Optometry is one of the most bankable healthcare specialties: predictable recall-driven revenue, combined medical and retail (optical) income streams, and steady demand from an aging population wearing corrective lenses. Private equity has entered the sector aggressively through MyEyeDr, Eyecare Services Partners, and Target Optical platforms.

3-8xEBITDA multiple

65%SBA financed

$400K-$5MTransaction range

90-120dAvg. close

Benchmark reference

EBITDA margin (target)20-30%

Staff expense %22-28%

Optical (spectacle) %35-50% of revenue

Contact lens %15-25% of revenue

Medical exam %20-35% of revenue

Frame & lens margin55-70%

Revenue per OD$400-700K

DSCR minimum1.25x

Practice Overview & Market Context

Overview

Optometry is a uniquely hybrid business: it combines a medical professional services practice (comprehensive eye exams, medical management of glaucoma, dry eye, retinal conditions) with a retail optical dispensary (frames, lenses, contact lenses). This dual revenue model -- with the optical retail generating 50-70% of total gross revenue -- creates attractive economics but also means valuation is part healthcare practice, part retail business.

MyEyeDr (Goldman Sachs-backed), Eyecare Services Partners, and Target Optical have been acquiring independent optometry practices at scale. The PE-backed model typically separates the professional entity (OD-owned PLLC, required in most states) from the optical retail business (owned by the platform), then connects them via an MSA. This structure allows PE ownership of the optical component while maintaining OD ownership of the clinical entity in CPOM-compliant states.

Value accelerators

Strong optical sales -- frame and lens revenue with 60%+ gross margins boosts overall EBITDA disproportionately

Medical optometry revenue -- glaucoma management, dry eye treatment, myopia control, pre/post-surgical co-management adds high-value recurring revenue

Contact lens business -- annual supply purchases and AutoShip create recurring, low-touch revenue

Multiple ODs on staff -- reduces owner-dependency; 2+ ODs increases scalability and reduces buyer key-person risk

In-house lab -- on-site lens surfacing increases margin and reduces turnaround time

Vision insurance participation -- VSP, EyeMed, Davis Vision -- broad panel participation drives consistent patient volume

Value discounts

Single-OD dependency -- owner-OD doing all exams; corporate buyers apply significant key-person discount

Low optical capture rate -- if fewer than 50% of exam patients purchase eyewear in-office, the retail opportunity is underexploited

Aging frame inventory -- outdated frame lines, poor inventory management reduce optical margin and patient experience

Short lease -- optical retail investment requires 10+ year lease certainty; under 5 years is problematic

No medical optometry -- practices doing only refraction and contact lens fitting leave significant revenue on the table

👁

The optical retail vs. professional services split

In optometry valuations, buyers separately analyze the professional services component (exams billed to vision and medical insurance) and the optical retail component (frame and lens sales). Retail optical typically generates 55-70% gross margins on frames and 45-60% on lenses -- significantly above the professional services margin. A practice with a strong optical capture rate (70%+) and modern frame selection commands a premium multiple.

Optometry PracticeFinancing & Valuation

Practice Overview & Market Context

Optometry Practice
Financing & Valuation