Buying a Pharmacy

Acquiring a pharmacy can be a trying experience. Between financing, licensing, third party contracting, supplier agreements, and the overall buying process, and new pharmacy owner can easily become overwhelmed. As a buyer, the “best deal” is always the goal. Unfortunately, many independent buyers significantly undervalue a potential acquisition only to see another buyer, such as a chain pharmacy, buy the pharmacy or the pharmacy owner may decide to continue ownership. When this happens a great opportunity could be lost. Understanding the importance of fair market value is a crucial step within the buying process. Our consultants will work with you so that you can feel confident throughout the entire buying process and make your next pharmacy purchase a success.

Market Valuation: One of the most important steps in buying a pharmacy is obtaining a fair and unbiased market value. At PCA, we provide market valuations and assessments for the independent buyer, and can assist in negotiating a price with the seller. Our expertise in the business of independent pharmacy can work to your advantage as a buyer.

Due Diligence: At Pharmacy Consulting Associates we can assist buyers in the due diligence process and we urge you to take advantage of our diverse experience in the independent pharmacy buy-sell process. We have created refined document requests and due diligence summaries that you can apply to your potential acquisition.

Cash Flow Analysis: With respect to cash flow, the independent pharmacy business is complex. Since 2001, PCA has been evaluating cash flow metrics in the independent pharmacy marketplace, developing consulting practices to assist pharmacy owners in maintaining cash flow while growing their businesses’ value. As a buyer, you need to understand the difference between earnings, profit, and cash flow. Being prepared with working capital requirements is paramount for today’s pharmacy owner.

Financing Options: We have researched the marketplace and discovered lenders who are “pharmacy friendly.” Our preferred lenders have experience, understand the business of independent pharmacy, and provide collateral associated with pharmacy inventory, receivables, and file value.