FREQUENTLY ASKED QUESTIONS

 

+ How long does it take to sell a pharmacy?

There are no hard and fast timelines in the sale of any small business. We have closed deals in as short a time as 60 days after taking a listing, as long as five years after taking a listing. The average time today from listing to closing is in the range of ten to twelve months.

+ Is there a rule of thumb to easily value my pharmacy?

From our perspective, potential sellers, or those developing an exit strategy plan, do themselves a big disservice by using any formulas or rules of thumb to develop the value of a pharmacy. The valuation process of pharmacies today is complex, takes into account many factors and should be done by a professional who is actively engaged in the buying and selling of pharmacies.

+ Are chains the only buyers who pay all cash?

Absolutely not, there are many well capitalized independent operators, some of them multi-store owners, who have the capital and the borrowing power to pay all cash for the right opportunity. Additionally, there are a number of banks who understand the pharmacy business and are providing loans to buyers who have the expertise and some equity of their own to invest in an acquisition.

+ Why can't I just sell my pharmacy myself?

Four important reasons to use our firm are:

  1. The ability to maintain the utmost confidentiality.
  2. The ability to expose your business to the broadest base of buyers, not just local buyers or customers of your current wholesaler.
  3. The ability to get an objective and realistic fair market valuation of your business based on current comparable sales as well as financial and operational information you provide.
  4. The ability to have a motivated and experienced third party involved in every step of the transaction including finding the buyer, negotiating the deal and shepherding it to a successful conclusion.

+ Should I give my business information to chain pharmacy acquisition representatives?

Under no circumstances should you give anyone any confidential information about your business, sales, costs, Rx counts, etc. without first having a signed confidentiality agreement in place, something we execute with all sellers and buyers at the start of every proposed transaction.