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What should I know before moving forward with a pharmacy merger?

Pharmacy owners know that merger and acquisition deals are often the key to success in this competitive marketplace. A good deal can serve any number of goals such as expand your market or provide help in an area that you are lacking (such as online presence).

Three ways that you can help make sure the deal sets your pharmacy up for future success include the following.

#1: Get an accurate valuation

This is important for any business deal. Take the time to consider the tangible assets like the pharmacy, stock, and furniture as well as the intangible like the facility’s reputation. There are several different formulas that a buyer or seller can use when valuing a pharmacy. Make sure to discuss what went into the estimation that you are considering and discuss alternatives to make sure you get the right price.

#2: Take care of the staff

The other pharmacists and staff are often an integral part of the target pharmacy. A failure to move forward with the merger deal carefully can mean you lose these valuable experts.

#3: Never underestimate the importance of due diligence

This is particularly true after the pandemic. Pharmacies and other healthcare organizations throughout the country needed to shift their focus. In some cases, this meant their decisions focused on the resources available, potentially resulting to a riskier than ideal decision. This reality makes it even more important for pharmaceutical leaders looking to acquire an organization to take the time for on-site inspections with a focus on compliance with applicable rules and regulations.

Merging with a pharmacy that is not in compliance may be more of a headache than it is worth. You can reduce the risk of this type of error by seeking legal counsel to help complete this due diligence and discuss your options if you still wish to move forward with the deal.

Attorney John Rivas is responsible for this communication