Trying to decide whether or not to sell your Pharmacy and where to begin is a stressful process. Our Pharmacy brokerage experts can help you make the right decision.
Why Choose PRS Help You Sell Your Pharmacy?
Selling your Pharmacy is the culmination of a lifetime of hard work and your legacy does not belong in the hands of amateurs. If you wish to discuss your options with experienced, professional Pharmacy brokerage and valuation experts, please reach out to the Pharmacy brokerage and valuation specialists at PRS Pharmacy Services.
Our staff of brokerage and valuation specialists consists of registered Pharmacists, Pharmacy owners and support staff (most of which have worked in a Pharmacy) that know how to value and sell a Pharmacy. If you decide to have us sell your Pharmacy, we will assign one of our licensed Pharmacists with at least 20 years of experience in selling and opening retail Pharmacies to be your Project Manager. The Pharmacist Project Manager, along with our skilled support staff, will work with you every step of the way to take the stress out of, what can be, a very stressful process.
Contact us today for a FREE Confidential Initial Consultation!
PRS is a Different Kind of Broker…
PRS is the ONLY Pharmacy ownership and brokerage consultant endorsed by NCPA, the Federation of Pharmacy Networks and over twenty Buying Groups representing more than 15,000 independent Pharmacies. Why? Unlike some companies that claim to be valuation and brokerage experts, we actually are, and our vast experience in a variety of unique situations make us the BRAND NAME 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.
Here are some of the most Frequently Asked Questions by Pharmacy owners thinking about selling a 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 a nationally recognized Pharmacy valuation expert. Using his formulas combined with our vast experience in independent Pharmacy, 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.
Check out our blog on what not to do when valuing your Pharmacy for more information.
Plan on six months at a minimum to sell a Pharmacy. Anything less is dreaming and wishing. 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 that timeline 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 buying, selling, owning, 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 your Project Manager. Each of our experts has at least 20 years of experience selling and opening retail Pharmacies. If you are talking to a broker who claims to be an expert in Pharmacy brokerage and valuations and he/she has not worked in or owned a Pharmacy and does not have Pharmacists doing the valuations and brokerage…get a second opinion.
Overview of PRS’s Pharmacy Valuation, Brokerage and Transfer Services:
The STEPS in the PRS SELLING PROCESS:
- Detailed Pharmacy Valuation.
- During the valuation, we take the time to learn as much as possible about your Pharmacy and location then prepare your listing complete with a detailed Pharmacy acquisition review, custom marketing pieces, and advertising.
- We then begin to market your Pharmacy business, find pre-qualify buyers, answer any questions potential buyers might have, and negotiate on your behalf.
- Confidentiality Agreements signed with any potential buyers.
- All offers are presented to you so you can review them.
- We make certain you are completely satisfied with an offer before we move forward.
- Preparation of the Purchase Agreement.
- Work with the buyer during the loan process to ensure they have everything the lending institution requires to acquire financing.
- Acquire remaining documentation for Purchase Agreement and work towards the closing.
- Closing and Transfer of Ownership.
- Ensure proper closeout of seller’s licenses and registrations.
OUR SELLING PROCESS MAKES US UNIQUE…
The first step in the selling process is accurately determining the value of your Pharmacy. A Pharmacy Valuation from PRS will combine all of your Pharmacy’s financial data with our proprietary processes and industry-specific algorithms to provide an accurate valuation range. We use this comprehensive valuation report to jump-start the selling process.
Additionally, Pharmacy 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.
Our experts are here to answer any questions you might have about valuations and where to begin.
*Already had a valuation done? No problem. We can review it to ensure its accuracy.
The Selling Process
PRS’s Brokerage Services match the interest of potential buyers to sellers using a custom, focused marketing plan in addition to utilizing our extensive data-base of qualified buyers.
We take the time to learn as much as possible about your Pharmacy and location. Then we prepare a “Seller Marketing Plan” with customized marketing pieces that profile the highlights of your Pharmacy. We focus on community location, quality of life and basic financial data. The design of the marketing pieces is to entice potential buyers to inquire about your Pharmacy.
We prepare a more detailed marketing and financial package for those buyers who make it through the initial screening and have been pre-qualified using very strict guidelines. Thus, this information is going only to legitimate buyers with the verified finances to buy the Pharmacy.
Confidentiality is Our Priority
We NEVER share your desire to sell with anyone without your permission. And, yes, that includes your wholesaler and buying group. Any interested potential buyers will be required to sign a Non-Disclosure Agreement prior to receiving any specific information about your Pharmacy.
The Closing and Transfer
Once we have a buyer for your Pharmacy, we work with both you and the buyer right up through the closing of the deal. PRS advises Pharmacy sellers and their representatives how to transition smoothly to the new owner. We are more than just your typical “Pharmacy Brokers.” We are Pharmacists, Pharmacy Owners and Independent Pharmacy experts.
Perhaps you have a buyer already and just need assistance on the Pharmacy Ownership Transfer. These services are available separately for either a buyer or seller.
Think you might be ready to sell your Pharmacy or maybe you just want to talk to us about all your options and get an expert second opinion?
Fill out the form below and one of our valuation and brokerage specialists will reach out to you. There is never any pressure or obligation and we are happy to do a free consultation with you anytime!