Sponsored Content By Bob Schultz CEO, Vision One Credit Union July 21, 2021 Many ODs, practice owners and first-time buyers are unfamiliar with the analysis required to determine practice cash flow adequacy. This can impact buying, selling and operating decisions. But what if cash flow adequacy can be simplified to one practice metric? Vision One Credit Union is the only financial … Read More
Net cash flow is a barometer by which the health of the practice is measured. It is also a primary component of a practice’s value. As cash flow increases, the practice value increases. Here are some of the best ways to boost your practice’s cash flow.
Before we can look at what happens in a bad deal, we must first understand the three central components of a good deal: Both the buyer and seller agree the price is fair, the terms are fair to both sides, the buyer is able to pay the price, and there are no hidden time bombs in the practice. If any of these components break down, then the deal devolves into a bad deal, and will eventually fall apart.
When graduating optometry school, retiring from practice seems a lifetime away. But there are steps you need to take in each phase of your career, including at the beginning, to eventually be able to retire without financial worries.
As you build your practice, there comes a point when you should focus on building your own wealth, or retirement savings. Follow these guidelines to set goals for a more secure future.
Practice ownership should be viewed as part of a career path with distinct entry points, a wealth-building phase and an exit strategy. Here’s how to make that last phase—the exit—a success.
When buying a practice, like buying a house, you are investing in something of value and building the value of that investment. Here are a few key points to keep in mind when creating your plan, as well as some disconnects between what a borrowing optometrist thinks, and what a lender that understands optometry knows.
When seeking financing for a second practice acquisition, asking these four key questions can help you to borrow well–and become profitable sooner.
Most doctors are surprised at the initial low return of a second practice acquisition. But you need to look at the entire picture, not just the initial return. Here are six tough questions to ask yourself to determine: Do I buy? Or walk away?