Decoding Your Optometry Future: Key Questions to Ask When Acquiring a Practice

Thinking about launching your own optometry clinic? After finding the ideal property, the next critical step is securing the necessary finances. Optometrists often grapple with the challenging decision of selecting the right financing option and banker for a lasting professional relationship when establishing a clinic. To assist in this crucial search, we’ve assembled a set of questions to guide you in finding the perfect banker for your optometry clinic and questions to ask whey buying a practice.

Questions to Find the Right Banker
● Are you or the bank familiar with the healthcare sector, particularly the optometry industry?
● How involved can you get with the lending decisions and recommendations?
● Will the financial institution provide sufficient working capital as I transition into ownership of the optometry clinic?
● Are the repayment schedules flexible?
● What should I know about prepayment penalties?
● Will the bank support my optometry clinic’s future goals, such as expanding operations, acquiring new equipment, or relocating?
● Can the bank help me in purchasing the property for the clinic?
● Can you facilitate introductions to other industry experts with experience in the optometry industry, including consultants, contractors, insurance providers, attorneys, and CPAs?
● What rates does the bank offer? Are they floating or fixed? Can the bank provide better rates for optometry businesses than general businesses?
● What is the bank’s fee structure?

Additionally, to make the right financial decision, you must also understand the loan requirements, including the payment terms, interest, down payment, and operating capital in the bank.

Questions to Evaluate the Success of Your Optometry Clinic
Once you have found the right banker, ask these questions to evaluate the success of your optometry clinic:
● In what way does the practice’s overhead compare to the industry standards?
● How much available cash flow can be allocated towards existing personal debt, living expenses, investment goals, and debt payments?
● What are the growth opportunities if I increase the number of patients or conduct additional in-house procedures?
● How much does the Fee of Service, PPO, Vision Plans/Medicaid contribute to the growth of the clinic? Will I be able to obtain long-term success with the same planning and fee schedule?
● Is the location of the clinic favorable in terms of competition and demographics?
● What should I know about the transition plan?
● Is the optometry clinic’s growth organic or result from over-treating and marketing strategies that do not attract recall patients?
● What is the equipment’s current condition? Does it require repair, replacement, or upgrade?

The financial aspect of acquiring an optometry clinic plays a pivotal role in ensuring your sustained success. Beyond offering guidance, your banker aims to foster a robust and enduring relationship by comprehending your industry, professional background, financial profile, credit history, and vision. Pose the mentioned questions to cultivate an interactive and consultative partnership with your banker, ultimately saving both time and money as you navigate the path to establish a successful optometry clinic.

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