Seller guide
Optometry Practice Valuation: What Your OD Practice Is Worth
Why "a percentage of collections" is only a starting point, and how two practices with the same collections can be worth very different amounts.
Short answer
Optometry practices are often discussed as a percentage of annual collections, with one CPA firm using roughly 0.65x as a shorthand in 2026. The price that holds up is based on what the practice earns after paying an optometrist a market salary, multiplied by a multiple that reflects risk. Optical sales, medical eye care and doctor continuity move that number most.
Collections are where the conversation starts
Ask most optometrists what their practice is worth and they will quote a percentage of collections. That habit is not wrong, just incomplete. Caro & Associates, a CPA firm that values optometry practices, describes "roughly 0.65 x annual collections" as "a starting point, not a price."
The reason is simple. Two practices can collect the same amount and keep very different amounts. Rent, staffing, optical cost of goods and how much the owner pays themselves all change the cash a buyer will actually receive.
A worked example: two $1 million practices
Carl Spear, OD, laid out the clearest example of this in Optometry Times. The figures are from 2018, so treat them as an illustration of the method rather than current prices:
| Practice A | Practice B | |
|---|---|---|
| Annual collections | $1,000,000 | $1,000,000 |
| EBITDA before owner pay | $240,000 | $350,000 |
| Minus a market OD salary | $150,000 | $150,000 |
| Earnings a buyer is paying for | $90,000 | $200,000 |
| Value at 4x to 7x | $360,000 to $630,000 | $800,000 to $1,400,000 |
Same collections, more than double the value. That gap is the whole argument for valuing on earnings.
What drives an optometry practice's value
Optical capture and margin
Eyewear and contact lenses are a large share of revenue in most practices. Buyers look at how many exam patients buy from you and at what margin. Caro recommends measuring clinic and optical margins separately, because a strong optical can hide a weak clinic and vice versa.
Medical eye care
Treating dry eye, glaucoma and other conditions under medical insurance adds visits that pay better and recur. A practice that has built this side is more attractive to every type of buyer.
Insurance mix
Heavy dependence on a single vision plan is a risk Caro flags directly. Vision plan reimbursement is often low, so the balance of vision plans, medical insurance and private pay matters.
Doctor continuity
If you see most patients yourself, buyers want to know how those patients transfer. An associate OD who stays is often the single best protection for value.
Equipment, lease and staff
Equipment age, a lease that can transfer, and long-tenured staff all show up in diligence and in the price.
Who buys optometry practices
- Associate and other optometrists, usually financed with a practice loan. The price has to work with what the practice's cash flow can repay.
- Regional optometry groups adding offices and doctors in nearby markets.
- Private equity-backed eye care platforms, usually for larger or multi-doctor practices. See private equity and optometry practices.
- Ophthalmology groups adding primary eye care and referral sources.
How to raise the number before you sell
- Separate clinic and optical financials so a buyer can see both clearly.
- Grow medical eye care visits and document them.
- Bring on or keep an associate OD to reduce dependence on you.
- Reduce reliance on any single vision plan where you can.
- Keep three years of clean financial statements and tax returns ready.
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Get a Free Practice ValuationCommon questions
What percentage of collections is an optometry practice worth?
Published shorthands vary widely; one 2018 article reported sale prices from 35% to 125% of a year's collections. Because the range is so wide, buyers and lenders price practices on earnings after a market OD salary instead.
Does optical revenue increase an optometry practice's value?
Usually yes, when it is profitable. Buyers look at optical capture rate and margin, ideally reported separately from the clinic.
Who usually buys an optometry practice?
Most single-doctor practices sell to an associate or another optometrist. Larger practices also draw regional groups and private equity-backed platforms.
Related reading
Sources
Figures are attributed to their source and date. Ranges are published estimates, not a valuation of any practice.