Whether you’ve worked your whole career building your business, inherited or purchased from family, or more recently acquired the business, at some point all owners start to think about the next chapters of their life and selling their business. The world of pharmacy isn’t much different from other businesses in this sense, and it can be hard for an entrepreneur, visionary, and owner to start forecasting life without the business they’ve given so much of their time, energy, focus, and money.
The past few months have probably been a blur. If you worked with a broker, they more than likely handled a lot of the negotiations, paperwork and were great at saying “Don’t worry, we’ll handle it”, “Sign Here”, “Send me this document” etc. But what happens after you sign on the dotted line and your pharmacy or your files officially become someone else’s property? What additional items do you need to complete to tie up all the loose ends? And, most importantly, what is the broker you just paid 8-15% of the sales price of your business, going to do to help you?
Although a pharmacy’s true value is determined by what a buyer is willing to pay for it, there are a number of factors that go into a valuation. Beyond that, valuations happen for a variety of reasons, including retirement planning, expanding a current business, or adding a location. Less fortunate examples include dissolving partnerships, a buyout or dispute, and settlements of assets or estates. Or, in the case of purchasing a pharmacy, a valuation helps determine if the asking price has merit.