An Overview of Buying and Selling Pharmacies

December 27, 2021

You may be asking yourself, “How do I sell my pharmacy?”

It can be a daunting task if you’ve never done it before. And that’s why leaning on the expertise of pharmacy business consultants is so essential.

Steps to Sell My Pharmacy

Selling a pharmacy business isn’t like selling a house, and it involves unique complexities that the experts live and breathe.

Here are the five steps in selling a pharmacy.

1. Analysis and Valuation

Ask any military strategist, and they will tell you, the person with the most information wins. It’s no different when you are selling your pharmacy. You need to know more about your pharmacy than they plan to learn. I’m not encouraging deception in any manner; you need to understand what drives your value, what it’s worth before going into “battle” with your potential buyers.

2. Marketing Preparation

Once your valuation and analysis are complete, you need to put all this data and information into a presentable form for your buyers. It’s equally important to select the right buyers, or as we say, put together a “qualified buyers list” or “QBL.” You will also need to have your lawyer prepare a non-disclosure agreement for your buyers to sign.

3. Bid Process

The bid process is a critical moment in the sale process. This is when you “expose” your business to the market. It is going to go under a microscope, and it is advisable to utilize a professional intermediary for this step. Nothing is more personal than selling the business that fed your family, but emotions do not always serve you well while negotiating price and terms.

4. Due Diligence and Definitive Agreements

At this point, you have chosen a buyer, and they need to confirm all you have told and shown them. They will also have to conduct legal and tax due diligence on your company. At the same time, the lawyers busy themselves with the preparation of the definitive agreements. These can be in the form of a share purchase agreement (a “SPA”) or an asset purchase agreement (an “APA”). Site visits usually occur at this stage, but it is advisable to do this after hours and not in the earshot of employees.

5. Closing Procedures

Once the SPA or APA are complete, it’s time to sign! This used to be done on the day of closing (the day the money changes hands), but more commonly, this is done a few months prior. Once signed, the buyer completes their financing arrangements, their due diligence. They get approvals, licenses and secure a banner and supply agreement. This is also the time that conditions start to be removed – which gives you confidence the deal will go through!

Selling an Independent Pharmacy Takes a Team

With a dedicated team of experts, it’s possible to get ahead of the curve and reach more potential buyers that might have interest in your pharmacy.

You can stop googling “how to sell my pharmacy” — The first step is contacting us today. We can’t wait to help you out.