Methods Used to Determine the Value of an Optometry Practice
Sunbelt Business Advisors
July 10, 2020
Methods used to determine the value of an Seller Resources
Submitted by Randy M. Krivo, Licensed Business Broker, CMSBB, MBA
As a practice sales specialist, the most common question I am asked by practice owners is: “What’s my practice worth?” Not too surprising, potential buyers most often ask: “How much should I pay for a practice?” So, how do buyer and sellers determine the value of a practice? There are 3 methods commonly used in determining the answer to these questions:
- % of Gross Receipts
- Combination of Assets and Net Earnings
- Multiple of Net Earnings (SDE)
As a practice sales specialist, the most common question I am asked by practice owners is: “What’s my practice worth?” Not too surprising, potential buyers most often ask: “How much should I pay for a practice?” So, how do buyer and sellers determine the value of a practice? There are 3 methods commonly used in determining the answer to these questions
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