Are you selling a pharmacy? Are you just beginning to think about the possibility? Even when you are pondering the idea of selling your pharmacy to someone else, it is important to fully understand the pharmacy selling process and exactly what it entails. This way you can minimize the potential surprises and ensure you do everything right on your end—both of these things makes the process quite smooth.
One of the first things you will need during the selling process is to get your pharmacy valuation. This means the potential buyer evaluates your pharmacy based on their own criteria in order to decide if they would like to make an offer, as well as what a fair price for the offer would be.
So what are the types of things that normally go into a pharmacy valuation? Beyond the actual dollar value, other aspects that go into this process include if the seller would like to keep working, if the staff will continue after the change in ownership, and what will happen to the store after the purchase is final. These depend on the specific buyer, though one such as Colony RX will not fire staff, will keep the stores operating as they have been doing, and will leave the decision of whether or not you (the seller) would like to keep working in your hands.
What are some key factors buyers will look at during the pharmacy buying/selling process? Here are 5 of them:
- Is there a loyal client base? What about the staff?
- What is the pharmacy’s reputation in the community?
- What does the competition look like in the area?
- Does the store has sustainable profit margins?
- How many script-writers does the pharmacy have/ Is the store overly dependent on a small number of them?
While there is a lot more to the pharmacy selling process, it is clear you should obtain a pharmacy valuation as one of the first steps, as it will help inform your decision making for the rest of the process.