Finding a Buyer When Selling a Pharmacy Business
Once you've decided to sell your pharmacy, the biggest question is how to attract a buyer's interest, and how do you convert that interest into a sale at the best price? The key to this is preparation. You deserve top money for all the long hours you've put into your pharmacy, but selling their pharmacy is a once-in-a-lifetime deal for most independent pharmacists. Where to start and what to do?
This is where Aventine Group can put two decades of pharmacy brokerage experience to work for you:
- We will start by doing a full valuation of your pharmacy. What are the strengths and weaknesses? We will check all the details with you, like your lease, any verbal agreements or other idiosyncrasies, supplier and customer contracts, assets, etc.
- If applicable, we will suggest improvements which will increase the value of your pharmacy. It could be as simple as tidying up the appearance of your shop, or implementing new patient care services. Definitely get rid of unproductive assets and front end inventory which is not moving. This is a process that can take at least a year, preferably three to five years, so start the process well in advance.
- Aventine Group keeps abreast of new developments in pharmacy regulations and tax rates, etc. Our database on the pharmacy industry shows trends on how these things influence the timing for selling your pharmacy. We will discuss the implications with you and advise you accordingly. Use our expertise to improve and document the daily procedures so that a buyer can step in and take over a turn-key operation. Define each employee's role and their designated tasks which lead to measurable desired outcomes.
- If you can make yourself redundant, that makes the eventual handover so much easier. Easier for the buyer, but also easier on yourself emotionally and otherwise.
- Your accountant and attorney should be involved every step of the way and we will work with them to maximize profit and minimize cost. This also applies to the decision on how to invest the proceeds from the sale of your pharmacy. Your preferred investment option could determine how the sale should be structured. We will work with your professionals to settle any legal problems, re-evaluate reporting methods for depreciation, and anything else which will make your pharmacy more attractive to buyers.
- Aventine Group has a list of qualified buyers waiting for new pharmacies to be listed. Your personal agent will connect you to any relevant buyers already on our lists, as well as research the marketplace to find other potentially interested buyers. Your role in this is not unimportant as whispering a confidential word to a trusted wholesaler might bring leads. Or browse through Pharmacy Wanted ads on a pharmacy school or association's matching services website. Perhaps there is a family member or an employee interested?
- Buyers love the complete information package we prepare on your pharmacy. This selling memorandum emphasizes the present, past and future potential of your pharmacy. It starts with your reason for selling, and goes on to list the salient points of: history, organizational structure, operational details,customer base, asking price and valuation method. Financial statements for the past three years and the forecasted cash flow for the coming three years are cleaned of irrelevant expenses and appended. Please note - we will never share such specific information about your pharmacy without first signing a Confidentiality and Non-Disclosure Agreement with a prospective buyer! When a buyer shows more interest, we will obtain a LOI (Letter of Intent to Purchase). This non-binding agreement outlines their background and reason for wanting to buy your pharmacy. In turn, it allows the prospective buyer to do whatever research is necessary for due diligence. While they investigate you, we investigate them, if they have not already been qualified. We qualify buyers by checking on their capital base, liquidity and potential to go public, amongst other factors which could influence the value of the deal. You could visit their current operations and interview some key personnel there, especially if you are considering a type of deal that includes your services in future. The first interested buyer might not be the best one to continue with your hard-earned reputation so we will help you screen the buyers as much as they screen you. At Aventine Group, we have pharmacy brokerage specialists in the art of negotiation who will take your place at the table, after long conversations with you to make sure we understand your needs. Since we are professionally not emotionally involved, we can focus on getting you the best price. Our vast experience in the pharmaceutical industry gives us more leverage to negotiate the most advantageous terms for you. This also applies should we identify the need for negotiations with any creditors, tax authorities, landlord, etc. We are there to represent your interests, to achieve your goals and parameters. This can only be done with the necessary feedback to you - we'll keep you updated and involved.
- After the deal has been closed, we will review all transaction documents, help choose a favorable closing date, deal with any outstanding issues and ensure that the transaction complies with all relevant rules and regulations. This is all part of our standard service, to make sure every point is covered.
- At your closing, we will be there to celebrate a smooth, successful sale with you!
Aventine Group will support you from start to finish, providing assistance with every part of the process of selling your pharmacy business in New York, New Jersey, Connecticut, Pennsylvania, Florida, California or anywhere in the US. With our expertise and network, we can get you a higher price than you could without our backing. Let us sell your pharmacy for you, while you do what you do best as managing your pharmacy efficiently. Please ask to see references from satisfied clients as we look forward to adding yours to our list.