Chains are experts in devaluation and shifting risk. We know first-hand how chains operate. We also know what chains have paid for pharmacies all across the country and what they should be willing to pay for your pharmacy. We tilt the playing field in your favor by knowing how to play and win their game. By introducing competition in the bidding process, we often see independent buyers make chains pay more or independent buyers outbidding chains.
Do Chain or Independent Buyers Pay More
I often get asked, “who pays more: an independent or a chain?” That depends on several factors. I’ve had it go both ways. Chains will value your pharmacy very differently than an independent, so you really have to look at what valuation method brings the highest price. I often tell potential clients that the value is in the process. Obviously, the more buyers you have, the higher price you’re going to get. You really want to run a tight process, very confidential, and bring in as many qualified buyers as you can to create a competitive tension among multiple buyers in order to drive the value up in a short amount of time. You can then choose the best buyer for your store.
Our Duty is to You
When chains approach independent sellers, their real goal is to get you one-on-one. They want to take you out to dinner, establish a relationship with you, and eliminate competition. Your best interest is not their best interest. My fiduciary duty is to you as a seller. We run a very tight, confidential process. We bring in multiple buyers, get multiple offers, and drive up the price in a short window of time to get you the highest price.
Why to Use a Broker
I’ll often see buyers tell sellers to not use a broker. I give them the example of a divorce attorney. If you and your spouse were getting divorced and your spouse said, “use my attorney because it’ll save us money”, it is not in the best interest of both parties. You need full representation with a broker who’s experienced in pharmacy sales and knows how to run the process effectively. That’s what’s going to drive the highest price.
Understanding Differences in Valuation
If you’re considering selling, you have to realize the differences in valuation and what’s going to get you the highest price. It’s really the process that’s going to bring the value. You want to find the best buyer that’s going to give you the highest price.
Getting the Highest Net Profit
If you’re thinking of selling your pharmacy to either an independent or a chain, I’d encourage you to give me a call. We can go over all the valuation methods used by both types of buyers, figure out what’s going to drive the highest price and bring the highest net profit to you.