The relationship between you as a practice owner and your key contact at your major lens supplier probably runs deep. After all, they are 100% on your side; it’s a symbiotic relationship and the fates of your two businesses are intertwined. Your success is their success.
Except this is not actually the case towards the later stages of your ownership journey.
When it comes to exit planning and the sale of your practice, the objectives between you and your lens supplier quickly diverge:
- You want to achieve the best possible price and deal terms for what often amounts to a lifetime’s work.
- Your lens supplier wants to ensure that your business transfers to a party who will continue to buy their product.
This is why many are increasingly offering exit planning services and assistance (such as funding) in an effort to steer you towards particular courses of action and certain buyers under the guise of doing you a favour and “saving” you money on broker’s fees.
The problem is that if you don’t have the benefit of sufficient competition from buyers from the whole market – your choices and negotiating leverage are severely diminished. So they may save you paying a brokers fee – but clearly this is something of false economy if you also end up missing out on the best price and deal terms for your practice – for example the opportunity to sell your practice for a significant premium to a strategic buyer.
To put this in context, Myers La Roche have recently become belatedly involved in 2 separate deals where the owners were close to agreeing a price after exclusively talking to one party. An uplift of £90,000 in the deal agreed was achieved in the first instance and c£150,000 in the second. Our fee was a small fraction of the increased value achieved and clearly the owners had no qualms in paying it, knowing the very significant benefit they had gained.
CONCLUSIONS
Predicting the future is a dangerous game
As business owners, we have to keep making decisions. Business is not an exact science. There are numerous variables and so many of them (the broader economic situation, government policy etc.) are outside of our control. As Covid-19 demonstrated, nothing is guaranteed and even with the best plans in the world, we can quickly be blown off course. But we can certainly improve the success of our decision making by getting informed and making more educated decisions – and thinking carefully about whom we take advice from.
After every winter comes spring, then summer
There is therefore a final [6th] Megatrend – a bonus megatrend to hold on to during these taxing times:
If you'd like to know more about how Myers La Roche's friendly team can help you along your Optical Business Owner Journey, then please get in touch by phone or email today
More insights for you
Take a read below for further industry insights written by our Myers La Roche team:
Optometry Practice Valuation
An optical business valuation is the process of determining the fair market value of your practice and there are many reasons why a valuation may be necessary. As a meticulous analysis of the various factors that contribute to your practice's overall worth, an optical practice valuation is best conducted by specialists rather than a general accountant.
How do I sell my Optical Practice?
How and when to sell your optical practice is one of the biggest decisions you will ever make and, with the Optical industry undergoing a period of consolidation, most independent practice owners will be approached by a potential buyer at some point. In our comprehensive guide, Dom Watson of Myers La Roche profiles the types of buyer you may meet and strategies to help you exit your business on your own terms
Keeping Your Optical Business in Focus: Why Regular Valuations Are Essential
You know the importance of regular eye examinations for your patients, but have you considered a recall regime for your own business? You already know how a Myers La Roche business valuation can bring clarity to your operation - keeping that valuation up to date is highly beneficial for the long-term health of your optical practice.
Case Study: The benefits of exit planning to achieve an optimised sale within the optical sector
Following a structured exit plan designed via our Exit 360 PathfinderTM service we have recently completed on the sale of an optical practice in West Yorkshire.
Optical Practice Valuation Guide: Expert Tips and Insights
Having provided specialist optical practice valuations for over two decades, the following guide is designed to provide answers to the questions the Myers La Roche team are most frequently asked.
The 5 megatrends set to shape the future of the independent optics and how to harness them in your practice
Megatrends are forces that are reshaping the optical business landscape and the future prospects of independent practice owners in significant ways.
Megatrend One: Significant Inflation in practice values
The transfer value of strong, profitable practices is set to rocket over the long-term.
Megatrend Two: "Islandification" and Trading Location Evolution
Trading conditions and commercial terms for leases on high streets will continue to evolve, bringing both threats and opportunities to optical businesses.
Megatrend Three: Increasingly differentiated operating models in the independent sector
Privatisation & Shared Care will continue to shake up the standard operating model for independents.
Megatrend Four: Improving ease of ownership and operational experience
It will become easier and a more enjoyable experience to run your practice.
International Womens Day 2024
This International Women’s Day we want to encourage more female Optometrists and Opticians to take the first step towards owning their own practice
Optical Insights Salary Survey 2024
Recruitment and Retention of high-quality staff is the single biggest issue facing the optical industry in the UK and Ireland today. Our Salary Survey is a chance for your voice to be heard on this key issue
Thinking of Starting a Practice From Scratch
Starting your own business is one of the most rewarding and challenging things you can do, particularly in independent optics where you are likely to be the clinician as well as the business owner.
Giving something back whilst staying hydrated
Our unique relationship with AquAid has also given our company the opportunity to help those less fortunate than ourselves because with each purchase an automatic donation is made to the Africa Trust.
What's The Value of Your Commute?
Here at Myers La Roche, we talk daily about value. Not surprising, given that we value over 100 independent optical businesses every year.
How To Value a Specsavers Franchise
Specsavers optical franchises are valued via a yield-based valuation methodology.
How To Value a Boots Optical Practice
Boots Opticians franchises are primarily valued via a yield-based valuation methodology. Myers La Roche have significant experience in valuing all kinds of Optical Practices
How to Value a Vision Express Franchise Practice
Vision Express franchises are primarily valued via a yield-based/EBITDA valuation methodology.
Choose the right insurance policy for your optical practice
Choosing the cheapest insurance policy can potentially be both short-sighted and expensive
The Perils of Short Cuts, and Trying to Take the Easy Route
Indecision and procrastination on the timing for a business sale and retirement are common
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