April 21, 2021
Anyone who has ever said, “it’s time to sell my pharmacy,” and followed through with the process knows it’s a complex process with many details that need attention. To complicate matters, selling a pharmacy business is different from selling other types of businesses because of pharmacy businesses’ regulatory requirements. For this reason, many choose to sell their business through an experienced broker familiar with pharmacy business sales.
In many ways, a pharmacy business sale is similar to selling other small businesses. After telling yourself, “I am going to sell my pharmacy,” you will need to determine whether you’re selling stock or assets, how the business will be transferred to the new owner, as well as the structure of the company.
Once the decision to sell has been made, determine when you would like to be free of the business. In other words, decide on an exit date. Next month is too soon, but this time next year, or in other words 12 months, is a reasonable timeline. Once a sell-by date has been decided on, it’s time to get to work preparing the business for sale.
To keep the process running smoothly, aim to complete each required step, such as submitting documents, as quickly as possible while still taking the time required to be thorough. When selling your business, delays can add up, which could lead to you not meeting your exit date timeline.
It is possible to sell a pharmacy business yourself, but many people choose to use the services of a broker. Going this route helps to ensure you don’t miss a crucial step and that you have done everything necessary for a successful sale of your business.
Whether you use a broker or negotiate the sale yourself, you will have to answer several questions. For example, are you looking to ensure your pharmacy remains an independent business, or are you willing to consider selling the business to a larger company with several locations or chain pharmacies?
Regardless of the entity, you choose to sell to, or whether or not you will engage the services of a broker, be prepared to spend a good amount of time on matters related to the sale, such as gathering documents, preparing financial information, negotiating terms with the buyer, and other duties essential to a successful sale.
When looking for a broker, inquire about their experience selling pharmacies to get a sense of whether or not the broker is the right fit for you. An experienced broker will help you to avoid any missteps you may make were you to attempt to sell your pharmacy on your own.