Ophthalmology Business

SEPT 2013

Ophthalmology Business is focused on business topics relevant to the entrepreneurial ophthalmologist. It offers editorial, opinion, and practical tips for physicians running an ophthalmic practice. It is a companion publication of EyeWorld.

Issue link: http://digital.ophthalmologybusiness.org/i/174774

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Page 23 of 26

Issues in selling a subspecialty practice by Brad Ruden, MBA S elling an ophthalmology practice can be a daunting task. It can be even more difficult if the practice has a dominant subspecialty focus. The obvious practices with a subspecialty focus are cornea, glaucoma, plastics, retina, or refractive surgery. However, a cataract practice that is wholly or substantially dependent on OD referrals can also be considered a subspecialty practice. 24 Market comps The first hurdle is to identify a value for the practice. The major business transaction databases, such as Pratt's Stats, IBA Market Database, or BizComps, are inadequate in that they have very few ophthalmology practice comps. At this time, the best database for practice comps in ophthalmology is the Goodwill Registry. While the Goodwill Registry provides some terrific market comp data, the downside is that it doesn't break down its transactions by ophthalmic specialty, except for vitreo- Ophthalmology Business eZine • September 2013 retinal. Because of this, one doesn't know if the practices identified are general ophthalmology or are oriented to a particular subspecialty. Frankly, over my 23 years consulting in ophthalmology, I have yet to come across a reliable database for subspecialty ophthalmology practice sales. While the value of tangible assets as well as office and medical supplies can typically be identified without market comps, the issue is how to identify goodwill value. Without proper market comps as a

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