Tag: Iris

Enhancing Value through Transformation to a Full-service Practice

Buying-Selling A Practice, Practice

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For health care providers, interprofessional collaboration is key—and that’s never been more true than in the working relationship between optometrists, opticians, and ophthalmologists.

Although this relationship can be fraught, the interprofessional model can enhance eye care delivery services and do wonders for your bottom line.

Through a partnership with IRIS in 2016, BC Optician Phil Mattes, was able to immediately unlock a substantial part of the equity in his optical business. The IRIS partnership then enabled the business to add optometric services to the practice, creating additional value and facilitating a successful exit strategy and a retirement plan for Mattes.

In this case study, we look at Phil’s journey with IRIS, and the challenges and successes he faced along the way.

Retirement Planning – Get an Early Start
At 62, Phil was starting to think about retirement. His store, Optix, was an attractive street-level store on  Marine Drive in Vancouver, and he decided it was time to start thinking about selling the store. Since exit planning can often take 5-7 years or longer to implement, Phil knew he needed to find a strategy soon; “You have to prepare for this years before and have a plan and start early, and not wait until the time you want to retire”.

Phil’s first thought was to sell the business to the current staff. He had the business professionally appraised and offered his staff the opportunity to buy the store. After a substantial discussion, the staff ultimately decided not to pursue the opportunity.

Phil had hoped that selling the store would be his reward for building up his practice for so many years. Fortunately, he did not have to look far to find a potential buyer.

Opportunity Knocks
Phil told a colleague about his staff’s decision not to buy, and word travelled fast, as it often does in the optical world. Soon afterwards, he got a call from IRIS about the possible sale of his business and took them up on a lunch meeting.

IRIS was able to offer him the value of the appraisal that he had previously commissioned, so he moved ahead with the acquisition process.

Phil signed the agreement with IRIS in February 2016; IRIS would purchase 75% of the business, and Phil would continue to own 25% for the next three years. While IRIS initially wanted to extend the partnership to five years, Phil decided that three years was enough for him—so they settled on his requirement.

Phil received a significant portion of the cash up front, with future payouts that would vary depending on sales performance over the three-year “earn-out” period.

Transforming an Optical to Full Service Eyecare
Prior to the partnership, Phil did not have an in-store optometrist. He relied upon referrals to local ophthalmologists and walk-in prescriptions. Increasingly, he observed that customers increasingly would buy their frames at the clinic where they got their exams instead of coming back to his store. He knew he would keep more customers with an optometrist at his location.

The IRIS partnership resolved this challenge by transforming his optical store into a full-service eye care and eyewear practice, with the addition of in-house optometric services.  There were significant changes required to complete the transformation.

 IRIS added a pre-test room and refractive and diagnostic equipment in order to fully outfit an optometric lane at the location. Although it required some shuffling, Phil was happy with the result. The stage was now set for expanding the practice and building greater value in Phil’s remaining equity.

Business and Personal Challenges
Another adjustment stemmed from the difference between the frames Optix and IRIS sold. Optix had always been known for its unique fashion-forward frames: “we were always known as more of a boutique-y store. A lot of frames from France, from Germany, and Japan. They weren’t typical IRIS brands.”

When he explained that clients come to Optix because of the unique frames they carried, Phil was able to reach a compromise with IRIS. The store would let go a few of the lines but kept the top performers to satisfy discerning clients.

From Left to right: Paul Schinkel, Phil Mattes, present manager Duane Salmon

One of the biggest challenges for Phil was the transition from a paper-based office to electronic records. There were a few late nights learning the new system: “I would say I was probably illiterate on the computer to a certain extent. But they didn’t put pressure on us.”

Fortunately, one of his longtime staff had worked for IRIS in the past and was able to transition to the new system quickly.

It was also a challenge for Phil to go from an owner, to a management position and then part-time staff: “It’s a tough transition going from owner-boss-manager to a part-time person. And that’s a big adjustment for me because I still like to call the shots. But you have to adjust to that.” He saw it as a necessary step on the road to leaving the store completely in his retirement.

The End Result
Overall, Phil found extra security in partnering with a large corporation, particularly with the knowledge he had a new safety net in case things go wrong—as well as having a successfully implemented retirement plan.

The greater spending power and the resources that a well-financed partner brought to the table was a relief from the uncertainty he’d sometimes felt as the sole owner of the business.

Ultimately Phil was happy with the decision he made: “It’s been a good experience, challenging adjusting to the new stuff from IRIS, but I really look at it this way. I win, IRIS wins, so it’s a win-win situation. Everyone’s happy with this. You can’t ask for a better situation than that.”

Today, Phil is fully retired.

He is enjoying “cabin life” in Manitoba, which includes golfing, fishing and the occasional cabin maintenance chore.

Looks like there’s Pickerel for dinner tonight!

 

 

 

 

IRIS the Visual Group provided Eye Care Business Canada with unconditional access to four Eye Care Practitioners who completed a partnership agreement  and/or  transaction with the group. Each partner story provides an insider’s view to the the acquisition;  challenges faced, obstacles overcome and the final results.

This is the second of four in the “The Power of Partnership” series.

 

Related Articles: 

Power in Partnership: Overcoming Challenges Together (Dr. Christa Beverley, Barrie)
Eyes Wide Open Podcast:  How IRIS Challenged the Ontario OD Regs and Won
Eyes Wide Open Podcast:  IRIS sees Sliver Linings Behind the Covid Clouds
Insight Profile:  Dr. Daryan Angle, IRIS VP Business Development

 

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Overcoming Challenges Together: An Insider’s Look at Selling Your Practice

Buying-Selling A Practice, Practice

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Optometry is a complex, challenging career—and managing an independent practice on top of seeing patients is exponentially more difficult. If you are considering selling your practice, you’re not alone.

Many other independent practice owners decide to sell in order to focus on their profession, prepare for retirement, or just to take some work off their plate.

The following case study was one of the first optometry acquisitions in Ontario made by IRIS, and the experience of Dr. Christa Beverley gives some insight into the acquisition process.

Dr. Christa BeverleyDr. Beverley bought her Barrie, ON practice after the former owner suffered health issues that forced her to stop working. Subsequently, a business partner purchased half the practice, and together, they moved to successively larger offices establishing themselves as a progressive practice with happy staff and satisfied patients.

A Few Twists and Turns
Her partner started to take an interest in the IRIS business model, and after some talks with Dr. Francis Jean (the late founder of IRIS), Dr. Beverley ultimately became partners with IRIS. The partnership agreement was a long and difficult negotiation process, and included a plan for two new startup practices.

The original arrangement proposed would have resulted in IRIS owning 50% of the practice, and Dr. Beverley and her partner with 25% each. After some family issues forced her partner to relocate, IRIS bought his half of the practice, and recalibrated ownership to a 50/50 position with Dr. Beverley.

With significant emotional investment on the part of both parties, negotiations were tough. At the time, IRIS had less flexible rules around their business model; in particular, there was an expectation that their doctors work five days a week, which didn’t suit Dr. Beverley: “I didn’t want someone telling me that I couldn’t take Wednesday afternoon off, or if I had to work late nights.”

She was able to negotiate with IRIS to retain her existing work-life balance, describing them as “special considerations” that she and the company ironed out.

IRIS has since become much more flexible around work-life balance in general. As the current VP of Business Development for IRIS, Dr. Daryan Angle describes it, “The lifestyles of our optometrists and partners are very important to us. Schedules are based on open discussion and consideration of what is best for the practice, business and partner. In the early days, on-boarding new practices and staff did prove to be difficult before IRIS had developed a comprehensive strategy and dedicated team.”

Hard Lessons Learned
There were a few more difficulties as well: Dr. Beverley partnered with IRIS on two other new locations, which struggled to succeed. She thought that the cold starts would be manageable, but they proved to be more difficult than she envisioned.

After their failure to launch the new locations, IRIS bought them back from Beverley—so although she didn’t have the lucrative new business she expected to have, she was saved from losing money on them.

In Dr. Beverley’s words, “IRIS is great in that they saw what we saw—which, the end, was the error in all of our ways. It is really hard to do cold starts no matter how good you are at it.”

Challenges with On-boarding
The acquisition was also an adjustment for staff, with new checks and balances contributing to some turnover. Dr. Beverley described the process as a “bit of a free fall,” with management assistance from IRIS in the early days being less robust than it is now: “I know that the systems are in place now so it’s a lot different, there’s actually people to onboard stores and to be there and to help.”

Bariie IRIS Team Ready to Reopen

In addition, the IRIS business model offered glasses at a high price point at the time, which were an issue with some customers used to seeing less expensive options. IRIS has since shifted to offer more value options in 2017, when it was acquired by New Look Vision Group Inc. This helps new acquisitions stay competitive given their geographic region and the market they serve.

IRIS Partnership Offers Exit Options
Ultimately, Dr. Beverley feels that the sale was the right decision for her business. Even though it was hard for her to let the management side of her practice go, she acknowledges there’s an upside to handing over the administrative tasks: “I don’t have to do anything except be a doctor.”

Another upside for her was that the acquisition means she’ll always have an exit strategy ready if she decides to sell. As a partner, she also could continue to collect dividends as a retirement strategy as an alternative to selling her share of the practice, once she found someone to replace her.

She says that ultimately, she would have decided to wait a little longer if she had to do it again, but doesn’t know if she’d advise someone else to do the same.

For practitioners who don’t like handling the management side of their practices or those that need a little more time in their day, she says it’s a good solution: “as a way to sell a good practice to a company that’s going to keep your practice amazing and make your patients happy, and respect your patients and look after them and make sure they have a great standard of care, then it just makes you feel like you are sort of leaving it or selling it to somebody who’s like you.”

Any Regrets?
It wasn’t an easy process, but for Dr. Beverley the experience was worthwhile: “I think they’ve learned from the things that went wrong in our acquisition. I think for other people, it’s the control freak doctors like myself that will have the biggest struggle with this. But … that’s not why they wanted to be an optometrist—they wanted to be an optometrist to look at people’s eyes and have no business portion. And to work in IRIS and be able to do that, I mean, they’ll be as happy as they could be. It’s a perfect scenario.”

Dr. Beverley continues to work, on average, less than 3 days per week at the Barrie, Ontario location, and has a 50% stake in the IRIS practice.

This interview was conducted while she was relaxing at her cottage.

 

 

 

IRIS the Visual Group provided Eye Care Business Canada with unconditional access to four Eye Care Practitioners who completed a partnership agreement  and/or  transaction with the group. Each partner story provides an insider’s view to the the acquisition;  challenges faced, obstacles overcome and the final results.

This is the first of a four part series:  The Power of Partnership: Overcoming Challenges Together

 

Related Articles: 

Eyes Wide Open Podcast:  How IRIS Challenged the Ontario OD Regs and Won
Eyes Wide Open Podcast:  IRIS sees Sliver Linings Behind the Covid Clouds
Insight Profile:  Dr. Daryan Angle, IRIS VP Business Development

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COVID Sales: How Am I Doing?

Practice, Practice Metrics & Benchmarks, Products | Services | Industry News

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There is scant information on the havoc wreaked by COVID on retail optical and eye care sales in Canada.

Public companies must report their financials, and are therefore a potential source of some information.  Most, however,  are either in selective wholesale niche markets, such as contact lenses, frames or lenses which offer only broad directional signposts of market dynamics.

The supplier companies’ results reflect sales at the wholesale market level and are separated in time from the retail market.  Different sectors will vary on the impact of this time gap since retailers have the option to work down existing inventories where they can, e.g. frames.

Other suppliers’ sales, such as lenses, optical labs and contact lenses, more likely reflect consumer demand in real time.

We are a small player on the Global Scene
Another obstacle to gathering useful information is that the public corporations are almost exclusively multi-nationals. Canada-specific information is often hidden in the aggregate reporting of “North American” revenues.  Canada rarely warrants a reference in the global reporting from these companies.

So then, how are we to understand the Canadian market?  And, “How does an individual practice understand their performance relevant to competitors?”

Publicly Traded Optical Provides Some Insight
There is one insightful opportunity provided by the only publicly traded retail optical and eye care corporation in Canada, the New Look Group.

New Look, with its coast to coast network of banners, including IRIS, NEW LOOK, Vogue, Grieche and Scaff and others is not perfectly representative of the Canadian Market. It  is over-represented in BC, Quebec and the Maritimes, and underrepresented in other provinces, particularly Ontario.

While it is a far from a perfect benchmark for Canadian optical performance,  it is the best we have that is readily and publicly available.

So with these caveats in mind, let us see what story the numbers tell us.
The Q2 financial statements for the 3-month period ending June 27th,  reflects that most locations stopped operating in mid-March and started a gradual reopening in mid-May, with a complete reopening by June 21, the first day of summer.  Gradual reopening’s started in the first week of May. 

During this 3-month period, relative to the same period one year prior, revenues decreased by 64.9%. This decline primarily reflects COVID closures, but also includes scheduled store closures and offset by sales from newly acquired locations.

Even with its enviable financial resources and brand strengths, a  65% decline in quarterly sales is tough pill to swallow.

Nevertheless, in its Q2 statement, the company remains optimistic that it,”… has resumed its profitable growth journey, organic and external.”

Ultimately, consumer behaviour will determine the future course. Optical and eyecare practices taking the necessary and prudent steps to safe-guard associates and patients will significantly factor in, as will the responsibility we all have to protect each other to ward off a 2nd wave shut down.

We can only hope that New Look and all optical retailers continue to recover from the COVID catastrophe.

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Episode 15: IRIS Sees Silver Lining Behind COVID Clouds

Eyes Wide Open, Podcasts

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Dr. Daryan Angle, IRIS VP Business Development recounts how the COVID crisis accelerated the group’s advanced technology adaption and customer flow management.  IRIS continues to be bullish in acquiring partnerships and sees little impact on valuations as a result of COVID closures.

About the Guest

Dr. Daryan Angle graduated from the University of Waterloo School of Optometry in 2001. He joined IRIS in 2002 as a practicing optometrist in British Columbia, and shortly thereafter became a franchise partner with IRIS. In 2006 Dr. Angle relocated to Ontario. He currently holds the title of Vice President Business Development and in that role, primarily focuses on buying, partnering and integrating optical stores and optometry practices into the IRIS network.

 

Episode Notes

Dr. Daryan Angle recounts how IRIS, a 400-location network across the country subject to a variety of provincial regulatory edicts, not only withstood but excelled out of the COVID calamity.

IRIS took an early decision to lock down the entire network and then marshalled the organization’s significant resources to support staff through the various government programs to protect their livelihood.

Dr. Angle explains the intensity of the communications effort to keep everyone on the same page and informed of the group’s actions, including taking a centralized approach to secure Personal Protective Equipment (PPE).

He also explains how IRIS managed suppliers and landlords in their effort to preserve cash.

Daryan explains how the IRIS model, with relatively lower patient numbers with more personal service time, fit nicely with mandated appointment-only retailing. The pandemic actually accelerated IRIS’ move forward in their efforts to rigoursly manage the timeline of the customer journey for eye exams and dispensing.

The necessity to reduce patient contact time, also advanced e-commerce initiatives and their 3D technology partnership with Topology Eyewear, which can deploy remote facial scans to adjust the frame even without the patient on site.

Finally from the  IRIS perspective,  he explains how 3-year averaging and accommodation for the COVID closure period mitigates the impact on practice valuations. IRIS remains bullish on the market and actively seeks partnerships with independent opticals and optometric practices.

Resources

 

Dr. Glen Chiasson

Dr. Glen Chiasson

Dr. Glen Chiasson is a 1995 graduate of the University of Waterloo School of Optometry. He owns and manages two practices in Toronto. In 2009, he co-hosted a podcast produced for colleagues in eye care, the “International Optometry Podcast”. He is a moderator of the Canadian Optometry Group, an email forum for Canadian optometrists. As  a host of  “Eyes Wide Open”, Glenn  looks forward to exploring new new technologies and services for eye care professionals.

Dr. Chiasson enjoys tennis, hockey, and reading. He lives in Toronto with his wife and two sons.

Dr. Chiasson splits EWO podcast hosting duties with Roxanne Arnal.

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Insight with Daryan Angle

Insights

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Graduated from UW in 2001 and toiled a for a very short period for others before succumbing to his entrepreneurial bent by joining the IRIS team as a franchise partner in Waterloo.

Dr Angle rose to the corporate echelon of the IRIS Group and now serves as VP business development for the group.

Keep reading to find out how Dr. Angle envisions his perfect day and which business leader he most respects.

Dr. Daryan Angle

Optometrist

Optometry, University of Waterloo, 1996-2001

Physics, University of Alberta, 1994-1996

 

Why did you choose your field?

I always had a love and natural inclination for science and could never decide which area was more interesting physics, chemistry or biology. Optometry required all 3 subjects as prerequisites. I also wanted to work with people and own some kind of business. Optometry just fit. On top of all that, when I was a teenager it seemed that my childhood Optometrist was the most relaxed and happy adult ever.

Where do you see your practice / eye care in 10 years?

The confluence of digital commerce, and bricks and mortar will blend the online with the in-person  (omnichannel). That seamless transition between these spaces back and forth will be a key part of my practice in 10 years. Artificial intelligence will also be present, facilitating disease management, and eyewear dispensing thus allowing  for more quality human interaction with patients.

What changes do you see in eye care coming down the pipe?

Telemedicine will play an increasingly important role in servicing remote communities.

What is currently the most exciting thing in your field to help patients?

OCTs have been a game changer for early diagnosis and more precise understanding of retinal health.

What is something you plan on implementing in your practice this year?

Facial scanning technology for frame selection and bespoke custom frames.

What is something you have done in your practice to set you apart?

We have always provided a patient-centred, fully integrated eyecare and retail eyewear experience. The experience has been an evolution over 30 years and continues as technology can be leveraged to address a patient’s needs better and with high perceived value.

What business books would you recommend other ECPs read?

How to Win Friends and Influence People by Dale Carnegie

The Personal MBA by Josh Kaufman

Onward by Howard Schultz

Never Split the Difference: Negotiate as if your life depends on it by Chris Voss

The Laws of Human Nature by Robert Greene

21 Lessons for the 21st Century by Yuval Noah Harrari

Ego is the Enemy by Ryan Holiday

What advice would you give a new grad today?

Know your values and find the best environment to practice that fits those values.

What is your definition of success or what habits make you a successful person?

When the work you do doesn’t feel like work and you can still provide for and spend quality time with your family.  My success is based on the understanding that time is more valuable than money and decisions in life, must be made to leverage time in the most effective manner.

Which ECP speakers/leaders do you admire?

Dr. Francis Jean the late founder of IRIS was the ECP leader I admired throughout my formative years as an Optometrist and a leader. Now I would have to say I look at leaders outside of our industry. Howard Schulz, the founder of Starbucks is someone I deeply admire as he has built a great brand that is human and refined and continues to innovate and deliver high perceived value to its customers.

What is your favorite TV show / Netflix series?

Peaky Blinders on Netflix. It combines the best elements of a flawed protagonist, period setting ( early 20th century), drama, action and a modern soundtrack that fits.

Last time you laughed?

Tickling my 2.5 year old son, Sullivan. There is nothing more joyous than a belly laugh of a toddler.

What was your latest indulgence?

Dark Chocolate Peanut butter cups from Trader Joe’s

What’s your Favorite food?

Trini food – Curried goat, and Doubles especially

My mom is from Trinidad so I grew up with that food.

Favorite past-time/hobby?

Listening to Audio books.  Since I discovered Audible I became literate again, having read more books in the past 3 years than the previous 10. I love walking outdoors while listening, often on my way to the office and home.

What’s your favorite 80’s jam? (or decade you graduated high school in)

1980s

Dancing in the Dark – Bruce Springsteen. I recently watched the movie Blinded by the Light and was reminded of Springsteen’s genius.

Wake Me up Before you Go-Go – Wham!  This song makes you want to get up and dance no matter what.

1990s (High school)

Loser – by Beck. The combination of genres and quirky lyrics just blew my mind at the time.

Cannonball  – by The Breeders. I was a grunge kid for sure, a sucker for guitars with pop-py hooks.

What would you do if you won 10 million dollars? What would you do with your practice?

Spend more time with family and friends. I would continue to practice part time as there is no activity more satisfying than seeing patients.

What was the last gift you gave someone?

Gold earrings to my wife for Valentine’s day

How have you changed since high school?

I listen a lot more than I speak. Thanks to my wife Jill, I have become way more self-reflective and flexible in my thinking.

Tell me something few people know about you?

I used to perform Slam poetry in Vancouver in the early 2000s.

Describe your perfect day.

Wake up after 6.5 hours of uninterrupted sleep (between 6-6:30am).  Do yoga and meditation for 20 minutes.  Drink a cup of coffee from freshly roasted then ground espresso beans made in my aeropress. Make breakfast for my kids.  Go weightlifting at the gym followed by a sauna and cold shower.  Have breakfast as lunch with my wife at an all-day breakfast restaurant. Go for a long walk somewhere in nature. Play with my daughter and son outside. Go out for dinner with my wife followed by binge watching a tv program we both enjoy.

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