: Banks are often more willing to finance acquisitions because they can evaluate the practice’s actual financial track record rather than projections. Essential Due Diligence
: You bypass the "ramp-up" phase, securing income the moment you take over. buying an existing optometry practice
: A healthy practice typically sees net income representing 20% to 25% of gross revenue. : Banks are often more willing to finance
Buying an existing optometry practice, often called a "warm start," offers a streamlined path to ownership by providing immediate cash flow, an established patient base, and trained staff from day one. Unlike starting a practice from scratch (a "cold start"), which can require a minimum investment of $350,000 and months of negative cash flow, an acquisition allows you to inherit operational systems and community recognition. Core Advantages of a Warm Start Buying an existing optometry practice, often called a
Before signing a Letter of Intent (LOI) , you must perform "homework" to uncover potential risks and determine a fair price.
: Stable practices usually see 20–25% of their caseload come from new patients.
: Request three years of financial statements , including P&L statements, balance sheets, and tax returns.