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Find information related to selling a pharmacy, buying a drug store, financing a single location or multiple pharmacies, and valuing a pharmacy along with other valuable information that will assist your decision regarding selling, buying, financing, and valuing a pharmacy or drug store.

The entire article can be read by clicking on the link, which will take you to the appropriate web page on the Washburn & Associates web site.

 

Selling a Pharmacy:

Capital Gain Taxes
There are some capital gain tax strategies that must be implemented before any obligation to sell the pharmacy. When you are considering selling your pharmacy either now, or in the next few years, you urgently need to consider the best course of action to minimize the Capital Gain Taxes.

Current Market Conditions
Pharmacy valuations need to be completed by an expert who possesses specialized knowledge and can provide a professional opinion based on experience, industry knowledge, and current market conditions.

Frequently Asked Questions When Considering Selling a Pharmacy
There are always lots of questions a pharmacy owner must consider when deciding to sell a pharmacy here are some of the FAQ’s.

Mergers & Acquisitions in the Pharmacy Industry
There are fewer buyers purchasing pharmacies. Some of the largest pharmacy chains have been purchased and consolidated in the pharmacy industry roll-up. Many smaller chains have run into financial difficulties and have stopped their expansion. Graduating pharmacy students have opted for jobs instead of the headache of ownership. Many independents have seen their own profits decreasing and have been hesitant to buy another pharmacy. It is more difficult for an inexperienced person to drive an acquisition price higher when there are fewer pharmacy buyers ready to complete a pharmacy acquisition.

Pharmacy Industry Roll-up
Industry Roll-Ups are where an industry’s many players are consolidated into smaller groups for economic benefits. Recessions, new government regulations, or other aspects of the industry that may be stifling profits end up providing incentives to consolidate. The pharmacy industry is experiencing a Pharmacy Roll-up.

Purchase and Sale Agreement
Purchase & Sale Agreements are the blueprints for pharmacy transactions and allow both parties to agree on the parameters of the business transfer. However, the seller needs to be aware there are concerns that lie beyond the pharmacy's Purchase & Sale Agreement.

Restrictive Covenants
Restrictive Covenants can benefit or diminish a pharmacy transaction. Learn more about how your transaction can be affected by Restrictive Covenants.

Tax Strategies
When selling a pharmacy or drug store, Washburn & Associates can work with both you and your CPA in developing the strategy that will best suit your transaction, family, taxes, and estate planning issues. Learn how to place more money in your pocket while minimizing taxes with the best Tax Strategies.

Buying a Pharmacy:

 

Buying a Pharmacy
When deciding between completing an acquisition yourself, or to use Washburn & Associates, you will need to weigh several factors including skills, knowledge, and time.

http://www.washburnandassociates.com/BuyAPharmacy.html

Pharmacy Acquisition Finance
When a pharmacy, or drug store, is being sold the buyer seldom pays “out of pocket” cash for the acquisition. With the changing pharmacy industry, and tighter capital markets, make sure both the valuation company and the lender have expertise in pharmacy acquisition finance.

 

Pharmacy Finance:

Acceleration Clauses
There is a provision in many business loan documents that allows a lender to accelerate payments contingent on an event occurring. Learn more about pharmacy acceleration clauses.

Accounts Receivable Finance
When a pharmacy business has a larger portion of prescription sales in Medicare/Medicaid then the cuts in reimbursements, and slower payments, will have a more profound effect on the pharmacy owner’s net profits. Some owners, out of necessity, may require the use of funds from accounts receivable finance.

Asset Based Loans
Asset based loans are any kind of loan secured by an asset and they can assist in seizing a quickly developing market opportunity. Learn more about Asset Based Loans.

Balance Sheet
A Balance Sheet is a summary statement of the pharmacy’s financial position at a given point in time and is used in both the acquisition and finance process. Learn more about Balance Sheet basics.

Pharmacy Business Notes
Washburn & Associates has developed a program where Pharmacy Business Notes can be sold and the transaction can be structured to fit the Note Seller’s needs, with either “Full Liquidation,” or a “Partial Sell.” Learn more about business notes.

Bridge Loans
Sometimes opportunities require action, which is faster than the traditional funding process. In certain circumstances acquisitions of pharmacies, real estate, and assets can be procured using Pharmacy Bridge Loans.

Business Plan
All business loans will begin with the clear communication of the facts, which influence a Funding Source to consider the transaction. This communication comes in the form of a business plan.

Cash Flow Financing & web form
Reimbursements have been reduced and this is negatively impacting the pharmacy owner’s profit. Additional cuts in pharmacy reimbursements are expected. On top of that, some states have become slower in paying the reimbursements. With many states getting into financial difficulties themselves, pharmacy owners will need to plan for the possibility of slower cash flow or even an interruption of the reimbursement payments. Due to this pharmacy owners need to be aware of the availability of Cash Flow Financing.

Discount Rates
When a pharmacy is considering selling a cash flow instrument such as the pharmacy’s receivable, or a pharmacy business note, the price the pharmacy owner receives will reflect a financial incentive for an Investor to accept the risk. This incentive is known as a discount rate.

Financing
Whether you are looking to purchase a pharmacy, or finance an existing location, Washburn & Associates can assist you obtain the financing you need. Learn more about financing pharmacies.

Small Pharmacy Chain Funding Program & web form
Up to $100 Million of funding is available for the development or expansion of a small pharmacy chain. Capturing a geographic pharmacy service area is possible with our Small Pharmacy Chain Funding.

UCC-1 Filings
Lenders secure furniture, inventory, equipment, and other personal property assets using Security Agreements, and by filing Financing Statements with the Secretary of State. The Financing Statement is also known as a UCC-1.

 

Valuations:

Detailed Analysis Business Valuation
An acquisition valuation called "Detailed Analysis" allows Washburn & Associates to evaluate assets, inventory, financial trends, local demographics, strengths and weaknesses of the business, short and long range potential, etc. Click here for more about Detailed Analysis

EBITDA
The EBITDA number for an independent pharmacy is not always an important number. Learn more about pharmacy valuations and EBITDA.

Free Retail Valuation web form
A quick analysis business valuation for a standard retail pharmacy.

Free Specialty Pharmacy Valuation web form
A quick analysis business valuation for a specialty pharmacy.

Using Multiples in Valuation
When considering pharmacy acquisitions, or financing a drug store, the use of simple multipliers to value a pharmacy is the wrong thing to do. Discover the reasons why professional pharmacy valuations don't perform pharmacy business valuations using simple formulas based on multiples.

Consulting:
Washburn & Associates can offer expert consulting assistance to pharmacy owners who may already have a buyer for their store. The acquisition process of transferring a pharmacy can be lengthy and detailed. Find out how you can benefit from professional pharmacy acquisition consulting.

 

Other Helpful Pharmacy Links:

Pharmacy Associations and Boards of Pharmacy
List of Pharmacy Associations and Boards of Pharmacy

Secretary of State
List of the Secretary of State for each state.

Valuation Glossary
When you have questions regarding pharmacy valuation terms and definitions check out the easy reference Valuation Glossary.

Finance & Cash Flow Financing Glossary

Financial term terms and definitions can be found in the Pharmacy Cash Flow Glossary  
    

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