Market Analysis & Valuation
Pharmacy Market Analysis & Valuation Services
The most important step a pharmacy owner can take, in improving the chances of a successful transfer of ownership, is to understand the true market value of the pharmacy. When we have a product to sell and we do not understand the market value of the product, it is often very difficult to plan an effective strategy.
At PCA we provide pharmacy owners three levels of valuations:
Letter of Opinion: Provides the pharmacy owner with a fair market value of the pharmacy practice. The documents necessary in the review process are comprehensively examined and identified in the valuation. The subject pharmacy is compared to recent sales of similar operations. These valuations are applicable to pharmacy owners needing the fair market value to determine a selling price or evaluate an offer from a potential buyer. The format is typically a two page letter presented in a formal format for future dissemination to a potential buyer, at the pharmacy owner’s discretion.
Comprehensive Market Analysis and Valuation: In addition to the letter of opinion, several valuation metrics, and comparables are analyzed. The subject pharmacy’s operation is compared to other pharmacies and the community pharmacy market, or specialty market (if applicable), and various operation traits within the subject pharmacy are evaluated and applied to increases or declines in the fair market value. In addition, the earning potential and cash flow of the subject pharmacy is analyzed. A demographic review, operational review, comparative analysis, spreadsheets, and discussion are presented to the pharmacy owner. The format is a bound formal presentation. This valuation is typically needed for corporate, legal, and bank financing needs.
Comprehensive Market Analysis and Valuation with Proforma Cash Flow Database: In addition to the Comprehensive Market Analysis and Valuation, this product incorporates projections related to sales, profitability, and expenses. Three to Five year projections are included. This valuation is typically needed for Junior Partnership programs. The importance of this valuation in a Junior Partnership is creating projections of future ownership shares as related to infused capital.