Purchasing an optometry practice as either your first practice or as an expansion of your previous ownership comes with great financial responsibility along with the day to day operations of the practice. New York has one of the most competitive markets when it comes to the healthcare industry. Evaluating financial statements and planning strategically will help you avoid expensive errors. Following are 7 steps that can set you on the path to a successful purchase of an optometry practice.

• Create Specific Purchase Goals

Before you even look at what practices are for sale, create specific goals for the purchase. Your goals can focus on location, practice size, the patients you want to serve, the services you plan to offer, and the potential for future growth.

As you begin comparing an optometry practice for sale in New York, consider how each opportunity aligns with these goals. Evaluating multiple practices side by side can help you identify the best fit for your long-term vision.

• Financial Assessment of the Practice

Detailed financial statements, tax returns, and profit-and-loss reports from the past three years should be carefully reviewed. Be sure to examine revenue, operating expenses, insurance reimbursements, and patient retention rates. A thorough financial assessment is a crucial part of determining whether the practice is a sound investment.

• Investigate the Local Market

New York is full of possibilities but also has its share of regional competition. Research population growth, age groups, nearby competitors, and the need for eye care services. If you open a practice in a location where there is consistent demand for your services, your practice will be successful in the long run.

• Analyze Equipment and Technology

New technology and modern diagnostic equipment help improve care for your patients. Consider the current state of older equipment and technology such as Electronic Health Record (EHR) and office technology. When planning your budget, consider the cost of replacing older equipment, which is price of the equipment plus the cost one will incur when upgrading.

• Learn About the Laws and Regulations

Numerous laws and regulations on the state and national level govern the healthcare industry. Reach out to your legal and financial advisors to look over contracts, licenses, employee agreements, leases, and any liabilities. Performing proper diligence reduces the legal risks and makes the process of transitioning ownership more seamless.

• Evaluate Potential for Future Growth

It is important to look past the current performance of the practice you wish to buy. Be sure to evaluate the potential for the practice to grow in the future as a result of expanded services, enhanced marketing, longer office hours, or offering new specialty treatments.

• Build the Right Team of Professionals

Buying a practice is rarely a solo effort. Your team should professionals who understand health care transactions such as an attorney, an accountant, a lender, and a practice consultant. Their understand of the health care transactions will help you negotiate the terms and understand each transaction, therefore helping you avoid potential risks.

Conclusion

For any professional in eye care, buying an optometry practice represents a critical career milestone. Although an eye care practitioner may be enthused about the prospect of finding the right opportunity, the purchasing process requires significant planning and financial critical analysis. Lastly, it requires a great deal of diligence. Evaluating the practice’s financial status, the technology and the legal obligations, as well as the practice’s patients and potential for growth, may help the new owner avoid problems in the future. A prudent owner must also be patient and avoid the impulsive decision of purchasing the first practice that comes on the market. Having diligent legal and financial professionals advising on the purchase will assist the professional in making a purchase that is an excellent investment for the practice, the patients, and the owner’s business. The foundation that the new owner of the practice lays will be the cornerstone of a successful optometry practice for many years to come.

Frequently Asked Questions

• What should I check before buying an optometry practice?

The financial situation, patients, technology, legal obligations, lease agreements, and potential for growth.

• Is buying an existing optometry practice better than starting a new one?

Existing practices come with patients, staff, income, and a business.

• How important is location when purchasing an optometry practice?

Location impacts patient demand and future practice growth and income.

• Do I need expert consultants before buying a practice?

Definitely. Having the right legal, financial, and medical practice consultants helps the buyer identify concerns and complete the transaction correctly.

• What is the process time for buying an optometry practice?

The timeframe is very much dictated by the buyer’s ability to get financing, negotiations, legal reviews, and due diligence, however, the process typically takes several months from the first evaluation to the final signing.