How do I assess the frame inventory in an optometry clinic I want to buy?

Begin with a physical count. Walk the displays and the back stock with the owner, and sort what you see by how recently each style was bought. Look for broken hinges, scratched lenses in display frames, and missing pieces.

Compare what you find with the books. Ask how the clinic values its frames, whether it has written down old stock, and when the last full count took place. A big gap between the count and the record deserves an explanation.

Ask how stock moves. Which brands and price points sell, which sit, and how quickly are slow ones marked down? Some suppliers take back unsold frames, so ask whether those arrangements pass to you. Check for frames held on consignment, since they are not the clinic’s to sell. Think about cash as well. A buyer who inherits a lot of old stock may have to spend to refresh it. Your accountant can show how inventory affects the clinic’s working capital, and how to deal with it in the sale terms. Ask also how the clinic keeps frames secure and tracked. Shrinkage from loss or theft is common in retail displays, and a clinic with no tags, counts or camera view may have fewer frames than its records say. Your count will make that visible.

Key takeaways

• Count frames and sort them by age, condition and completeness.
• Compare the count with the books and ask about write-downs.
• Check supplier return terms and consigned stock.