Frequently Asked Questions

General

PRS is an Independent Pharmacy Consulting Company that has 3 main segments:

1) Pharmacy Compliance ~ trainings and policies and procedures for Pharmacy regulatory compliance in areas such as HIPAA, Fraud, Waste & Abuse, OSHA, Exclusion Checks and more.

2) Pharmacy Ownership ~ this includes start-ups, Pharmacy TransfersBrokerage Services, Feasibility Studies and more.

3) Pharmacy Operations ~ this includes our product RX Check-Up which takes a deep dive into your entire Pharmacy operations to find and help you fix issues.

We also have PA Exclusive Pharmacy Staffing Services, International Pharmacy Services and more.

We work with all of them. Using PRS’ services isn’t contingent on using any particular vendor.  View our list of partners and affiliations.

Ownership and Brokerage

It depends. Typically most lending institutions require a loan for $450,000 which covers the initial start-up costs such as build out, furniture, fixtures, equipment and working capital until the Pharmacy generates a positive cash flow.  The cost can depend on whether you are starting from scratch or buying an existing established Pharmacy.  There are many different options.  PRS can help you determine which one is right for you.

There are many factors that determine what a Pharmacy is worth.  A Pharmacy Valuation can help determine the fair market value of your Pharmacy so you get what your Pharmacy is worth when selling or if you are buying you know you are making a good financial decision.

The best place to begin is by having a Pharmacy Valuation done to find out the value of your store and to know what you can expect from the market.  Once this is complete, PRS can help you find the right buyer.  We have qualified buyers in all 50 states and D.C.

We PROMISE 100% confidentiality and will never share your information with anyone.  You can view our signed Non-Disclosure Agreement (NDA) here.

The answer to this depends on many factors, some of which can be subjective.  If you purchase an existing store, the up front costs will be more, but as long as you had a proper valuation done you will have revenue coming in the day you take over the new store.  When you open a Pharmacy from scratch you may have less costs, but it could take 1-2 years for you to start to operate in the black.  PRS can help you determine what is best for your particular situation.

The licensing and subsequent third-party enrollments vary per state. Typically you would need to allow 14 weeks following your Pharmacy inspection until you were fully operational. View some of the ownership programs PRS offers to assist you with your start-up.

The first thing you need to do is have a Pharmacy Valuation performed to determine if the asking price is fair.  Second partner with professionals that have experience in due diligence, licensing, third-party contracting, letter of intent (LOI), purchase agreements and Pharmacy operations to help ensure a smooth transition.

We PROMISE 100% confidentiality and will never share your information with anyone.  You can view our signed Non-Disclosure Agreement (NDA) here.

PRS can conduct a site feasibility study to help you determine if your proposed location is a good choice.  Our proprietary site feasibility software will generate a 2 year pro forma by looking at demographic data, traffic patterns and other information to determine the likelihood of a new Pharmacy being successful at a given location.

At PRS we pride ourselves on being a different kind of Pharmacy brokerage service.  We are the only brokerage firm endorsed by NCPA.  We cover everything from buying, selling, transferring, opening a start-up and opening an International Pharmacy. We have programs for every situation and we are owned and operated by Pharmacists so we understand what it takes to succeed and the challenges most owners or potential owners are facing in today’s competitive market.

We PROMISE 100% confidentiality and will never share your information with anyone.  You can view our signed Non-Disclosure Agreement (NDA) here.

In a stock purchase the buyer purchases the seller’s share of the corporation’s stock directly, therefore obtaining ownership of the seller’s corporation.  The Pharmacy operation remains with the same corporation and FEIN.

In an asset purchase, the seller retains possession of the corporation or LLC and the buyer’s corporation purchases individual assets of the company such as Rx files, equipment, inventory and goodwill.

For a more thorough breakdown, please schedule a consultation with one of our experts.

One of the biggest misconceptions is that a buyer does not have to address licensing and third-party contracting during a stock purchase.  Each state Board of Pharmacy determines the definition of “Change of Ownership” differently. In addition, “Change of Ownership” notifications may need to be filed with all appropriate government licensing boards and PBM’s.  The complicated rules and laws involving buying, selling, owning, or transferring a Pharmacy are why you should always hire a reputable company to guide you through the process.  PRS is the exclusive NCPA endorsed broker.

Selling Your Pharmacy

Wholesalers are interested in keeping the wholesale business, period. Getting you the best deal is not a priority for them. The wholesaler valuations we have seen are usually on the low side so the pharmacy sells faster. Wholesalers typically only present to the seller potential buyers that currently have an account with that particular wholesaler eliminating about 75% of the potential buyers.

We share your information with no one without a signed Non-Disclosure Agreement. Even then, we have a process a buyer must go through to receive certain financial information and PRS will disqualify them as a buyer if they do not meet our strict criteria. Only serious, qualified buyers will see your information. You can view our signed Non-Disclosure Agreement (NDA) here.

Absolutely. The first step in the selling process is accurately determining the value of the pharmacy. Additionally, valuations assist with estate planning, discovering where you can improve profitability and justifying the selling price to a buyer. A Valuation takes the Purchase Price from a level of personal opinion to rational analysis.

PRS’s valuation process was designed and perfected over 30 years by a PhD who is the nationally recognized pharmacy valuation expert. Combined with our vast experience, we will accurately determine the fair market value of your pharmacy. PRS’s valuations are so detailed and precise; buyers are able to use them when acquiring financing.

Plan on six months at a minimum. Anything less is dreaming. The most time-consuming items are acquiring the financing, especially an SBA loan, and the speed at which the attorneys and accountants prepare, review and send vital documents such as purchase agreements and financial records. If your financial records are not up to par, you should begin working on them immediately. You will need to continue to prepare updated statements throughout the process as the bank will keep requesting the latest financials as they do their due diligence in the lending process.

Here is a quick look at the selling timeline to show why it takes time:

  • Valuation Process: 2-4 weeks
  • Gather documents and prepare initial buyer marketing plan: 2-4 weeks
  • Begin soliciting and screening buyers: 2-8 weeks
  • Schedule store visits for qualified buyers: 2-4 weeks
  • Ask for and review Letters of Intent from interested buyers: 2-4 weeks
  • Accept a buyer offer and they begin due diligence process: 6-8 weeks
  • Once offer validated by buyer, prepare and negotiate Purchase Agreement: 2-6 weeks
  • Sign purchase agreement and begin final stages of acquiring funding: 4-12 weeks
  • Loan approved, schedule and conduct closing: 4 weeks
  • Sale complete

As you can see, three months is not realistic and certainly came from an inexperienced broker.

If your pharmacy is profitable and capable of attracting financing for the buyer, the best option is to find a private buyer. However, do not be surprised if your broker tries to sell to a chain. It is easy quick money for them but not usually the best thing for you. There are many downsides. For most sellers, this should be a last resort. For more information, see our blog: Selling to a Chain is the Easy way to Big Bucks, Right. Not so Fast!

Most loans are via the SBA, which requires buyers to come up with 10% of the purchase price with at least 5% in funds coming directly from them. The other 5% can be provided by the buyer, financed by the seller, or financed elsewhere.  Even though there are buyers with lots of cash, realistically most buyers do not want to put down more than 5% so you can expect a request to owner finance. Most sellers we work with agree to the financing of 5% and we rarely recommend going higher. That said, owner financing is not a requirement and your sole decision.

In a stock purchase, the buyer purchases the seller’s shares of the corporation’s stock, thereby obtaining ownership of the seller’s corporation.  The Pharmacy operation keeps the same corporation entity and FEIN.

In an asset purchase, the seller retains possession of the corporation and the buyer’s corporation purchases individual assets of the company such as Rx files, equipment, fixtures, inventory and goodwill.

For a more thorough breakdown, please schedule a consultation with one of our experts

One of the biggest misconceptions is that a buyer does not have to address licensing and third party contracting during a stock purchase.  Each state Board of Pharmacy determines the definition of “Change of Ownership” differently. “Change of Ownership” notifications may need to be filed with appropriate government licensing boards and PBM’s.  The complicated rules and laws involving buyingsellingowning, or transferring a Pharmacy are why you should always hire a reputable company with the experience to guide you through the process.  PRS has extensive experience with ownership transfers and is the exclusive NCPA endorsed pharmacy broker.

PRS is the ONLY pharmacy broker endorsed by the National Community Pharmacists Association (NCPA), the Federation of Pharmacy Networks (FPN) and over twenty-five Buying Groups, representing more than 15,000 independent pharmacies. Why? Unlike some companies that claim to be experts, we actually are. Over the last 30+ years, PRS has accumulated vast experience in a variety of unique situations making us the NAME BRAND in pharmacy consulting, compliance and brokerage. To date, PRS has sold, transferred, or opened over 500 independent pharmacies and has worked in all 50 states. We are fully insured, licensed and accredited. We invite you to compare us to our competition and see for yourself.

PRS will assign one of our licensed retail Pharmacists as your Project Manager. Each of our experts has at least 20 years of experience selling and opening retail pharmacies.  

Compliance and Credentialing

No.  As long as you can access them if asked for during an audit, then it does not matter if they are printed or electronic copies.

For more details on your compliance manual and other compliance questions, please reach out to our compliance specialists.

If you need additional compliance products, please visit our compliance page.

There is no fine print.  Our guarantee is simple.  If you are using ComplianceTrack properly and you are audited and fined…WE WILL PAY THE FINE.  No clauses. No fine print. No kidding.

No.  Many of our Pharmacy Compliance products are available`a la carte.   However, in many cases if you need multiple products it is cheaper to purchase the entire suite depending on which products you need.   Check with our compliance specialists for more details on your specific needs.

Pharmacy Operations

Well, you are in the right place.  PRS’s RX Check-Up will look at your entire Pharmacy operation to identify profitability issues and provide recommendations to help your entire Pharmacy run more efficiently.  We look at everything from P&L statements, personnel utilization, vendor agreements, payer reimbursements, inventory control and more.  Contact us today.  Waiting is costing you money.

PRS can do a bumper to bumper check-up of your current Pharmacy operations to determine if your Pharmacy is running as profitably and efficiently as possible.  Our Rx Check-Up product is exactly what you need.

DMEPOS Accreditation

Most suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) must file a $50,000 surety bond before they can bill medicare.  Because DMEPOS bonds are required by CMS, they are also known as “Medicare Bonds” or “Medicaid Bonds”.

If you have additional questions, please contact us now.

Contact Us

P.O. BOX 852
201 Depot Street, Suite 200
Latrobe, PA 15650

Phone: 800-338-3688
Fax: 724-539-1388

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