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Sellers of Optometry Practices Can Be Confident of a Strong Market

Sellers of Optometry Practices Can Be Confident of a Strong Market

MINNEAPOLIS – “The American Academy of Ophthalmology declared 2020 to be the ‘Year of the Eye,’ and the American Optometric Association took it a step farther and declared it to be the ‘Year of the Eye Exam’,” said Sunbelt Business Advisors President Chris Jones. “We’re taking it another step farther yet and declaring this the Year of the Optometry Practice Sale.”

“We are pleased to say that, even in an economy disrupted by COVID-19, Sunbelt Business Advisors continues to be successful at matching the buyers and sellers of main street businesses, when many businesses are feeling uncertainty,” said Jones. “We are particularly fortunate to have Minnesota and Western Wisconsin’s leading seller of optometry practices, Broker Randy Krivo, on staff here at Sunbelt. He understands the unique ins and outs of the optometry industry and continues to match optometry buyers and sellers, even in these unprecedented times.”

“Buyer demand remains high for optometry practices,” said Krivo. “No one who owns an optometry practice should delay retirement or selling their practice because of the current economic environment.”

“Due to the essential nature of eye exams and vision correction services, this is a business market that is fairly immune to the effects of the COVID-19 pandemic, and banks that specialize in practice financing continue to lend aggressively,” said Krivo. “With private equity groups, corporate optometry, and individual buyers all very active in the market, practice owners have never had more options than they do now to tailor a deal that meets their desired exit plan.”

Optometry Industry Update – Eye on the Prize

February 8, 2021, VSP Ventures rolls a seven. The Rancho Cordova, CA company has acquired Family Eyecare Associates. FEA is made up of two offices in Reno and Sparks, NV. The company has been in the optometry space for over 45 years and offers comprehensive eyecare and optical services, from standard eye exams to refractive surgery management. Under VSP Venture’s rollup strategy, Family Eyecare Associates will not endure any turnover and will continue to operate as it did before the acquisition. This is not the first time VSP has rolled up optometry practices in Nevada, having also acquired EyeZone in 2019. Family Eyecare Associates has a strong reputation in its markets and is known for its passionate staff and cutting-edge technology in practice, both of which VSP plans to continue in the future.

Since August 2019, VSP Ventures has acquired optometry and other eyecare practices in over 24 locations, and their rollup strategy is continuing, with two new practices being acquired within the last month (February 1, 2021 and February 8, 2021). This strategy is relatively common in the optometry space, and private equity groups continue to see value in the combination and diversification of holding multiple practices across different geographies. Our experts believe this trend will persist moving forward, as private equity firms will pay higher-than-average multiples for practices they feel provide synergies for their business model.


If you’re contemplating a sale of your optometry practice or simply would like to understand your options, contact a Sunbelt Advisor today. We have closed multiple strategic and financial transactions in the optometry industry and have industry specialists ready to answer any of your questions.

1Seller’s Discretionary Earnings – Seller’s discretionary earnings is defined as net profit before taxes and any compensation to owner plus amortization, depreciation, interest, other non-cash expense and non-business-related expense and normally to one working owner. (Source: BV Market Data)

2Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) – EBITDA is Net Income with interest, taxes, depreciation, and amortization added back to it. EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. However, this is a non-GAAP measure that allows a greater amount of discretion as to what is (and is not) included in the calculation. This also means that companies often change the items included in their EBITDA calculation from one reporting period to the next. (Source: BV Market Data)