Selling an Ophthalmology Practice

One the first specialties to gain the interest of the investment community was Ophthalmology. Today more than 300 eye practices are part of just the top 10 private equity platforms, with many others part of groups that are focused on helping the physician owners of eye groups become more successful.

he healthcare industry has been the target of significant merger and acquisition activity over the last decade with private equity firms and large consolidators rolling up specialty practices into nationwide platforms. But perhaps the most sought after medical specialty for private equity in today’s market is ophthalmology groups practices.

The combination of strong revenue, high reimbursement rates, and integrated ancillary services makes ophthalmology groups an attractive target for investment. In the US, an aging population has led to powerful demand for ophthalmology procedures like cataract surgery, retina surgery, and glaucoma surgery. Thanks to technological advancements in surgical techniques and instrumentation, most ophthalmology procedures can be safely performed in a much more affordable outpatient setting which further improves profitability of the ophthalmology business.

Physicians, executives, nursing staff, and support teams all play pivotal roles in the success of these organizations and understanding how these elements contribute to overall value is essential for any physician-owner who is considering a sale of their ophthalmology practice.

The Market for Ophthalmology Practice Acquisitions

Investment, consolidations, and buyouts are reshaping every sector of healthcare, and ophthalmology continues to be part of this. Large regional and national platforms have evolved, and while investment in ophthalmology groups is not new, private equity’s interest in this specialty area continues. Private equity buyers are looking for specialty practices like ophthalmology because of their steady cash flow and their volume growth. We expect this interest to continue. There are now at least 15 private-equity and institutionally backed platforms actively pursuing ophthalmology group deals.

Benefits of Selling an Ophthalmology Practice

Physician owners of ophthalmology practices can realize many benefits from a sale to private equity or a partnership with a large MSO, consolidator, or hospital system. Naturally physicians focus on the immediate financial benefit that comes from the liquidity event at closing, but the operational advantages of consolidation are equally important to understand and consider.

Independent ophthalmology practices today face substantial challenges that can strain resources and limit growth. Finding the right partner and negotiating the best terms can provide solutions to many of these challenges. Through joining a larger platform, practices gain access to scale, capital, and specialized expertise that would be difficult or impossible to develop independently. Specifically, large private equity backed organizations or MSOs are better positioned to manage:

• Governance and Compliance
• Physician and Staff Recruitment
• Capital for Growth
• Revenue Cycle Management
• Payer Contracting
• Infrastructure and Support Services

For physicians, retaining clinical autonomy while offloading much of the work associated with running and growing a practice can be an appealing option.

How to Sell an Ophthalmology Practice: The PTA Process

Selling an ophthalmology practice represents one of the most significant financial and professional decisions a physician will make in their career. For most physicians this is a once-in-a-lifetime event. However, the buyers and private equity firms across the negotiating table complete multiple transactions each year and are supported by teams of investment bankers, attorneys, and analysts whose primary goal is to structure deals in their favor. Without an experienced advisor, physicians are at a serious disadvantage when it comes to negotiating the best valuation and deal structure for their ophthalmology practice.

Our industry leading team of career outpatient healthcare leaders has guided physician owners through more than 300 practice and surgery center transactions across multiple specialties, with deep expertise in ophthalmology specifically. This is actually the market that go us started in the industry some 25 years, as our founding partner came from the eye industry. We serve as trusted partners to navigate complex transitions and maximize value during organizational change. Whether you’re exploring your options, in active discussions with buyers, or ready to move forward with a transaction, we provide the guidance necessary to successfully navigate every phase of the transaction. Our process is risk-free and cost-free until closing, aligning our success with yours. Our process to help you sell your ophthalmology practice includes:

Our Recent Ophthalmology Practice Transactions

With over 300 transactions closed, Physician Transaction Advisors has the expertise to achieve the best outcome. Below are some recent ophthalmology client transactions:

• Berkshire Eye Physicians and Surgeons, LLC.
• Eye Surgery and Laser Center
• St. Vincent’s Eye Center
• Vista Eye Group