The book on how one optometrist got to the closing table for $750 or less... twice!

DOTS owning your own private practice seem like a dream that's out of reach? Considering the expense and risk of purchasing a practice, it's not surprising that a large percentage of new grads opt for commercial practice or employment.

Yet at age 31,1 own two private practices with my wife, Dr. Annamarie Milburn. She is 30. We have one practice in Medina, Ohio and another in Wooster, Ohio. Let me assure you, if we can do it - you can, too!

At times, it was a struggle to get our businesses running as smoothly as they should. Everyday presents a new challenge, but the benefits of owning our practices are huge. The tax breaks, the freedom to work and vacation when we like, the equity that we will build in the businesses and the real estate, the ability to practice as we choose - these are just a few of the benefits.

In this article, I'll share how we made it to the closing table on a shoestring budget - twice in the first five years of our careers. We relied on creativity, determination, and a little bit of luck to structure the deals, which in no way stressed our personal finances. We did not incur costs above and beyond $750 until after we signed on the dotted line, and those costs were immediately repaid by our new practice. Hopefully, this story will spark ideas, inspire grads and motivate colleagues to find and purchase the practice of their dreams.

Soon after graduation, at age 26,1 stumbled on to our first practice opportunity - a senior doc who was ready to retire and willing to finance. I located this practice through a classified ad placed with the Ohio Optometric Association. The seller was semi-retired and working only oneand-a-half days per week. The practice was barely making any money, but the location was outstanding.

The practice was a small, but modern, well-equipped office located in an area with healthy growth. Annamarie and I decided to go against conventional wisdom. We bought a dying practice, but we did so in a calculated fashion. The price was right and the financing was in place. It was a classic diamond in the rough scenario.

The new practice was on life-support, so we had no choice but to moonlight for another doctor while we attempted to turn things around. The new practice grew steadily and doubled in size after about four years. Still, the practice could not support two doctors full-time. We became impatient having to work part-time outside our practice. We decided last year that the next logical evolution for our practice was a satellite office.

We looked for a strong, healthy practice. With four years of business experience, we felt confident that we could handle a busier office this time around, but the search proved challenging. It's easy to find a dying practice. It's much tougher to find a doctor who is willing to part with a healthy, profitable private practice.

We searched for about six months and had no luck with classified ads, placement services or practice brokers. Our criteria were too specific: a busy, modern private practice within 45 minutes of our first location. It seemed we might have to wait years.

Finally, I tried a Hail Mary pass. During the first week of December 2004,1 mailed a letter to every optometrist in Northeast Ohio asking if they might be ready to sell. Out of more than 200 inquiries, I received 13 replies. Three were contenders, but only one deserved serious attention. We signed a contract on February 15th, and took control of our second practice on April 1st, 2005.

If you think there are no practices for sale in your area, then I strongly recommend a mailing. State your intentions in a letter to every doctor within 30 miles of your home. Often times, a doctor may consider selling, but would never place a classified ad in a publication. Your letter may convert a hesitant seller into a new retiree!

Negotiating price

Once negotiations started in earnest, talk with the seller quickly turned to the most sensitive issue, price. The seller has poured his heart and soul into a practice and there is a lot of pride at stake. A seller could be greatly offended by a young doctor offering a low-ball price. Not to mention that many sellers expect the sale to fund a large chunk of their retirement.

On the other hand, sellers seldom consider the younger doctor's problems, such as the enormous debt burden that graduates face. The ensuing tug-ofwar will usually determine a fair price. If not, you must be prepared to walk away. Do not get emotionally attached during the early stages of a negotiation.

Some words of advice: the purchase price is not the most important part of a deal. You must consider the big picture. Will the senior doc stay involved in the practice? Will the senior doc sign a work agreement? Will the non-compete clause be tough enough? Is the senior doc going to finance? How much are the down payment, monthly payments and rent? Can you purchase the building, or at least get a purchase option on the building?