Pharmacy owners looking to sell their practice and move on to the next chapter of their lives can benefit from a basic understanding of the process. Whether looking to sell to a large corporation like CVS or Walgreens or hoping to keep the pharmacy directly in the hands of another pharmacist, the process generally begins with a valuation.
There are various calculators available that can help give you a basic idea, but it is often best to hire a specialist. A specialist will gather information about the market as well as details about your pharmacy to come up with a more accurate estimation of the worth of the practice. This will serve as a valuable tool during negotiations.
You can take steps to help better ensure you get a good price for the practice. Similar to selling a home, relatively simple changes can make a big difference. A fresh coat of paint, an upgrade of the waiting area, and replacing old equipment can help to increase the pharmacy’s value.
Prepare for the process to take approximately 45 to 60 days after a buyer presents an offer. A savvy buyer will complete their own due diligence and will want to verify financials and other documents before heading to closing. After this is complete, the standard timeline for the rest of the sale generally includes an additional two to six weeks to negotiate the purchase agreement another 4 to 12 weeks for the buyer to finalize funding and another 4 weeks to move through the closing process.
Unlike selling a house, there are rules and regulations that come with buying and selling health care companies like pharmacies. Just like you get a specialist to help with the valuation process, it is also wise to get a specialist to help with the legalities that come with the transaction.
Attorney John Rivas is responsible for this communication