6 Important Considerations when Selling a Pharmacy

July 8, 2021

There are many things to think about when preparing to sell your pharmacy business. It’s essential to clear up any legal and financial issues that may exist before implementing your exit strategy. Here are some things to consider for anyone who has pharmacies for sale.

Statutes

Your business operates according to a range of local, provincial, and federal laws and frameworks. Those with a pharmacy for sale in Edmonton, for example, must be familiar with the laws and regulations of Alberta. Some of these legal requirements have to do with the ownership structure. Be sure you are familiar with these requirements when listing your pharmacy for sale in Alberta.

Contracts

A party often presents contracts with few options for negotiation by the other party. This contract becomes the standard agreement, so if you happen to be that other party, this can leave you at a disadvantage. Adopt an approach of negotiating every contract. This will give you an opportunity for more favorable terms. It will also force you to read each agreement so that you know what’s in it.

Wholesale agreements

In Canada, there are relatively few wholesale suppliers. While it may seem that a pharmacy owner is forced to accept a contract due to a lack of alternatives, this is not necessarily the case. You can negotiate the contract. Be aware of the type of payment security in the contract. Some contracts include personal, as well as corporate, liability. These terms can have a potentially harmful effect on pharmacies for sale. Speak with your attorney for clarification.

Third-Party Payer Agreements

These types of agreements do not have much room for negotiation. Large insurers and government programs often require signing a standard agreement. There are cautions to be aware of – such as audits or a limited right to appeal, although these are not considered reasons to reject the agreement. Be sure to read the agreement. You’ll be glad you did when it comes time to list your pharmacy for sale in Edmonton.

Banner Agreements

The banner agreement can be viewed as the most crucial agreement a pharmacy owner will sign. There are definite benefits, such as access to private labels and point of sale software. There are, however, also drawbacks. These can include high costs, as well as restricting the owner’s autonomy. This can consist of restrictions when it comes time to list your pharmacy for sale in Alberta and who the ultimate buyer might be.

Commercial Leases

The amount you pay for your leased space is often a significant figure that negatively affects a profit and loss statement (or P&L). It is recommended that you negotiate the terms of your lease and involve a lawyer in the process. This way, you will not have any surprises when listing your business amongst other pharmacies for sale.

There are many things to consider when selling your pharmacy business. Be sure you approach the process with a plan to ensure the best price for your business.