Current Market for Buying and Selling Optometry Practices
Consultant's Corner – Q&A with the Industry Experts
Question: What is the current state of the market for selling or buying an optometric practice?
"Prior to the recession it was really more of a Seller's market. The recession definitely affected optometry practice values negatively, which I think we're recovering from. Many doctors who wanted to retire around the time of the recession weren't able to because of the financial hit they took. Now they are in a better financial position and are taking their practices to market, which is coupled by the already large wave of baby boomer doctors who is retiring around this time and want to sell. In theory, one would anticipate a wave of selling activity and/or a glut of practices on the market but we just haven't seen it. I think we are getting back to a normal balance of buying and selling activity.
The real hit in the recession was to Buyer confidence. For 2-3 years the market was pervaded by fears. In the last 2 years I think some of those fears have eased. Also driving more buyer activity is historically low interest rates. This the cheapest money I think you'll find, and a lot of doctors are taking advantage of this - Christopher Majdi, Optometry Practice Broker & Appraiser"