Selling a Pharmacy

Selling a Pharmacy  

by Brad MacLiver, Authorship & Profile at Google  

Whether you have made a firm decision to sell your pharmacy, or you are just having one of those days when you are thinking about selling, as a professional we know you want accurate and realistic information to assist your decision making. To provide you your first step in determining whether or not you want to move forward, we offer a free business valuation for pharmacies and drug stores.   pharmacy value worth

When you desire to take the next step, as a national company that works exclusively in the pharmacy industry we have the industry data to support the valuations we present to qualified buyers. From valuing the business to following through to the closing day, we use our expertise to maximize the money you receive.

Guidance is provided throughout the entire pharmacy acquisition to ensure all aspects of transferring the ownership are completed and so you don’t have to figure out the steps on your own.  

Selling a pharmacy is not like selling a house. There are – more regulations, consequences for errors, and lower net amounts received when the transaction is not negotiated or handled properly. Since selling a pharmacy is not part of your day to day activity, will provide you a positive advantage and more money in your pocket when you are ready to sell.  

Sellers will need to consider in their decision making process the higher purchase price is able to receive, the assistance we provide during the many months of work required to complete a pharmacy acquisition, and structuring the transaction to provide the best tax benefit possible. These services can provide a considerably higher amount of cash for the seller.    

The Decision to Sell Your Pharmacy  

Pharmacies all across America are experiencing decreased reimbursements, lower net profits, and declining business values. These factors are driving many pharmacy owners to consider their options. Most people do not like change, so of course making the decision to sell the business can be extremely difficult.  

After years of growing the business, and with it usually being the largest asset for owners and their families, the decision to sell your business will be one of the most important events in your life. understands this and we appreciate the opportunity to work with you and your family in making the correct decision.    

While evaluating the different aspects of selling, please consider the following points:  

1. There are fewer buyers in today’s market resulting in declining purchase prices.  

2. Although sales are increasing, profit margins continue to decrease. Pharmacy owners are working longer hours, and are required to jump through more hurdles to earn the same amount of money.  

3. Due to uncertainties arising from the national debt, you are faced with higher capital gains tax along with other additional tax increases. There could be more coming.  

4. A lack of action that results in not obtaining a financial reward is called an Opportunity Cost. Since purchase prices for pharmacies are declining, other opportunities may offer a higher return if you sell now and pursue new investments.  

5. The Seller has an opportunity of receiving a large sum of money along with a favorable employment contract from the buyer. Employment Contracts can be negotiated that offer a high salary, bonuses, vacation time, vested retirement packages, and don’t include the administrative headaches of ownership. assists in employment contract negotiations without any additional commissions when we are managing the pharmacy acquisition.  

6. You have operated a successful business using your personal business formula. However, selling a business is not part of your day to day activity. Selling pharmacies is the day to day activity of  

7. An error many potential sellers make is not selling when buyers are ready to purchase. The decision to wait may put the deal into a timetable that is less rewarding.  

8. As pharmacies experience decreasing “net” profit margins (even if sales are increasing) and the decision is made to wait a few years before selling, then your calculations (for selling, retiring, etc.) should include a future selling price that is less than today’s.  

9. A large portion of the sell price is not your depreciated assets, or your “at cost” inventory, but rather a portion which can be considered Goodwill. When net profit margins drop, and you have to spend more time working to make the same amount of money, the “Goodwill” will have less value.  

10. Selling a pharmacy is a complicated and regulated process that involves many difficult decisions. Handled properly, it can be very rewarding. However, handled poorly, it can become a laborious and costly chore. provides you expertise and a positive advantage.    

Advantages of Working with  

1. Better Prices – Due to our experience we have both knowledge and leverage in the pharmacy industry that allows to receive a higher purchase price for a pharmacy than someone who is not consistently working in the pharmacy acquisition arena. Even after paying our success fee you will be able to deposit more money into your bank account when we are on your team.  

2. Leverage – Most pharmacy owners will only sell one store in their life time. Our buyers know our experience and that we have been selling pharmacies for many years. They respect our expertise and know that when we are involved in an acquisition, the process will be completed more smoothly, and at reduced out of pocket expenses for the buyer. We also present them transactions that meet their parameters reducing their leg work and up-front costs. When their cost of acquisition is reduced they have more capital available to pay you a higher purchase price.  

3.  Maintaining Sales and Customer Service – Acquisitions are very time consuming and filled with paperwork, headaches, and hurdles. There are requirements from federal regulations, Board of Pharmacy, etc., that must be diligently handled. Most acquisitions take 6-12 months to complete. When is managing the transaction, you do not have to take time away from your day to day functions of operating the business, and miss family gatherings or community events, to accomplish all of these additional required tasks.  

4. Qualified Buyers – We have qualified buyers for every project we undertake. Buyers include equity investment groups, individuals, regional chains, and the major chains. All buyers go through a qualifying process including the initial financing steps before we present your Executive Summary to them. Having qualified buyers means your store does not need to be listed in the local classified ads or posted on the Internet.  

5. Today’s Value – Nationwide, pharmacy values have been dropping and there are fewer buyers in today’s market. Due to this, most pharmacies will never be worth more than they were yesterday. To maximize today’s value a pharmacy needs to have a pharmacy industry expert who has the credentials to support the calculated values.  

6. Experience – It is not likely that a Pharmacy Owner, or a local Business Broker/Real Estate Agent, will have the same acquisition expertise as a company such as who only manages valuations of pharmacies, drug store acquisitions, and pharmacy finance on a daily basis. We will handle your pharmacy transaction with the respect you deserve and maximize the business value for you.

                               The Pharmacy Industry Roll-Up  

Industry Roll-Ups are where an industry’s many players are consolidated into smaller groups for economic benefits. Recessions, new government regulations, or other aspects of the industry that may be stifling profits end up providing incentives to consolidate.  

A principal reason for an industry roll-up is to achieve economies of scale in purchasing, marketing, information systems, logistics, distribution, and top management. Consolidated businesses also have less risk from the impact of an unsatisfied customer and have the reward of being able to recruit, or keep, key employees.   There has been an industry roll-up happening in the pharmacy industry for a number of years. It is a well-established industry and is still experiencing sales growth. However, pharmacies and drug stores have seen a steady decline in their profit margins due mainly to government regulations, even as sales increase.  

During the pharmacy industry roll-up pharmacies with better financial wherewithal are acquiring their local competition and combining two or more stores into a single location. This results in more customer traffic through a single location and reduces the expenses that come with multiple locations. This can dramatically drive up total sales while driving down the administrative and overhead costs per customer.


Often, industry roll-ups are initiated by investors seeking investment opportunities. However, in the case of pharmacies, the roll-up is a necessity due to declining net profit ratios. Companies that are acquired in a roll-up are usually small independently-owned businesses whose owners believe in the economic benefits of combining forces with a larger organization, or simply need an exit strategy. In the pharmacy industry roll-up independents have been a majority of the acquisitions, but there have also been a number of regional drug stores and larger pharmacy chains purchased and consolidated.  

To help fund pharmacy acquisitions during the roll-up, has developed a Small Pharmacy Chain Funding Program that provides funding up to $100 million per transaction. This allows an individual business or an investment group the capital to acquire and combine pharmacies in geographic areas.  

Funders are willing to provide the capital for the pharmacy roll-up because they recognize that combining the individual pharmacy businesses provides a greater total business value than if each individual pharmacy value were added together. This synergistic value reduces the risk of funding the individual acquisition.  

Contact to learn more about selling a pharmacy, buying a pharmacy, the pharmacy industry roll-up, our Small Pharmacy Chain Funding Program, and other pharmacy financing options. Contact Us Today!    



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