The Learning Center

Explore these resources designed to assist you in understanding important aspects of selling and buying a pharmacy.

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Information for Sellers

Common Misconceptions and Myths about Selling a Pharmacy

There Are No Buyers Out There

This myth has been busted time and time again for the last ten years or more. There are buyers for all different types of pharmacies out there, and this is most clearly seen by the wide variety of pharmacies that are already established in the market. Whether your pharmacy is traditional retail, long-term care, compounding, specialty, mail-order, or any combination of these; there are buyers in the market who are qualified to purchase your pharmacy business.

Busted

Selling My Pharmacy Takes Years

In years past, a seller may have been on their own to figure out how to transition out of pharmacy ownership. One of the downsides of having had to work through this process alone was that it may have led to delayed or drawn-out succession plans. The good news is that in today’s market there are more resources dedicated to pharmacies than ever before, which has helped expedite the process of selling a pharmacy. There are now banks, attorneys, accountants, and consultants, among many others, who specialize in pharmacy. This allows a seller to transition out of pharmacy ownership in an efficient manner that maximizes the value from the sale.

Busted

I Will Need To Finance the Transaction for the Buyer

This myth came about because of the historical process for selling a pharmacy. Prior to ten years ago, it was very difficult to find the necessary financing for a buyer to purchase a pharmacy, therefore, sellers would enter into a “Junior Partnership” to slowly transition the pharmacy ownership over time. If a “Junior Partnership” was not the method used for the sale, then the seller most likely was required to finance the acquisition with a seller-promissory note. Fortunately, today's market allows for a seller to receive most, if not all, of their sale price at the time of closing. This allows for a clean separation at the time of the sale from an ownership aspect.

Busted

These Myths Have Been

BUSTED!

The reality is that most pharmacies are owned by pharmacists who have poured their heart and soul into creating a business that has real value. Maximizing that value when you sell is crucial, which is why it’s important to have a trusted adviser working with you to ensure you unwind your ownership in the correct way.

Selling your pharmacy is a process with a lot of moving parts and, unfortunately, many times steps may be missed or wrong steps may be taken, which leads to a seller leaving money on the table.

As the seller, it’s important to understand your role and what will be expected of you throughout the selling process. Knowing how to approach this process will determine how successful the outcome is for you. Every buyer will perform a certain level of due diligence, and you will be expected to act in good faith to provide them with the necessary information. The seller is expected to be transparent with their financial and store information, so that a buyer can make an informed decision of whether or not to pursue the pharmacy for purchase.

Information for Buyers

Buyer Types

First Time Buyer

Do you have a dream of owning your own pharmacy?

You may be someone who has recently graduated from pharmacy school or someone who has worked as a pharmacist for several years now, and has the dream of pharmacy ownership. The biggest challenge that first-time buyers run into is having the necessary cash to purchase a pharmacy. This is where Independent Rx excels given our knowledge and experience working with these types of buyers.

Current Owner

Are you ready to Expand your Pharmacy Ownership?

Multi-store owners are a growing segment within the pharmacy market. Over the last five years, the idea of owning multiple pharmacies has gained traction and the results have shown that it’s a solid business model. Whether you own two pharmacies and are looking for a third, or you own thirty and are looking to grow to forty, there are structures and strategies you can use to leverage your business equity and expand.

Staff Pharmacist

Do you have the opportunity to purchase the pharmacy where you work?

A transition of pharmacy ownership from an owner to an employee makes for an easy transition plan for both the buyer and seller because the buyer is already familiar with the pharmacy, the employees, and, most importantly, the customers. A sale of ownership to an employee can also eliminate what sometimes ends up being a lengthy search process for a buyer. Independent Rx can bring great value to a scenario like this because we are able to work with both the buyer and the seller to facilitate the transfer of ownership in a timely and efficient manner.

Business Investor

Looking to Invest in Pharmacy?

There are many opportunities in the pharmacy market that may fit the criteria you are looking for in a business acquisition. Independent Rx can assist in educating you about the pharmacy industry, so that you can quickly narrow down your search for a store and save time, energy, and money. We may also help you avoid purchasing a pharmacy that isn’t the right investment for you and your partners.