BMO and ROI Team Up to Guide Practice Buyers and Sellers
If you have not been through a practice sale, the process may be unclear and even intimidating. Big Five bank BMO and health care practice brokers and appraisers ROI Corporation have teamed up for a series of dinner meetings in Ontario to help prospective practice buyers and sellers understand the intricacies of the process. The first of these meetings was held November 7 in Kitchener, Ontario.
ROI representative, Lance Edwards, a former practice owner from Haliburton Ontario, launched the session by sharing the process he went through to market and sell his practice in collaboration with ROI. He was so impressed with the company’s process that, following the close of the sale, he joined the firm as eye care business development manager and now focuses on helping prospective buyers and sellers.
Alexis Sweetnam of ROI demystified the selling process by guiding attendees step-wise through the selling/buying process while underlining the value that a professional brokerage brings to the table.
Additionally, attendees were able to view a comprehensive 96-page appraisal document. Price for a practice appraisal is about $5,000 and $1,500 for a “refresh” if needed 12-18 months later. According to Sweetnam, while Optometry is lagging behind Dentistry in terms of utilizing brokerage services, there is a growing trend and acceptance in optometry that transactions require a more comprehensive professional approach using an experienced health care brokerage service as well as qualified accounting and specialized banking experts.
BMO Director, Business Development Healthcare, Christopher Crofoot and Relationship Manager, Brad Altenhoff outlined the bank’s perspective on financing the practice purchase, shared financials of a “typical” solo optometric practice, and explained what the bank looks for in the financial statements of a practice in order to approve a loan and service the debt load.
Both ROI and BMO stressed the importance of lining up professional advisers well in advance, and urged participants to reach out at a very early stage in their considerations. The K-W webinar was held November 7. Upcoming webinars will be held as follows:
• East Toronto: Wed. Nov. 14 @ Toronto Delta East Hotel
• Mississauga: Wed. Nov. 21 @ Mississauga ROI office Streetsville
Meetings are from 6 PM to 8:30 PM. Light fare is served
If you are interested in attending, RSVP to: firstname.lastname@example.org or
call (905) 278-4145 Ext. 226