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Selling a Pharmacy Business

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Put the Power of an Experienced Pharmacy Broker on Your Side

Dan Lannon RPh is the Founder and CEO of Pharmacy Consulting Broker Services (Pharmacy CBS). Dan is a licensed and insured business broker and former multi-pharmacy owner who specializes in selling pharmacies. It is all he does. Dan has sold over 170 pharmacies and has vast experience selling to both independent buyers and chain buyers. Dan prides himself on bringing competition into the selling process to get his clients the highest possible price while helping them avoid inherent risks in the process. Dan’s background and experience as well as his 300 plus hours of formal education in client representation, fiduciary duty, and best practices in seller representation sets him apart from others in this industry.

Pharmacy Consulting Brokerage Services, offers full business brokerage services to help you sell your pharmacy for the highest possible value. As a fully licensed business brokerage that only sells pharmacies, we have extensive experience selling all types of pharmacies (retail, long-term care, compounding and specialty) nationwide to both independent buyers and large chain buyers. We provide services for any size pharmacy. From small stores to large stores to multiple locations, no deal is too big or too small.

Reach out to us for more information about selling a pharmacy business and the best ways to calculate the overall business worth of your pharmacy, or call us toll free at 888-808-4774. We would be happy to assist with any questions that you may have.

Chain vs. Independent: Who Pays More?

That depends on multiple factors. We often see independent buyers, when brought through our proprietary process, outbid chain buyers. We also see chains pay a premium to “make the other buyers go away” as they not only want to eliminate you as a competitor, but they also do not want me to sell your pharmacy to an independent buyer or another chain. This entire process makes chains and independents pay more for your pharmacy. To determine the value of the pharmacy, we will first start with a discretionary cash flow analysis and Market Analysis. We then create competitive tension among multiple buyers to bring you the highest and best value for your pharmacy. You operate “business as usual” and we work behind the scenes in a confidential process to maximize your selling price.

 

Why Use a Broker When Selling Your Pharmacy Business?

When negotiating the sale of a pharmacy, corporate pharmacy chains and savvy independent buyers will attempt to devalue your business. That’s why it’s imperative to consult an experienced, licensed and insured pharmacy broker before making any big decisions. With a network of eager buyers and our ability to introduce competition into the bidding process, Pharmacy CBS can ensure you get the best possible deal with the least amount of risk. Click here for more information regarding the advantages of using a broker when selling your pharmacy.

 

Know When It’s the Right Time to Sell Your Independent Pharmacy

There are several reasons why an independent pharmacy owner may want to sell their business. Each of these motivations provides a valid purpose for wanting to move on to other areas of life. Some examples of an independent pharmacy owner wanting to sell their business, may include the following:

  • Retirement
  • Reduction in overall revenue
  • Shrinking profit margins
  • Competitive pressures
  • Changing business models
  • Feeling burnt out and overwhelmed

Far too often, we see pharmacy owners wait too long before deciding to sell. Although the ideal time to sell your independent pharmacy is when it is operating at peak financial performance, we understand that annual sales and profits may be leveling off, or even on the decline. Even if you are unsure if it’s the right time to sell, Pharmacy CBS can help you weigh the benefits and drawbacks of selling given your current situation. Regardless of the current fiscal state of your business, we will do everything we can to procure the best possible selling price for your pharmacy.

 

The Selling Process

We have established a detailed, step-by-step approach for selling a pharmacy, which simplifies the entire selling experience from initial consultation to the closing date, and beyond. Our refined, straightforward approach allows us to take control of the selling process, giving the seller the opportunity to concentrate on their future.

 

Getting Started with Selling your Pharmacy

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A free, confidential, no obligation phone call helps us get to know you and your situation. If you decide to use our services, we will send you all the documents you need to get started and set up a phone call to go over all the information. Rest assured that you can cancel our Agreement any time without penalty. We only get paid when you get paid. We do not have any upfront fees or progress fees.

Calculating the Value of your Pharmacy

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Knowing your value is a critical step to sell a pharmacy at the highest price. We will first do a Discretionary Income Analysis and Market Analysis so you will get a current market perspective on the value of your pharmacy. By utilizing our knowledge and experience, you will get to see how a chain buyer, an independent buyer, and a bank will view and value your business.

Preparing for the Sale of your Pharmacy

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If the sale price range is acceptable, we will proceed to the marketing phase. We will compile all your information to professionally and confidentially present to potential buyers. Buyers will not know the name or location of your pharmacy without first signing a non-disclosure agreement (NDA). We will not deal with any buyer without your prior approval.

Finding a Buyer for your Pharmacy

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At Pharmacy Consulting Broker Services, we know that the key to getting the highest price for your pharmacy is to maximize the number of potential buyers while representing your interests. With proprietary marketing techniques, we are able to discreetly seek out, match and qualify buyers for your pharmacy.

Negotiating the Sale of your Pharmacy

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Let the experience of Pharmacy Consulting Broker Services work for you. We are experts at negotiating with both independent buyers and national chain buyers to get you the highest value. We have a national presence, corporate affiliations and experience that give us clout at the negotiating table and help us sell a pharmacy at the highest price possible.

Closing the Sale of your Pharmacy

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Dan will be at your pharmacy to personally oversee the counting of the inventory and ensure the deal closes properly. Dan will also personally assist you in the notification requirements for the DEA and your State Board of Pharmacy.

The Pharmacy Valuation Process

It is essential to know your pharmacy’s value before we speak with potential buyers. When performing a valuation, we take many factors into consideration, including gross sales, adjusted discretionary income, and the value of your assets. After determining the strengths and weaknesses of your pharmacy, we can help you take the necessary steps to improve financial performance and maximize value before setting a price for your pharmacy.

 

Common Misconceptions When Selling an Independent Pharmacy

There are several misconceptions we hear from owners looking to sell about the current market and overall selling process. Trusting these misconceptions can limit your options and increase potential risk. Whether you have questions relating to buyer outreach, local vs national, chains vs independents, or buyer financing, Pharmacy CBS can help you find the answers and debunk any myths. Contact me for more information regarding common misconceptions or contact us to speak with a professional brokerage agent.

 

Why Work with Pharmacy CBS?

Pharmacy Consulting Brokerage Services understands the challenges of selling a pharmacy that you worked hard to maintain. We work for you and you only to ensure your pharmacy is valued fairly and marketed and sold for a premium price that you are satisfied with. Benefits of choosing Pharmacy CBS as your pharmacy brokerage firm include:

  • Proven selling process to secure more offers at a higher selling price
  • Complete confidentiality maintained throughout the entire selling process
  • Receive national, yet confidential exposure through major listing sites and business journals
  • Access to extensive network of buyers ready to invest
  • Personal representation from initial call to final inventory and closing
  • Unmatched combination of knowledge and experience
  • Competitive bidding process involving both chain and independent buyers.
  • Licensed and insured (many pharmacy brokers and consultants are not)
  • Multiple recognitions as a top commercial broker
  • Receive statewide and nationwide marketing and advertising

 

Contact Us Today to Begin Building a Plan to Sell Your Pharmacy

With our extensive network of buyers and a proven selling process that has garnered national recognition, Pharmacy CBS is your trusted source for reliable consulting and brokerage for your pharmacy. We are committed to providing the best service to all of our clients. Contact us today to receive a free consultation or for more information regarding the most effective ways for selling a pharmacy business. From initial consultation all the way through the closing of the sale, Pharmacy CBS will be with you every step of the way.