What PE looks for when acquiring optometry practices

Yaopeng Zhou
Jul 15
2 min read

When Private Equity (PE) firms buy an optometry practice, they’re looking for many of the same fundamentals as in dental or other healthcare roll-ups — but with a specific focus on the recurring revenue model, optical retail upside, and platform scalability.

Here’s exactly what PE looks for when acquiring optometry practices or groups:

Top 10 Things PE Firms Look For in Optometry Acquisitions

1. Strong Financial Performance (Especially Optical Revenue)

EBITDA-driven model: PE is interested in practices with $250K–$1M+ EBITDA
Solid revenue from:
- Eye exams (insurance or private pay)
- High-margin optical sales (glasses, lenses, upgrades)
- Contact lens subscriptions
- Ideal: $1.5M–$3M annual collections, 15–25% EBITDA margins

2. High Recall Compliance and Patient Retention

Recurring exams = stable, predictable revenue
Well-managed recall process (or potential to implement one)
Low attrition and strong loyalty = valuable lifetime patient value
PE loves practices that function like annuity businesses

3. Strong Clinical Team & Transition Plan

Owner willing to stay on 1–3 years post-acquisition (or assist with transition)
Associate ODs in place (reduces reliance on a single doctor)
Solid support staff and optical sales team

4. Efficient, Scalable Operations

Use of cloud-based or modern PM/EHR (e.g., RevolutionEHR, Compulink)
Efficient billing and scheduling
High optical capture rates (>60%) with inventory under control

5. Location & Facility Quality

Attractive, well-located office(s)
3–6+ exam lanes, modern dispensary
High-traffic retail area or medical plaza = big plus
Real estate included or long-term lease in place

6. Optical Retail Performance

High-margin sales: frames, lenses, upgrades
Capture rate + avg sale per patient are key
Potential to increase retail sales via branding, merchandising, training
Optical = big driver of EBITDA and PE loves tangible upsell revenue

7. Growth Potential / Underoptimized Levers

Weak digital marketing / online presence
Low recall effectiveness
No subscription/contact lens auto-ship
No dry eye clinic or myopia control services
Opportunity to expand hours, locations, or services

8. Clean Books, Legal & Compliance

Accurate financials with clear adjustments
HIPAA compliance, proper credentialing, no ongoing litigation
Transparent payroll, vendor contracts, and payer mix

9. Platform Potential (Roll-Up Fit)

Fits geographically or demographically into their DSO/OSO model
Compatible with their operations model (centralized billing, HR, etc.)
Referral potential (e.g., retina, ophthalmology integration)

10. Flexible Deal Terms

PE prefers:
- Earnouts tied to future performance
- Partial equity rollover in the larger platform
- Owner commitment post-close to protect continuity

What Kind of Multiples Are PE Paying in Optometry?

Type	Typical Multiple (EBITDA)
Single location	3–5x
Multi-location (3–5 offices)	5–7x
Platform acquisition or specialty (e.g., vision therapy)	7–10x

Summary: What PE Values Most

Category	Why It Matters
Strong EBITDA + retail margins	Drives returns
Scalable operations	Easier to roll up
Recurring revenue	Predictable growth
Owner retention	Protects transition
Growth levers	Unlocks post-acquisition value