PROFITTHEORY

Optometry practice transitions

Optometry practice transitions

Optometry practice buyers and lenders look at the split between exam, medical and optical revenue, optical inventory, payer mix and the doctor's role. Preparing these numbers early helps both buyers and sellers.

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Estimates only. Results vary. No guarantee of approval, rates or savings.

Profit Theory is not a lender. Providers make all funding decisions; approval is never guaranteed.

Key numbers

  • Revenue by exam, medical eye care and optical
  • Optical capture rate and inventory value
  • Vision plan vs. medical insurance mix
  • Doctor days and production per doctor

Inventory and equipment

Frames and lens inventory is often valued separately. Diagnostic equipment age affects both price and the buyer's future capital needs.

Run the numbers

Blue = you enterGreen = calculatedGray = assumptionAmber/red = check this
$

Net income + interest + depreciation/amortization + documented add-backs.

$
$
$
%
years
x

Debt service coverage (DSCR)

2.64x

Meets your 1.25x target.

Debt / EBITDA

2.17x

New annual payments

$77,639

Max new loan at 1.25x

$1,313,781

Each lender calculates cash flow and coverage its own way. Educational estimate, not a credit decision.

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Estimates only. Results vary. No guarantee of approval, rates or savings.

Estimates only. Results vary. No guarantee of approval, rates or savings.

Talk with a financing specialist

Common questions

How do I value an optometry practice?

We don't provide valuations; work with a qualified appraiser or broker.

Can I finance optical inventory?

Often as part of the acquisition loan. Lenders decide.

Do I need a broker?

Optional; an experienced attorney and CPA are recommended.