Stock photo of a close-up human eye

Optometric Practice TR604

Map image of East Central Kansas
East Central Kansas
Status: Active

This professional optometric family practice operates in two Eastern Kansas locations, and has been incorporated as a limited liability partnership by the two owners. The Primary Eye Care practice has a long history of success and with over 30 years of experience the eye doctors are able to offer a comprehensive service with the latest eye health care and treatments. The owners both wish to retire in the near future and one of the partners will remain in place for the next 1 to 2 years to ensure a successful transition. Vision care services include; acute care, chronic care and spectacle and contact lens dispensary. Comprehensive eye examinations for all ages include screening for common eye conditions like; glaucoma, macular degeneration, cataracts, and retinal detachments. Clients are provided with an accurate diagnosis and evaluation of their eyes to prevent any ocular diseases. Systemic conditions such as high blood pressure, diabetes, multiple sclerosis, brain tumors and thyroid problems as well as for less common conditions like epiretinal membranes are also screened during eye exams. Specific services such as eyewear designing and dispensing, contact lens fitting and follow-up, and learning-related vision problems are professionally and knowledgeably provided by the partners and their staff. Surgical options, visual rehabilitation, vision correction and/or improvement, including Laser refractive surgery (LASIK) consultations are offered by the practice. The practice is well respected in the two Kansas communities it serves as evidenced by the high return rate of its patient clientele (85%+) and has an excellent reputation with local physicians, hospitals, schools and nurses in the area as demonstrated by the constant level of referrals that they receive. Over the past 3 years the practice has had over 4,000 patients on their books, roughly 1,350 active clients per year, of which about 15% per year are new clients. Besides the two doctors, the practice currently employs 3 full-time optometric technicians / assistants and 2 part-time office staff members. The sale would include all of the assets, equipment, supplies and a well-established patient list. The practice continues to keep abreast of technological change and since 2010 has been using EHR, email and text messaging and Facebook to keep the clients and the public informed of the business activities and appointments. The real estate and facilities are owned by the owners via a separate legal entity who would prefer that these assets transfer with the business via a purchase, lease option or lease-to-purchase arrangement. The main 1,700 square foot office has 2 fully equipped lanes, a receptionist / waiting area, a lab room, two testing rooms (one with Optomap retinal photography and one with Humphrey Visual Fields Analyzer and NCT Tonometer), 2 restrooms, and a dispensary. The secondary 750 square foot satellite location has a waiting area, an examination lane, front office / dispensary, testing room with doctor’s desk and a restroom. As the doctors near retirement and have enjoyed fairly full schedules / bookings they have not had to actively promote the business and yet have still generated stable to slight growth over the past 6 years, i.e. compound annual growth rate (CAGR) of about 0.8% achieved. Currently the practice delivers approximately $600K in gross revenues (2013). Gross margins are around 75% and Net profit / income to the business is about $75K, representing a profit margin of >12.5%, better than industry averages of 8.5%. Annual discretionary cash flow earnings to a single new owner, i.e. adjusted EBITDA, is estimated to be $200K+ (before any new owner compensation / remuneration), sufficient for this new outright owner to service any debt financing. The estimated value range from operations of the entire practice is between $240K and $450K (excluding cash, receivables, inventory, liabilities and facilities).

Optometry TR604 Historical
2013
Base
2014
Forecast
2015
Forecast
2016
Forecast
2017
Forecast
2018
Revenue/Sales
% Increase
603,611
3.9
615,683
2.0
627,997
2.0
640,557
2.0
653,368
2.0
666,435
2.0
Gross Profit
GP Margin (%)
452,673
75.0
455,548
74.0
465,287
74.1
475,233
74.2
485,391
74.3
495,765
74.4
Net Income (EBIT)
NI Margin (%)
91,405
15.1
133,442
21.7
153,518
24.4
157,228
24.5
161,026
24.6
164,913
24.7
Adjusted EBITDA*
EBITDA Margin (%)
179,297
29.7
223,970
36.4
246,762
39.3
253,270
39.5
259,949
39.8
266,804
40.0

* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excludes Owners compensation)