QUESTIONS SELLERS ASK
The following are some of the most common topics and questions frequently brought up by sellers.
If you have any questions that we have not covered please don’t hesitate to contact us.
On average it takes between six to nine months to complete the sale. Some pharmacies will sell in as little as two months, while others can take up to a year or more. No two pharmacies are alike and StillwellRx always ensures that we are matching the right buyer with the right pharmacy. Not only must your pharmacy be just right but it also needs to be the right price, and the terms must also fit into the buyer’s ability.
You need to be 100% comfortable with the idea of selling your pharmacy. Do not sell your pharmacy because competition moved in close by, or because of insurance reimbursement concerns. And do not trust that “great deal” that comes along. Only sell because you are truly ready or recently had a life changing event in the family, such as divorce, death, or disability which is causing you to need to sell.
1-2 years is great benchmark to start to plan for the sale of your pharmacy. During this time we highly encourage you to engage StillwellRx. We will ensure that you always have a non-bias expert in your corner throughout the process. We will help you understand the value of your pharmacy and identify all potential buyers. It is also important that during this time you seek expert advice from your legal counsel and accountant as well.
A pharmacy is only worth what the market will pay. This will be dependent upon a number of factors
How much are the assets of the pharmacy worth?
How much positive cash flow does the pharmacy generate?
How stable is the goodwill of the pharmacy?
What opportunities are there to expand the pharmacy’s client base?
How stable is the workforce?
Does the pharmacy have security of premises?
Who is the potential buyer?
What competition is nearby?
How dependent is the goodwill upon the current owner?
In summary, valuing a pharmacy is multi-faceted, and no set formula works for all.
The main reason is due to our connections/relationships that we have spent many years building. We have hundreds of qualified buyers that we work with and have built trusting relationships with. Because of this, you benefit. We will get more for your pharmacy because we know what makes the buyers tick. Knowing how to interact with them, what they are looking for, and how many stores we have sold to them in the past are huge factors in our ability to negotiate on your behalf. And win.
Not being open to selling to a chain will narrow the buyer possibilities but that’s OK! We have a large pool of qualified independent buyers that will keep your pharmacy open and your patients served. Just let us know what your sale restrictions are.
A buyer will want up-to-date financial information. If you use accountants, you can work with them on making current information available. If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is an alcohol or other license involved that might delay things, you don’t want to wait until the attorney can make the time to prepare the documents or attend the closing. Time is of the essence in any business sale transaction. The failure to close on schedule permits the buyer to reconsider or make changes in the original proposal.
A buyer will want up-to-date reports (financial and script related). If you use an accountant, you can work with them to make sure that all financials are current and available.
Maintain the status quo. Ensure that employees feel secure and don’t contemplate leaving. Ensure that your patients know that service and quality are maintained. We want to make sure that we are able to get you the best price possible for your pharmacy and that means that your business has to continue to function as usual.
It is always recommended to operate the pharmacy with a “business as usual” mindset until the sale is final. Any loss in script count or wages can cause concern to a potential buyer and may change the value of the pharmacy overall. We understand that it can be difficult to operate with this “secret” but it is important to do so in order to ensure that you are pleased with the outcome of the sale.
It is always strongly advised that both the buyer and the seller make use of appropriate professionals.
Absolutely! We have a growing database of both chain and independent buyers looking to purchase pharmacies in all 50 states. We screen all buyers and have them complete a buyer questionnaire. Our goal is to make a perfect match!
I have chain representatives and my wholesaler contact me regularly. They say that they will process the sale for free if I sell to them. Why should I use and pay StillwellRx?
We are non-bias and will be in your corner, making sure you are paid for what your pharmacy is truly worth and not what they want to give you. These numbers can be very different and we help to bridge the gap. We use our experience and industry knowledge to negotiate on your behalf. Ensuring that you do not leave money on the table, when it should be in your pocket, is what we do.
Our vast pharmacy expertise & knowledge: Our experience is second to none.
We are influential and trusted in the industry
Our connections and relationships in the industry are endless
Our personal owner/seller experience
Our strong morals and integrity
The list could go on but we won’t. Browse around our website and you will see for yourself.
Our consulting fee is negotiable based on many factors. Size of pharmacy, number of pharmacies being sold, and quality of business. We look at each pharmacy on an individual basis and will be able to determine the fee after the initial consultation conversation. We can assure you that our fees are extremely competitive in the industry. And most of all… we are worth it!