Former optometry practice owner, now business broker, Philip Fent has cautioned optometrists selling their practice against refurbishing or investing in new equipment before they put their practice on the market.
“I am often asked how to maximise the sale price,” said Mr Fent who owns Optometrist Business Brokers. “The answer is not to renovate or invest in new equipment because the cost of doing so will not be returned at sale time.
“Purchasers of optometry practices look at past sales performance – especially profits. They often do not value fixtures, fittings or sometimes even equipment as separate items – they see it as part of the business.”
Mr Fent said a small investment of around AU$10,000 in new carpet and fresh paint to make a practice presentable may be far more beneficial than spending $100,000 on a complete fit-out.
“You can absorb the $10,000 in the sale price but a purchaser will not pay you an extra $100K when they buy, and you can’t absorb that. Similarly when it comes to equipment, if you buy a new OCT, you won’t get anywhere near the full purchase price back – you may not get anything at all.”
“Many optometrists don’t realise this and they waste a lot of equipment within a short time before selling, then they become very disappointed with the outcome. If you are thinking of selling soon, it’s probably best to get an appraisal of what price you can expect before you spend any money on a refit or new equipment,” he concluded.