Planning the Three Stages of Optometric Practice
By Bob Schultz, President and CEO, Vision One Credit Union
Stage 3:Exiting Practice… Successfully
In the previous two articles in this series (click here for the first article and the second article), we described how practice ownership should be viewed as part of a career path with distinct entry points, a wealth building phase and an exit strategy. The career path should meet your goals of professional fulfillment, comfortable lifestyle and retirement, on your terms. In other words, make the practice work for you instead of you working for the practice. This article, the last in the series, focuses on exit strategies.
Finding a Win-Win Via an Alternate Exit Route
By Dan Runyan, OD
Having an exit strategy is important, as Dan Runyan tells ROB. He and his partner went to optometry school together and were in practice together for 40 years. But, Dr. Runyan wanted to retire sooner than his partner. So, they partnered with two younger optometrists to merge practices and create a new practice called the New Image Eye Center. Today, Runyan works for the practice one day a week and one Saturday a month as an employee doctor, while his former partner is still part of the practice.
It’s Not About the Gross: How PCO Determines the True Value of a Practice
By Janice Mignogna and Harry Kaplan, OD, FAAO
Fifteen to 20 years ago, practices usually sold for 100 percent of gross revenues. Things have changed drastically with the growth of managed care. Nationally, a minimum of 70 to 80 percent of all optometric patients are covered under a third party care system for their services and materials. In most metropolitan areas, the percentage of managed care swells to 90 to 95 percent and benefits are more the norm and expected.
The Specifics: How to Do a Practice Valuation
By Janice Mignogna
There is no magic formula for arriving at an equitable sale price, however, there are two widely used formulas for determining the value of a practice. Often, the two different approaches are averaged together and used as a starting point to begin negotiations.
Making Staff Matter:How Office Design Plays a Role
By Amir Khoshnevis, OD
Our staff meeting room is truly one of the nicest rooms in the building. This location is 5,600 square feet and our conference is 315 square feet of that. Our investment for table, chairs, cabinet, AV, and everything needed to make this room functional, was around $5,000, and I kept costs low because I used vendor programs for the AV and refinished/refurbished the huge cabinet that had been scheduled to be demolished because the last tenant left it in the building. Obviously, we have ongoing costs associated with the extra space, but the return on our investment is excellent. We’re reminded of this every time we gather.
Of Mice and Missions
By Carole Burns, OD
A recent MBA symposium was devoted to delivering world class ?service quality. Our keynote speaker was from the Disney Institute, and he told wonderful stories, some funny, some heart-warming, and some even heart-breaking about how Disney “makes magical moments” at their theme parks.
Perhaps the most memorable story was one about a custodian who felt empowered enough to put down his broom and ask a family posing, “Would ?you like me to snap the photo for you, so Mom can get in the picture?”
