TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
Home/Buying & Selling a Business/Optometry Practices
№ 01Buying & Selling a Business · Optometry Practices · Canada-Wide

Buying or selling a optometry practice

Optometry practices in Ontario carry the same professional-corporation share rules as dentistry and medicine, but with a layer most of those practices don't have — a retail eyewear operation running alongside the clinical side, priced and diligenced almost like a separate business bolted onto a regulated one.

Part of Healthcare & Wellness — see the family overview.

№ 01.1The Numbers That Drive the Deal

The numbers behind the deal

Every figure below is a typical Canadian deal-market pattern, not a valuation — use it to sanity-check what you're being told.

MetricTypical benchmarkUse this to
Two businesses under one roofThe clinical practice and the retail eyewear operation are valued somewhat separately — clinical revenue on a practice multiple, retail on its own inventory and margin profile.Ask for financials that actually separate clinical billings from eyewear retail before applying any single multiple.
Volume versus valueThis is a lower-volume, higher-value category compared to most main-street businesses — fewer deals happen, but each typically represents an established patient base and retail relationship.Expect a more involved diligence process than a typical small-business sale, proportional to the value involved.
Share ownership is legally restrictedVoting shares of the professional corporation must be held by a licensed member of the College of Optometrists of Ontario, similar to the dental and medical model.Confirm the buyer's own licensing status before going further.
Supplier and retail agreementsEyewear frame and lens supplier agreements, and any lab relationships, affect retail margin in ways that don't show up in the clinical side of the financials.Review supplier terms as a distinct line item, separate from patient-volume metrics.
1

Voting shares of a professional corporation must be held by a licensed member of the College of Optometrists of Ontario — the same ownership-restriction model used in dentistry and medicine — which sets the buyer pool before price is even discussed.

2

A Certificate of Authorization update is a standard closing condition reflecting the change in ownership, and the College's own processing timeline is typically the biggest driver of how long the deal takes overall.

3

Patient records are transferred under the province's health-privacy rules for health information custodians — a distinct legal obligation that applies on top of, and separately from, the retail eyewear side of the business, which carries no such requirement.

№ 01.2The Deal, End to End

Six steps, from offer to ownership

The same sequence underlies almost every optometry practice deal — what changes from deal to deal is how long each step takes, and which one becomes the bottleneck.

Reaching an agreement

01

Offer & conditions

The offer sets price and key terms — for a optometry practice it should build in the conditions that actually matter from day one, not just financing.

usually 1–2 weeks
02

Agreement of purchase & sale

The APS fixes price, structure — asset or share — and closing date, plus the reps, warranties, and holdbacks that protect you if diligence turns up something different than promised.

1–3 weeks to negotiate
03

Key transfers open in parallel

Professional-corporation share rules, Certificate of Authorization, Patient records (PHIPA), Retail eyewear inventory/suppliers, Associate agreements all start moving at once, on separate clocks — this is usually where optometry practice deals are won or lost.

often the critical path

Getting to closing

04

Diligence & searches

Corporate, PPSA lien, and litigation searches confirm what you're actually buying; we chase down licence standing and records the seller doesn't always have to hand.

2–4 weeks, in parallel
05

Closing day

Funds, keys, and signed documents change hands, alongside any inventory count and interim authorizations that bridge the gap until final transfers are confirmed.

1 day, once conditions are met
06

After closing

We track final licence confirmation and the staff transition through to completion — nothing is left for you to chase once the deal is done.

1–2 week tail
Most single-location deals close in 90–180 daysLarger, multi-location, or regulator-heavy deals typically run longer.
№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in almost every optometry practice deal — and it changes what you're buying, what you're taking on, and how it's taxed.

QuestionAsset purchaseShare purchase
What you buyIn the rare case an asset structure were used, the equipment, patient records, retail inventory, and goodwill — uncommon for a full practice sale.The shares of the professional corporation — the clinical practice, its patient relationships, its retail operation, and its liabilities.
Who can hold the sharesNot applicable in the same way to an asset purchase, though clinical licensing still governs who can operate the practice.Voting shares must be held by a licensed member of the College of Optometrists of Ontario.
Certificate of AuthorizationWould still be required for the practising entity regardless of structure.A new or updated certificate reflects the change in ownership — a standard closing condition.
Patient records (PHIPA)Custodianship rules apply the same way regardless of structure.Transfer of custodianship is governed by health-privacy rules for health information custodians.
Retail eyewear inventory/suppliersInventory and supplier agreements transfer as ordinary business assets, unregulated by the College.Inventory and supplier agreements carry with the corporation, reviewed separately from the clinical diligence.
Tax angleGenerally less tax-efficient for the seller, part of why this structure is rarely used.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical use in this sectorUncommon for a full practice sale.The standard structure for buying or selling an established optometry practice.
What you buy
Asset sale

In the rare case an asset structure were used, the equipment, patient records, retail inventory, and goodwill — uncommon for a full practice sale.

Who can hold the shares
Asset sale

Not applicable in the same way to an asset purchase, though clinical licensing still governs who can operate the practice.

Certificate of Authorization
Asset sale

Would still be required for the practising entity regardless of structure.

Patient records (PHIPA)
Asset sale

Custodianship rules apply the same way regardless of structure.

Retail eyewear inventory/suppliers
Asset sale

Inventory and supplier agreements transfer as ordinary business assets, unregulated by the College.

Tax angle
Asset sale

Generally less tax-efficient for the seller, part of why this structure is rarely used.

Typical use in this sector
Asset sale

Uncommon for a full practice sale.

We tell you which structure fits — before you sign anything.

№ 01.5Due Diligence, Both Sides

What gets checked before closing

Different lists depending on which side of the deal you're on — both matter for how smoothly closing goes.

If you're buying

  • Confirmation of your own eligibility to hold voting shares under College of Optometrists of Ontario rules
  • Three to five years' financials, separating clinical billings from retail eyewear revenue
  • Certificate of Authorization application requirements and expected processing time
  • Retail supplier agreements and current inventory valuation
  • Associate agreements and non-solicitation terms
  • Patient records custodianship and health-privacy compliance plan
  • Lease terms where the practice operates from leased premises
What we do: run the searches, chase the certificates, and flag anything that changes your price or your conditions.

If you're selling

  • Clean practice books and current College standing
  • Certificate of Authorization and college filings in order
  • Patient records organized for a compliant handover
  • Retail inventory counted and supplier agreements documented
  • Associate agreements reviewed for what happens on sale
  • A transition plan for existing patients and staff
What we do: tell you what a buyer's lawyer will ask for — before they ask for it.
№ 01.6Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Other costs to budget for, depending on your deal: Certificate of Authorization application fees, retail inventory valuation at the count, appraisal costs given the value typically involved, a broker's success fee if the practice was listed, and any associate buyout consideration. We confirm all of these once we see your agreement.
Most deals start here

An owner-run business

A single optometrist selling to another licensed optometrist, with a modest retail eyewear operation and a straightforward patient base.

Start my file
A bit more involved

A larger or more complex deal

A multi-location or multi-associate practice, a large retail eyewear operation with significant supplier agreements, or a buyer whose licensing status needs confirming first.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.7The Landscape

Optometry Practices, in context

Typical deal size
$250K–$2.5M
Typical closing
90–180 days
Usual structure
Share sale

Typical patterns across Canadian deals — not a quote or advice; every deal is confirmed on its own facts.

№ 01.8Before You Ask

Common questions

Can I buy an optometry practice through a holding company?

The College of Optometrists of Ontario requires voting shares of the professional corporation to be held directly by a licensed member, similar to the dental and medical model. Confirming what structure you're actually eligible to use comes before anything else in this kind of deal.

Is the retail eyewear side of the practice regulated the same way as the clinical side?

No — the retail eyewear operation, its inventory, and its supplier agreements sit outside the College's regulatory framework, even though they're often run out of the same corporation and the same location. We diligence and structure that side separately from the clinical rules.

Why does the Certificate of Authorization take so long to update?

The pace is usually set by the College's own processing timeline for the new or updated certificate, not by how quickly you and the seller can agree on terms. That approval is a standard closing condition and genuinely drives the overall timeline.

What happens to patient records when the practice sells?

Custodianship transfers under the province's specific rules for health information custodians. How records are secured and accessed through the transition gets handled deliberately, as part of the sale itself.

Do associate optometrists stay on after the sale?

That depends on their existing associate agreements and what's negotiated as part of the deal. Continuity of associates affects how much of the patient base carries forward, so non-solicitation and continuity terms deserve real attention.

№ 01.9Resource Register

Official links

ResourceOfficial link
College of Optometrists of Ontario
Professional-corporation ownership rules
Visit www.collegeoptom.on.ca
Information and Privacy Commissioner of Ontario
PHIPA and patient-record transfer
Visit www.ipc.on.ca
ServiceOntario — business registration
Updating business name/ownership records
Visit www.ontario.ca

Where we close optometry practice deals

Ready to begin?

Tell us about your optometry practice deal — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
ContactStart a File →