VM’s series on private equity’s new role in the optical business is exploring investors’ and optical retailers’ and ECPs’ perspectives as a wave of deals are occurring. Aside from looking beyond the headlines to better understand what’s prompting the flurry of acquisition and consolidation we’re seeing, we chose, in the second part of our Private Equity series, to tackle some of the things that sellers may need to consider in such an environment.

One element, which we hope to look into going forward, are the types of delivery “platforms” that are being viewed as those that can drive future vision care and optical business forward for delivering eyecare as well as eyewear.

Medical model? Value? Mainstream positioning? Luxury? There are many, many aspects of vision care and many diverse customer and patients to serve.

Another issue related to the industry’s latest investments, as well as strategic deals which have occurred in the past year or two, is the “orientation” of these moves. Do the investments take a long-term view or a short-term view? What’s defined as “long” or “short” depends on who you talk to. Is it more than a two- to three-year horizon, when a company comes in, adds expansion and value and in turn, looks to sell or exit?

Is it a longer five- to seven-year horizon or one that is even more forward than that? And how does that impact the decisions, operations and quality of the outcome for all involved?

These questions apply to the larger number of retail or delivery oriented deals that we’ve seen so far as well as to the increasing number of deals and acquisitions that we are seeing in the pharmaceutical and systems areas. Equity means resources for the future, but a plan for execution is equally important for businesses that want to really thrive.

What are your questions or concerns about these developments? We continue to be interested and open to your opinions and your ideas on this very important topic.

E-mail me directly at maxelrad@jobson.com or shoot a note to my colleague, John Sailer at jsailer@jobson.com and let us know what you think.

maxelrad@jobson.com