Questions Potential Sellers Should Ask Themselves Before Making a Private Equity Deal By Staff Monday, September 14, 2015 12:28 AM RELATED CONTENT Private Equity's Optical ‘Opti-mism’ Recent Optical Retailer Acquisitions and Private Equity Investments With private equity’s increasing interest in the eyecare and eyewear sector, it may be time for practice owners, both large and small, to consider the questions they should ask themselves before entering into any deal. Based on conversations with both buyers and sellers in this market, VM developed the following list of questions sellers should ask themselves about potential deals: Does my company have solid bottom line performance, consistent over the years, demonstrated with supporting financial statements? Are my fundamental operations effective and efficient yet still have the potential to benefit from the additional resources that would result from consolidation? How would I feel if the new systems instituted by the new owner are not the ones that I, my leadership or my staff developed? What can my staff expect in the future after the deal is made? Do I want to stay involved at all in a transition of my company? If so, for how long, what would be my role in the new company, and what would be the plan for my eventual exit? Should I take a lump sum payment or payments over time and how will my choice affect my taxes? Will I pay more taxes for a capital gains transaction or for an ordinary income transaction? Will my practice’s model and culture fit with any others it is joining in a consolidation and will they continue after that transaction? Will my brand continue or be replaced by that of the acquiring company? How do I determine the value of my company? When approached by a potential buyer, how can I determine how they have handled investments that have gone well and those that have not gone so well? How do I determine if the timing is right for me to sell?