Brokerage is a commission-based service that is usually paid for by the Seller upon successful completion of the transaction. The fee is based on the total purchase price of the transaction.
For most transactions the Fee is 10% of the purchase price. There is a minimum Fee, and there are discounts for very large transactions and for “private” transactions, where the buyer and seller already are aware of each other. Don’t hesitate to ask us if your transaction might qualify for any of these discounts.
If you are a buyer, there normally are no fees payable to us from you, even if you have asked us to represent you in your negotiations with a specific seller who has representation already. If you are interested in a specific practice, be sure to contact us BEFORE you initiate contact with the seller or the seller’s broker. There are circumstances where there will be commission fees paid by the buyer, but they are unusual and we will explain those before you commit to using our services.
If you wish to be more assertive in your search, and your target is one contiguous area, consider our PracticeFinder service. You will need to sign a Buyer Representation Agreement. The fee for PracticeFinder is $2,000 for up to 100 letters; additional letters to the same area and mailed at the same time will incur a supplemental fee of $5.00 per letter. If you complete a purchase transaction through us within six months, we will reimburse you the full amount you paid for the PracticeFinder service.
Why do we charge for our PracticeFinder service? Partly to cover our out-of-pocket costs, but mostly to demonstrate that you are a serious buyer. Unlike some of our competitors who send out mass mailings to all practices, we don’t want to waste the time of practice owners who are potential sellers unless we really do have an interested buyer.
Keep in mind that the purpose of PracticeFinder is to entice an owner to consider selling. One way that we do that is to tell the seller that our client, the buyer, will pay the brokerage fee; so you should keep that in mind as you consider the overall costs of finding a practice. (Knowing the amount in advance, of course, gives you the opportunity to adjust your purchase offer accordingly.)
Practice Management and Professional Alliance services are billed at $320 per hour, plus expenses. Travel time and waiting time are billed at half-rate. Full-day travel without direct consulting is billed at $2,000 plus expenses. The maximum billable amount per day including consulting is $3,000 plus expenses.
There is an initial retainer required of $1,000 which is applied toward services and expenses. Fees are billed monthly. We are happy to estimate the total cost of your project before we begin.
Appraisals for optometry practices and optical shops are at a flat fee of $3,200 and do not require a visit to your practice. Appraisals for ophthalmology practices depend on the complexity of the practice, and range in price from $3,200 to $5,000.
The fee for an appraisal includes post-appraisal clarification discussions with the client. Some added services, such as revising the appraisal based on changed or previously omitted information, or discussions about the appraisal with potential buyers, would be outside the scope of the initial appraisal, and would be subject to an additional fee.
Sometimes you need only “the number” without the formality of the full appraisal letter. We provide the same comprehensive analysis, but without the documentation of an opinion letter. Called a Market Value Number, the fee for this abbreviated form of appraisal is $2,200.
Expert Witness Testimony
Each day of testimony is billed at $3,000, regardless of the actual testimony and/or waiting time. Away-from-office time (travel day, for example) without testimony is billed at $2,000 plus expenses. Consultation with client and/or client’s representative is billed at $320 per hour, plus expenses, in addition to any away-from-office fees, up to a maximum total fee of $3,000 per day, plus expenses.