September 10, 2021
Have you asked yourself, “How can I sell my pharmacy?” Here are five questions every independent owner should ask before selling their pharmacy.
If you plan to sell your pharmacy, the process should ideally begin two years before the actual transaction. You should start planning for the sale of your pharmacy by creating a business plan to support growth objectives, developing succession strategies, evaluating financing options, and preparing financial projections along with reporting systems that would provide you with up-to-date financial information to share with interested buyers. Additionally, it would help if you left enough “runway” for tax planning, hence the two your ideal window.
You can make your pharmacy more attractive to potential buyers by upgrading your systems and processes, optimizing working capital, boosting revenue through improved space planning and merchandising, utilizing new technologies, and other customer service enhancements.
Other attractive features of a pharmacy include trained staff, optimum operating hours, and pharmacist accessibility. Beware, however, just like renovating your home in order to sell it, where you spend the money is essential – depending on your sale “window,” the ROI may not be there.
Five factors that may influence the value of your business:
If this is your first time selling, it can be challenging to determine what kind of buyer will want your business. The best way to get an idea about their background and motives is through networking, asking other pharmacists you know who have sold their businesses in the past for advice, or more importantly by contacting a business broker to help you.
Legacy is important for many pharmacy owners, and some are willing to forego the highest price to ensure what they have built will not be destroyed.
In order to achieve a smooth and effective transition, it is important to change ownership in a way that will benefit your business and the future owner. Choosing a professional transition advisor ensures that you can be confident in knowing exactly what this process looks like whether it’s an outright sale, partnership agreement, or management buyout.
If you do not receive any offers for your pharmacy after six months of marketing efforts, consider other transfer options, such as an in-house sale or a management agreement. It might take a bit of time to get your pharmacy sold, but it is better to sell a pharmacy to someone that will be a good fit.
To learn more about selling a pharmacy business, contact EVCOR.