How to Value a Multi-Location Optometry Group in 2026

Optometry is in the middle of the same private equity consolidation wave that transformed dentistry a decade ago. EyeCare Partners, MyEyeDr, and a half-dozen PE-backed platforms are aggressively acquiring multi-location optometry groups, and the multiples being paid would have been unthinkable five years ago. But not every optometry group qualifies for these premium valuations, and the gap between what a PE platform will pay and what a solo OD transitioning to retirement will get is enormous.

I've advised on optometry transactions on both sides — sellers positioning for PE exits and buyers building platforms — and the valuation framework is more nuanced than most owners realize.

The Range: 6-10x EBITDA for Multi-Location Groups

Multi-location optometry groups with $1M+ in EBITDA are trading at 6-10x adjusted EBITDAin today's market. That's a wide range, and where you fall depends on the number of locations, geographic density, managed care contract quality, and — critically — how much of your revenue comes from optical dispensary sales versus professional exam fees.

At the low end (6-7x), you have groups with 3-4 locations that are still heavily owner-dependent, where the founding OD sees patients 4-5 days per week and the other locations are staffed by associate ODs with varying productivity levels. At the high end (9-10x), you have groups with 8+ locations, centralized management, strong associate retention, and a proven model for opening or acquiring new locations profitably.

Single-location practices are a different market entirely — typically valued at 50-75% of gross revenue or 2-3x SDE, selling to another OD rather than a platform. The jump from single-location to multi-location valuation is one of the biggest arbitrage opportunities in healthcare M&A.

Optical Dispensary Revenue: The Margin Multiplier

What makes optometry unique among healthcare practices is that a significant portion of revenue comes from retail product sales — frames, lenses, contact lenses, and sunglasses. In a well-run practice, optical dispensary revenue typically represents 45-55% of total revenue, and it carries margins of 60-70% on frames and finished lenses.

Buyers look carefully at the capture rate — the percentage of patients who fill their eyewear prescriptions in-house rather than going to Warby Parker, Zenni, or a competing retailer. Strong practices maintain capture rates of 65-75%. Below 50%, the optical dispensary is underperforming, and a buyer will either see it as a turnaround opportunity (and pay less upfront) or a structural problem (competition from online retailers eroding your retail economics).

Frame inventoryis a balance sheet item that often catches sellers off guard during due diligence. A multi-location group might carry $200K-$500K in frame inventory across its locations. Buyers will want a detailed inventory count, and they'll negotiate hard on obsolete or slow-moving frames. I always advise sellers to clean up frame inventory 6-12 months before going to market — liquidate slow movers, optimize the mix toward higher-margin designer frames, and have a current inventory valuation ready.

The contact lens business is increasingly bifurcated. In-office contact lens sales face intense competition from 1-800 Contacts and online retailers. Practices that have shifted to annual supply programs with manufacturer rebates maintain better margins and patient retention than those still selling boxes one at a time.

Managed Vision Care Contracts

The managed vision care landscape — VSP, EyeMed, Davis Vision, Superior Vision — is a double-edged sword for optometry practice valuation. On one hand, these contracts drive patient volume. On the other, reimbursement rates are compressed and getting worse.

Buyers evaluate the payer mixwith surgical precision. A practice that's 70%+ VSP is vulnerable to rate changes from a single payer. The most valuable groups have a diversified payer mix: 30-40% VSP, 15-20% EyeMed, 15-20% medical insurance (for medical eye care), and 20-30% private pay and out-of-network patients.

The trend toward medical optometry— treating dry eye, managing glaucoma, co-managing cataract and refractive surgery — is a significant value driver. Medical eye care is billed through medical insurance (not vision plans) at higher reimbursement rates. Groups that have invested in diagnostic equipment (OCT, visual field analyzers, fundus cameras) and trained their ODs in medical management command higher multiples because they've diversified away from the managed vision care squeeze.

The PE Landscape: EyeCare Partners, MyEyeDr, and Beyond

Understanding who's buying is essential to understanding what your group is worth. The optometry PE landscape has consolidated around a few major platforms, each with a different acquisition strategy.

MyEyeDr(backed by Goldman Sachs and KKR) is the largest optometric platform by location count, with over 800 locations. They've focused on acquiring single and multi-location practices and converting them to the MyEyeDr brand. Their model emphasizes operational efficiency and optical retail optimization.

EyeCare Partners takes a different approach, often allowing acquired practices to maintain their local brand. They focus on building integrated eye care networks that include optometry, ophthalmology, and ambulatory surgery centers.

Several newer PE-backed platforms have entered the market in recent years, creating competition that has pushed multiples upward. For sellers, this is an ideal environment — multiple credible buyers competing for quality groups. But the window won't stay open forever. As platforms mature and grow through the 500-1,000 location range, they become more selective and disciplined on pricing.

The typical PE deal structure includes a significant cash-at-close component(70-80% of total consideration), a rollover equity stake (10-20%), and sometimes an earn-out tied to EBITDA growth. The rollover equity is designed to align incentives — you stay engaged for 3-5 years and participate in the platform's eventual exit at what should be a higher multiple.

What Kills Value in Optometry Groups

OD retention risk.Optometrists are the revenue generators, and if your associate ODs aren't under employment agreements with reasonable non-compete terms, buyers see a risk that those doctors — and their patients — walk out the door post-acquisition. Groups with strong associate retention histories (3+ year average tenure) and properly structured employment agreements command meaningfully higher multiples.

Lease concentration.A group where 3 of 5 locations have leases expiring within 2 years presents real estate risk that buyers must price in. Especially in retail-facing optometry — where location and visibility drive patient traffic — a lease that can't be renewed at reasonable terms can effectively kill a location's value.

Under-investment in equipment. An optometry practice without current diagnostic technology (no OCT, no digital retinal imaging, no electronic health records) signals that the seller has been maximizing short-term cash flow at the expense of competitive positioning. Buyers will estimate $75K-$150K per location in equipment catch-up and deduct it from their offer.

Private equity fatigue.Some markets are saturated with PE-owned practices, making it harder for independent groups to recruit ODs and negotiate with vision plans. If you're in a market where MyEyeDr and EyeCare Partners already have 30+ locations each, your group may face more competitive pressure than one in an underserved market.

Preparing for a Premium Exit

If you're running a multi-location optometry group and considering a PE exit in the next 2-3 years, start with these priorities:

Lock in your ODs.Get every associate optometrist under a written employment agreement with a 2-year non-compete. This is non-negotiable for PE buyers — they won't pay platform multiples without workforce certainty.

Grow medical eye care revenue. Every dollar shifted from vision-plan-reimbursed routine exams to medical-insurance-reimbursed diagnostic and management services increases both revenue per patient and margin per visit. Invest in the equipment and training to make this shift.

Optimize your optical.Increase capture rates, clean up slow-moving inventory, and build annual supply programs for contact lenses. The optical dispensary is where PE platforms see the most immediate operational upside, and they'll value a well-run dispensary accordingly.

Centralize operations. PE buyers want to see that your multi-location group actually operates as a group, not as a collection of independent practices that happen to share an owner. Centralized scheduling, purchasing, billing, and HR demonstrate operational maturity that justifies a higher multiple.

The Bottom Line

Multi-location optometry is in a rare valuation sweet spot. PE interest is high, multiple platforms are competing for quality groups, and the healthcare services consolidation trend shows no signs of slowing. But this window is finite. As the major platforms approach scale, they'll become pickier and more disciplined on price. Groups that position themselves now — diversified payer mix, strong associate retention, modern equipment, centralized operations — will capture the best of this cycle. Those that wait risk selling into a buyer's market rather than a seller's market.