Steps to Take When Purchasing a Pharmacy

 Posted on September 25,2018 in Medical License Defense

Owning a pharmacy can not only be a rewarding endeavor, but it can also be one that is financially profitable. However, owning a pharmacy can take a lot of hard work, and that work begins with the purchase of the business.

According to industry experts, it is a sellers’ market as prospective pharmacy buyers outnumber sellers by a 2 to 1 ratio. Thus, buyers must act smartly and quickly if they see an opportunity to purchase a pharmacy. This is subject to change over the next few years as most pharmacy owners are over 50 years old and will be retiring in the coming years.

If you are in the market to purchase a pharmacy, consider taking the following steps.

1. Determine what you can afford. High volume pharmacies come at a significant premium because they typically are already generating profits. Lower volume pharmacies are more affordable and may present opportunities for growth. Getting pre-approved by a bank not only will help you focus your search to pharmacies you can afford but also signals to sellers that you are serious about buying.
2. Assess the competition. Keeping in mind that competition includes other nearby pharmacies as well as web-based or mail alternative distribution businesses.
3. Determine areas for growth. Before you decide to buy a pharmacy, you should draft a business plan to understand what potential is present. Keep in mind that if you proceed with the pharmacy purchase, then it may be advisable to wait to implement any changes until after you have observed the pharmacy’s operations for a couple of months to better understand your new business.
4. Look into the financial health of the pharmacy. You should have the pharmacy’s books review by an accountant. A CPA will review tax returns, calculate profit margins, evaluate the seller’s discretionary expenses and inspect the profit-and-loss logs from sales.
5. Retain an Illinois pharmacy sale lawyer. Finally, you should hire qualified counsel to oversee the legal aspects of the sale. Pharmacy sales are complex in nature. First, you have the issues that come up in the changing of ownership in a typical business such as vendor coordination and staffing changes. Second, you have the regulatory issues that must be attended to that come with owning a pharmacy. An attorney can guide you through this process as well as advise you on how to handle the sale.

At The Law Offices of Joseph J. Bogdan, Inc., one of our attorneys also has a pharmaceutical doctorate degree, and he is also an expert witness in various pharmaceutical cases. Our firm is uniquely suited to help you in your pharmacy sale. Call our experienced Illinois pharmacy sale attorney today at 630-310-1267.

Source:

http://www.ncpa.co/pdf/digest/2016/2016-ncpa-digest-spon-cardinal.pdf