +Depreciation Expense + Amortization Expense + Owner’s Compensation + Owner Perks. Basically it is what...
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Recently, I read my partner John Scibal’s blog titled “Should I Buy My Building?”  It was an excellent piece where I found myself saying “preach it bro, preach it!” as I was reading it.  I was immediately reminded of something that I learned years ago that I don’t think I would have ever been able...
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Often times the sale of a practice boils down to financing. The good news is that, in my experience, for a practice with good cash flow and that is priced correctly, there are banks willing to finance 100% of the purchase. Unlike Loaning Money For A Car Or A House, There’s No Real Collateral Sometimes,...
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Ten Years Out – 6 Things You Can Do Now I recently appeared on a blog by Nate Bonilla-Warford about how to prepare for selling your practice. Practitioners often find themselves in a position where they are ready to retire but can’t find anyone interested in buying their practice. They end up closing their doors...
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In Part One I stated that optometry is a great profession, and it can pay your bills, but passive income is what allows you to become independently wealthy.  The trick is to have the discipline to take some portion of your take-home from optometry and invest it where the  money can grow passively. Of course,...
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Can You Afford It? How Much Is Enough? Are you thinking about retiring from Optometry? Can you afford it? How much is enough? Rather than give you a number on how much you need to retire, let’s just talk about some general financial facts about optometry, and retirement. I Prefer The Following Definition We hear...
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Can You Sell Your Small Practice? A lot of you OD boomers are ready to slow down. You’ve spent 30 years building up a nice practice and decide it’s time to sell. But if you’ve got a small practice, which I’m going to arbitrarily call $500K or less, you may be disappointed. It may be...
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Why It’s Hard To Sell A Corporate Practice As baby boomers get ready to slow down and retire, I have been getting an increasing number of requests from OD’s who have practiced in retail settings to appraise their practices and help them with their exit strategy. What I have come to realize is that the...
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How Should You Price It So you’re thinking about selling your practice. How should you price it? The higher the better, right? Well, not so fast. According to business broker Jim Stauder the value of most small businesses can usually be established in a pretty tight range (within about 10%). Setting a price too high...
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“Hey John, Can you give me a ballpark figure on how much my practice is worth?” This is one of the most common questions I get asked as an appraiser.  Like most things, there is no quick and easy answer. Appraisers Use Rule of Thumb While some appraisers like to use rules of thumb such as one...
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