It is time to plan for your future

Sponsored content (Provision)

By Provision

Over the past year, independent practice owners had been forced to shift their focus to damage control as many had to temporarily close, navigate daily government updates about practice restrictions, understand and apply for relevant government stimulus available to keep their business viable, as well as adapt to a range of new and fluid health measures to ensure the safety of their staff and patients.

It came as little surprise that during the height of the pandemic the focus for optometry practice owners has shifted to carefully managing their finances to ensure their practice could weather the storm.

Revisiting Business Plans

The pandemic has taken its toll on practice owners, which has prompted them to rethink their business plans. A year on, it is time to revisit those plans.

Whether it is about reevaluating an existing plan, or creating one from scratch, the key to achieving your ideal financial goals – to ultimately ensure a smooth exit into retirement (when the time comes) whilst your practice remains independent and your patients in good clinical hands – all comes down to careful planning and seeking the right advice.

Succession planning options

When discussing succession planning with independent practice owners it is recommended that a well executed 10 to 15 year plan will provide you with the best chance of success.

Depending on where you are in your ownership journey, it is important to have a clear understanding of the options in front of you and how to best achieve them.

There are four main succession options available to practice owners:

• selling outright,
• a partnership or equity buy-in arrangement,
• retaining the practice and profit by employing an optometrist and finally, when all options are exhausted,
• closing the practice.

Transitioning out of 100% practice ownership and into a partnership or shareholder arrangement, is one great option as it facilitates a flexible approach for both parties. Over the past year there has been a spike in prospective practice owners interested in this option as it provides a more financially viable entry to ownership along with the added benefit of mentoring through the journey.

For those looking for an immediate release of the responsibilities of practice ownership, the outright sale of a practice could be an ideal option. Selling a practice requires careful planning and guidance.

Independent optometry alive and well

In 2020 we saw both buyers and sellers retreat, however, the good news for those looking at their succession plan is that not only is independent optometry thriving along with the value of practices, it is also well placed to continue to do so for the foreseeable future as patients have shifted back to seeing their local independent optometrist.

The growth in independent optometry is also reflected in a growing pool of prospective purchasers. Since the beginning of the year enquiries around member partnership opportunities and practice sales from independent purchasers have been extremely encouraging, and in some areas, we are seeing demand outweigh supply. The future looks bright for independent optometry.

 

Where to start

An ideal place for practice owners to start is to gain an understanding of the current value of their business.

At ProVision we assist members by providing them with an estimated range of values for their business, based on our expert understanding of the current market. Understanding the value of your practice will assist you in preparing your timeline and areas to work on, in order to maximise your exit value.

If you, as a practice owner, are considering your plans for the future and have questions about the options available to you, contact Mark Corduff at ProVision for a confidential discussion to look at your options. Request here