May 4, 2021
The next chapter of your life is always the hardest to write, especially when you’re uncertain about what the future holds; this is no different if you’re a pharmacy owner, as you may not be particularly sure what you’ll do when you hang up your smock. You also may be unwilling to part with your business because of community needs, the level of care that may be lost should you sell it, or the inability to find a trusted buyer.
When thinking, ‘How will I sell my pharmacy?’ there are a few avenues to go down that may reduce those fears. Here are four ways to make selling a pharmacy business a more seamless one.
1. Keep It In Your Family
A very convenient thing when available when selling an independent pharmacy is to conduct a generational sale. If your business has been around for a long time and you can see your children or closest family members running, then making a transitional sale like this one will tick all of the boxes.
Generational sales are typically made as share sales. With these sales, the corporation name remains the same, but the shareholders change. The business frame remains the same, and you can feel securer knowing that your pharmacy’s legacy is in the hands of the people you trust the most.
2. Sell To Staff
“I don’t have any family to sell my pharmacy to,” you may be saying. In that case, the next best thing would be selling an independent pharmacy to an employee or colleague who will provide fresh ideas that keep it sustainable and take it to the next level. Your employees already know how your business operates and may already have thoughts on how to build on the foundation you’ve set. Collaborating with them will allow you to pass on your knowledge and work with their ideas to ensure a smooth transition.
3. Selling to a Younger Version of You
Many young buyers are looking for their break despite what people say about the next generation not being interested in entrepreneurship. There are, however, a lot of tire-kickers out there, and that can be an exhausting process. Additionally, it is hard to find those buyers and advertise your sale without inadvertently disclosing it to your patients and staff. Using an intermediary like EVCOR can be instrumental in keeping your sanity and the sale confidential.
4. Selling To a Consolidator or Corporate Pharmacy
Admittedly, sometimes it’s not the most popular option. However, corporates and many consolidators have the necessary funds needed to complete the transaction when you’re selling your independent pharmacy.
These often branded pharmacies that operate multiple locations are always looking for new sites. They may also just want to purchase your files! Selling your files and redirecting your patients to a chain pharmacy may not seem that appealing, but in some instances, it can be the most profitable option. Bear in mind, the due diligence process with these sophisticated buyers can be a daunting task for the ill-prepared.
If you’re looking for help to maintain your independent pharmacy, contact us now to learn more about our services.