Aspects of Practice Transition with Neil Pence, OD

Average Practice Life

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Starting stage

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Aspects of Prac-ce Transi-on Neil A. Pence, OD, FAAO Associate Dean Indiana University School of Optometry

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Indiana University School of Optometry Business Resource Center

Methods of Practice Transfer • When starting any business, you should have some idea as to an Exit Strategy • How will the business be assured a smooth transfer; a continued long life of operation • How can that transfer allow for a maximum Return on Investment (ROI)

Indiana University School of Optometry Business Resource Center

Indiana University School of Optometry Business Resource Center

Methods of Practice Transfer Example 1 – Worst Case Scenario • Works 5 days a week; 5 staff; no evenings or Saturdays • Spouse does volunteer work • 2 children: daughter in college, son in high school • Active, well respected in community • Estimated Practice Value $275,000

Methods of Practice Transfer Example 1 – Worst Case Scenario

• Dr. A - Midwest practice • Solo practitioner • Age 51

• Small town (6,500), county seat • Last year’s Gross = $462,000 Net = $139,000

Indiana University School of Optometry Business Resource Center

Indiana University School of Optometry Business Resource Center

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