Acquisition Capital • Arizona OD Practice Buyers

Acquisition Capital Architecture
for the Acquiring OD

Acquiring an established optometry practice is the highest-leverage ownership transition available to an Arizona OD. Lumina Medical Capital structures the capital that makes the acquisition executable — precisely, efficiently, and without unnecessary equity dilution.

Initialize Practice Equity Assessment → ☎ 888-653-0124

Intelligence Report — Node 03

Why Practice Acquisition Outperforms De Novo for the Arizona OD

Lumina Medical Capital regularly advises Arizona optometrists confronting the foundational practice ownership decision: build a new practice from scratch, or acquire an established one. For the OD operating in the Scottsdale and Greater Phoenix market, the calculus is rarely close.

An established practice comes with its most valuable asset already constructed: an active patient base generating day-one revenue. The acquiring OD steps into a functioning clinical and administrative infrastructure — staff, systems, supplier relationships, and patient recall programs — that would require 18–36 months and $250,000–$500,000 to replicate from zero, with no revenue during the build period.

The acquisition capital required to purchase that established infrastructure is not a cost. It is an investment — one that typically produces positive cash flow from the first month of ownership and builds equity that is ultimately realizable at an institutional multiple when the acquiring OD eventually reaches their own exit event.

Capital Deployment Architecture

The Acquisition Capital Stack: Four Instruments, One Structure

Every optometry practice acquisition is capitalized through a layered structure. Lumina engineers each layer to minimize the acquiring OD's equity contribution while maximizing lender confidence and transaction velocity.

Layer 1 — Senior Debt (60–80%)
SBA 7(a) Primary Tranche

Covers goodwill, hard assets, working capital, and closing costs. Up to $5M. 10-year term for goodwill acquisition. Lowest monthly debt service per dollar deployed.

Layer 2 — Seller Note (10–20%)
Seller Carryback Note

Seller extends subordinated note at negotiated rate (typically prime + 1–2%). Reduces buyer's senior debt burden. Aligns seller's interest in a successful post-close transition. SBA lenders generally accept seller notes that are fully on standby during SBA loan term.

Layer 3 — Equity Injection (10–15%)
Buyer Equity Contribution

The acquiring OD's personal capital contribution. Lumina's structuring minimizes this component — preserving personal liquidity for practice improvements, working capital reserves, and lifestyle during transition.

Layer 4 — Working Capital Line (Optional)
Post-Close Operating Line

Revolving credit facility for the 6–18 month post-acquisition period. Protects against A/R timing gaps, payer lag, and unexpected transition expenses. Deployed selectively based on practice cash flow profile.

Acquisition Capital Benchmarks

Arizona optometry practice acquisition, $1.2M–$2.0M purchase price range.

SBA 7(a) maximum commitment $5,000,000
Standard equity injection required 10–15%
Goodwill amortization term (SBA) 10 years
Equipment amortization term (SBA) 7 years
Minimum DSCR (lender threshold) 1.25x
Typical commitment-to-close timeline 45–75 days
Minimum credit score (conventional) 680+
Documentation Checklist
  • → 3 years personal tax returns
  • → Current personal financial statement
  • → 3 years target practice tax returns
  • → Target practice P&L and balance sheet
  • → Letter of Intent (executed)
  • → Practice lease or real estate terms
  • → CV / professional credentials
Related Intelligence
Partner Buyout Capital Structuring — The Equity Event ODs Underestimate
Access Report →
Acquisition Capital

The Practice Exists.
The Capital Is the Variable.

The Arizona optometry acquisition market rewards the OD who arrives at the negotiating table with a capital commitment letter already in hand. Lumina delivers that letter — structured, credentialed, and ready to close within 45 days of LOI execution.

Initialize Practice Equity Assessment →

Complimentary advisory. Institutional execution.