The College of Optometrists

I have been offered the opportunity to purchase a partnership in an independant of four practices. Any feedback out there on how to assess the value of the partnership, and anywhere to go for professional advise?

1) there is no prof. advice, only consultants who will eat your money and give their opinion - often of poor quality. BUT IT is your opinion that counts - it is you that will be doing the work. So don't go down that route.

2) this is up to negotiation and what you think its worth.

3) Ask what price the other parteners are thinking about and work from there.

4) Ask about turnover, stock and profit. How they work our your share of the profit. Ask about funding the purchase from your share of the profits. THen you your own research - phone the council - ask about town planning, look at the competition - if the town is wide open - then believe me - you won't be the only one to notice that : so check where else the competition could come in.

5) Be difficult and ask and worry and get it right for you. Don't forget many partenerships founder on emotional issues - you have to get on with your parteners. So it is not all money - will you feel equal to the other parteners emotionally. - cos you need to.

6) Don't sign anything without ensuring there is a safeguard for you against other parteners debts and miss deeds. Also make sure you get a 'get out quick' clause - you may need it unexpectedly.

7) expect the whole negotiation to take many months - and enjoy it. They will bend your way if they want you - so don't be nice - be business minded.

Also be careful - often candor and evilness are in linear relationship. Ask yourself - why do they want me in? What is in it for them?

8)if they work to a formula for the value of your share - ask how they justify it. Don't forget - yep it maybe an offer of a life time - but it is only a job, and also one day you will want to leave.

9)as far as I know - opticians practices are a slow market and perhaps are going down in value.

I havr just completed a partner agreement. The value of a practice is dependable where it is - Have a look at MLR website this will give you some idea. Because there are a lot of people who want to come home to Belfast, optical businesses are worth a lot more here eg a practice with TO of around 150K could well sell for excess of 200K. The range of valuations for my practice was 70K!!! In the end I managed to get it for 5K more than the lowest. No-one will tell you a definite figure - Come to an agreement with current owners - I wouldn't let it drag out though - make a decision, get you head down and work like a champion - the competetion isn't getting any easier and your time is running out! Big difference if you already work there - do you?

If you are buying a practice then the value of the business should be assesed on a percentage of the turnover + stock at valuation. the current percentage is between 30 to 40 percent per pound in turnover. so a 200k turnover practice should be worth no more than £80k + stock, and look at the age and condition of stocks as even a 10 yr old frame will become valuable. As far as partnerships are concerned, it is a marriage of a sort and as such should be negotiated with as much ambience as possible, if it is to be successful. Clear directives have to be set as stepping on each others toes will bring oain later. Regular scheduled meetings should be in place to discuss matters. One should work in a parnership with enthusiasm and earn respect, rather than expect it immediately.

I have taken on a partner about 2 years ago and i now have 2 of me running the businesses. And we now run the business and not the other way around.

Goodluck

ps If you are going into business then make sure that the practice is going to be part of The UK Independants Buying Group. E-Mail ukindeoendants@aol.com

Sorry i couldn't resist it