“Cash flow is king.” Everything you have worked for boils down to how much cash flow your pharmacy business generates year-over-year on a predictable basis. A predictable pattern will garner a premium price when selling. It is all about
“risk.” The lower the risk of losing the cash flow in a transfer of ownership, the higher the value to the buyer.
It goes beyond stability of the earnings; however; the cash flow from your pharmacy business needs to be both substantial enough to attract a buyer but proportionately in keeping with industry norms. The absolute value of your cash flow should be over a certain threshold to entice the buyer and allow him to withstand market fluctuations. Your cash flow as a proportion of top-line sales should also be commensurate to your peers.