Locating a Pharmacy to Purchase
When looking to buy any real estate or business, the most important thing is Location. This very definitely applies to buying a pharmacy. But what is a “good” location? Tap into Aventine Group’s extensive experience for the answer to this. Contact us and take a look at our listings to see if anything appeals to you. Our industry-specific methodology allows us to make the perfect match between buyers and sellers. By focusing on the interests and goals of both parties, we maximize the value proposition for both the buyer and the seller.
The first step your Aventine advisor will discuss with you is the non-business aspects of yourself, your (family) situation and your lifestyle needs. Owning a community pharmacy works best if you are part of the community served by that pharmacy. Word-of-mouth advertising through church or school and the local sports club can do wonders for your business, as can sponsorship of local events. These demonstrate your commitment to the community, something the corporate chains are hard-pressed to match. You’ll want to live relatively close to the pharmacy for practical reasons (like commuting time). So decide if you want to live in an urban or rural area, or at what level in-between. Some of the most successful independent pharmacies can be found in rural and semi-rural areas, which might not be the first place you’ll look, unless you came from such an area yourself. (Independent pharmacies represent 38% of all retail pharmacies, but represent 52% of all rural retail pharmacies. Over 1,800 independent pharmacies are the only retail pharmacy within their rural community). Perhaps you prefer the suburbs, with schools and other amenities. This choice can limit the acquisition options available to you, but is essential to your own happiness.
Now that you’ve determined the general type of area, take a look at some specific locations. It can be assessed according to this list of factors:
- How big is the market and what are the demographics? This information is readily available from the local Chamber of Commerce, utility companies or the Internet, sometimes for a small fee. Aventine Group supports existing and prospective owners by determining market size and value, etc.
- Are there many prescribers (doctors, dentists, etc) in the area? We will also count other healthcare providers (hospitals, nursing homes, retirement villages etc.) all of which contribute to the viability of a trading area.
- Who are the competition and how tough are they? A single well-run independent can be more of a threat than several chain stores.
- How easy is it to reach the pharmacy? In an urban area, visibility and passing foot traffic are important. In suburban and rural areas, we look for other retail services close by to help draw traffic, and easy parking and access.
Your next step is to identify a pharmacy that might be for sale. Ask Aventine Group! Being a specialist pharmacy brokerage, we are more likely to have the pharmacy you want and the expertise to guide you through the specific details of buying a pharmacy than some generic business broker.
Half the owners of the 23,000 independent pharmacies in the United States today are over the age of 50. This means there are many opportunities out there for younger pharmacists who want to own their own pharmacy. It can be a frustrating process, "wasting" time to chase after deals that don't happen. Unless you are handed an opportunity (by a current employer), there is no way around it. Same as buying a house, there needs to be a certain "click". It takes time and patience, but it is worth it!