There are several reasons an optometry practice owner like you might consider joining a private equity optometry group. You might be interested in expanding, or you might want assistance with running the practice. You might want to grow your professional network. Whatever the reasons, selling an optometric practice to a private equity firm has its advantages, but it also has drawbacks that are important to consider before committing to a sale. Here, we’ll look at how private equity works, the boons and downsides, and why converting to a franchise like Pearle Vision may be a better alternative.
A Good Look at Private Equity
Let’s start by getting a clear view of private equity. A private equity optometry practice is one that’s owned by one or more private investment groups. Private equity firms own a large chunk of businesses in the U.S. A May 2024 report on Forbes.com says that as of 2021, about 20% of U.S. businesses are managed by private equity firms.
Unlike publicly traded companies, private equity practices don’t have public shares. Instead, the firms that purchase them represent investors and investment groups such as the following:
- High net-worth individuals
- Financial institutions (banks, etc.)
- Endowment funds
- Pensions and retirement accounts
The private equity group works with a business’s management team to run the practice. Their goal is to create and implement strategies that will result in rapid growth and profit.
The Pros and Cons
Private equity optometry has some noteworthy benefits. You’ll get capital for expanding your operations, as well as for investing in new technology to improve and/or expand your services. You’ll get the opportunity to learn new business administration strategies. The rapid pace of growth that private equity firms aim for creates a fast-paced work environment for those who like active practice conditions.
However, there are noticeable challenges to handle with the private equity route. While rapidly growing a business can be stimulating, it can also wear you down and make maintaining a healthy work-life balance difficult. You’ll also have to give up a large amount of autonomy, as the firm’s management team will create a strategy for you to follow, which might have a heavier focus on financial metrics and not as much on patient care. Lastly, while a private equity practice may offer some potential for professional growth, there is a limit, due in part to the intense focus on revenue and investor interests.
An Alternative in Franchising
Private equity may be the answer for some optometry practice owners, but there’s an alternative for those who find the drawbacks outweigh the benefits. Purchasing a franchise like Pearle Vision offers perks of its own. To start, a franchisor like Pearle Vision allows franchisees a lot of autonomy in how they run their practice. While every franchise has brand standards and a business model, franchisees are free to make their own business decisions. Pearle Vision, for example, allows you to remain the licensed owner of your practice, as well as retain the right to set your own patient exam hours.
Franchising grants you access to franchisor support services such as marketing, advertising, technology services, and more. Pearle Vision also provides you with dedicated business consultants for advice and suggestions on how to handle the business side of your practice while you and your practicing optometrist focus on patient care and customer satisfaction.
Pearle Vision helps you establish a reliable supply chain for equipment, business supplies, and quality eyewear for your patients. Pearle Vision also goes the extra mile to help you with expansion, relocation, or first-time practice opening by providing real estate assistance to find the best location possible.
Private equity is a viable business strategy for some, offering direction and financial support. But it requires you to give up a large amount of control over your practice, can push you to work at an uncomfortable pace, and may also prioritize financial success over quality patient care. You have an alternative option in purchasing a franchise like Pearle Vision, where you can remain your own boss, own your own practice, and operate with a focus on quality patient care and customer service under a brand with a good reputation for both.
Get a Clear View of Success with Pearle Vision
We’re proud to offer you this alternative to selling your optometry practice through franchising with us. Submit a form today to learn more about franchising with Pearle Vision.
