Selling Your Pharmacy FAQ
Selling Your Pharmacy Frequently Asked Questions
These are just a few of the many questions posed by pharmacy owners. If you have a question you would like to discuss, call us to confidentially discuss your particular situation, and receive a FREE consultation on the sale of your pharmacy.
Is now the best time to sell my Pharmacy?
The timing of a pharmacy sale based on market trends if very difficult. The value of a particular pharmacy may be very high, or very low depending upon the specifics of the pharmacy in question.
If I keep my pharmacy, won’t I make more money than if I sell?
Pharmacy values often times are based on earnings, which can range from a multiple of 2-6 times EBITDA. The fact is that a pharmacy may always be more valuable to retain than sell, but if your pharmacy is truly “for sale,” then the market will determine your value. Remember to engage PCA to maximize your pharmacy’s value.
How much is my pharmacy worth?
At PCA we are constantly asked by pharmacy owners what their pharmacy is worth. There is no magic formula to determine your pharmacy’s value. PCA will perform an analysis of your pharmacy, taking into account the trade area, prescription mix, profitability, historical data, comparisons to other similar pharmacy selling prices, as well as cash flow, and return on invested and committed capital by a potential buyer.
Is it important to keep my plans confidential?
Having the word get out on the street too early may erode the value of your pharmacy. It is important to keep the potential transaction confidential until a time that PCA and your legal counsel believe it is “safe” to inform employees or customers. PCA enters into Confidentiality Agreements with potential buyers.
Why do I need PCA?
Let’s face it…the potential buyer(s) for your pharmacy may have bought hundreds of pharmacies. The goal of the buyer is to buy your pharmacy and obtain the highest return possible, meaning a low price for you. Chances are you do not have the experience in pharmacy transfer of ownership, and therefore, you can leave significant dollars on the negotiating table.