Optical Prism November 2018 | Page 21

Vision Alliance Partnership – led by an executive team with more than 70 years of combined optometric industry experience – says the hybrid model will keep the doctors in the driver's seat of the clinical aspects of the practice, while Vision Alliance, with its business and retail expertise, will handle all other operational duties. “This is designed as a partnership where each partner does what they are uniquely qualified to do,” says president and chief executive officer Ken Barbet, a four-time CEO who has worked in the eye care industry for the past decade. Vision Alliance's plan is to acquire 87 already profitable, independent optometric and optical practices in Canada over the next five years. After each purchase, the former owner will receive 60 per cent of the practice's value in cash and reinvest the other 40 per cent into their former practice to form a partnership with Vision Alliance. Each practice can retain its name, focus on optometry, management system, staff and choice of frame lines and laboratory partners. Vision Alliance will assume adminis- trative and human resources functions and offer operational support so doctors can have more time to focus on their patients.Those duties include recruiting, hiring and training staff, managing payroll, accounting work and marketing. The optometrist can decide, upon retirement, to retain 20 per cent of the practice to use as passive income via annual distributions. Vision Alliance says it has the experi- ence to improve business practices and enhance earnings by 75 to 100 per cent per practice within two years. The company's plan is to acquire 10 to 12 practices at first to validate the business concept and make any adjustments to the business model before buying more. Those increases are achieved because of operational efficiencies, new growth strategies, more frame and lens sales, better communication throughout the patient cycle, more innovative products for patients, improved patient satisfaction, tools to review practice performance and economies of scale. As part of the partnership with Vision Alliance, the value of the 40 per cent that the optometrists reinvest in their practice will increase in proportion to the improved practice performance. Barbet said the first group of practices Vision Alliance would like to partner with have been identified and discussions have begun. Barbet said once Vision Alliance has partnered with 50 practices, half of the profits will be returned to the share- holders via dividends while the rest will be reinvested into the business. For more information, contact Ken at [email protected] or 403-971-6512 or Patrick Cunningham, VP Operations, Partner, at patrick@cun- ninghammacgregor.com or 519-317-7996. “As revenue per patient grows, each doctor receives more in compensation each month,” Barbet says. Proudly Supporting Independent CANADIAN EYE CARE PROFESSIONALS with buying group benefi ts since 1988 Ad_1.indd 1 www.theopticalgroup.ca 1.800.263.0010 17-05-31 9:40 AM