Mergers & Acquisitions in the Pharmacy Industry

There are fewer buyers purchasing pharmacies. Some of the largest pharmacy chains have been purchased and consolidated in the pharmacy industry roll-up. Many smaller chains have run into financial difficulties and have stopped their expansion. Graduating pharmacy students have opted for jobs instead of the headache of ownership. Many independents have seen their own profits decreasing and have been hesitant to buy another pharmacy. It is more difficult for an inexperienced person to drive an acquisition price higher when there are fewer pharmacy buyers ready to complete a pharmacy acquisition.

Estate Planning

Estate planning is an essential part of the business planning for pharmacy owners who have decided not to sell their drug store during the pharmacy industry roll-up. Learn why pharmacy estate planning is important.

Pharmacy Industry: Current Market Conditions

Currently there are a number of factors that are impacting the current market conditions of the pharmacy industry. These factors are affecting the pharmacy business valuations of pharmacies and drug stores all across the U.S.

Pharmacy Profit Ratios:
Components that are considered in deriving a realistic value include national trends such as sales figures. We know that due to the aging population and new drugs being introduced that in general most pharmacies are seeing an increase in sales. However, due to federal regulations and other market conditions, net profit ratios are typically declining although sales are increasing.

Reimbursements:
Reimbursements have been reduced and this is negatively impacting the pharmacy owner’s profit. Additional cuts in pharmacy reimbursements are expected. On top of that, some states have become slower in paying the reimbursements. With many states getting into financial difficulties themselves, pharmacy owners will need to plan for the possibility of slower cash flow or even an interruption of the reimbursement payments.

Medicare/Medicaid:
When a pharmacy business has a larger portion of a prescription sales in Medicare/Medicaid then the cuts in reimbursements, and slower payments, will have a more profound effect on the pharmacy owner’s net profits. Some owners, out of necessity, will require the use of funds from accounts receivable financing, or some other type of financing.

Click here to read more of Current Market Conditions

Thinking of making a change and need a resource of information?

Pharmacy Articles & Information, Selling Buying Financing, Valuations ,Consulting, Glossaries 

Find information related to selling a pharmacy, buying a drug store, financing a single location or multiple pharmacies, and valuing a pharmacy along with other valuable information that will assist your decision regarding selling, buying, financing, and valuing a pharmacy or drug store.

The entire article can be read by clicking on the link, which will take you to the appropriate web page on the Washburn & Associates web site.

 

 

Pharmacy Articles & Information
Selling Buying Financing
Valuations Consulting
Glossaries 

Pharmacy Tax Strategies

Working With Your CPA  

Many CPA’s inform their clients that selling a pharmacy will result in high tax burdens. Most CPA’s do not handle the buying and selling of pharmacies on a daily basis as does Washburn & Associates. We can work with your CPA to inform them how the selling of your pharmacy can be accomplished while minimizing taxes.

End of Year Transactions

Waiting to the end of the year is not always the best strategy – we can tell you why.

Minimize Taxes

Do you know that for your pharmacy corporation there are special tax regulations that affect a good portion of your pharmacy transaction? This regulation is there for your benefit, but most pharmacy owners and CPA’s don’t know about it. When you are considering selling your pharmacy, find out from Washburn & Associates - the pharmacy industry experts, how you can use the tax codes to your benefit and maximize the amount of money you put in your pocket when you sell your pharmacy. 

Estate Planning

Did you know there are specialized IRS procedures that allow for minimizing Capital Gains Taxes? When a pharmacy, or other large asset, has appreciated in value over the years and is now being considered for a possible sale, there are specific strategies that can counter the exposure to capital gains tax when the asset is sold. These strategies, developed from federal IRS codes, allow the asset to be converted to an income stream, provide a tax deduction, increase asset diversification, and provide risk reduction, along with offering effective retirement and estate planning. There are some capital gain tax strategies that must be implemented before any obligation to sell the pharmacy. When you are considering selling your pharmacy either now, or in the next few years, you urgently need to consider the best course of action.

www.WashburnAndAssociates.com

Selling Your Pharmacy

Most business owners find that selling their business is one of the most important events in their life, both professionally and  personally. Handled properly, it can be very rewarding. Handled poorly,
it can become a perilous chore especially if employees, customers, vendors, and competition learn the business is for sale.

Selling a pharmacy is a complicated process that involves many difficult decisions. For most owners the pharmacy is their biggest personal asset.
It is difficult being impartial after years of work growing the business. Some of the issues are:

     How do I find a suitable and qualified buyer?
     How long does the process take?
     How do I keep the process confidential?
     How will I document the transfer?
     How will a buyer value my business?

Tough questions because each one impacts a subset of issues that require close attention. Washburn & Associates maintains it’s own database of buyers plus a network of co-brokers and affiliates. We rely heavily on our research capabilities to aggressively market businesses discreetly both locally and nationally. It is important to note that each sale is handled on a personal basis. Our approach to in-depth buyer interviews insures that we only bring you qualified buyers. 

Click here to read the Process of Selling Your Pharmacy.

Buying A Pharmacy

Washburn & Associates is a national company that handles the valuation, negotiation, and transfer of ownership of pharmacies. We start the process with targeted acquisition searches based on a qualified buyer’s parameters.

Jack Washburn is the owner of Washburn & Associates.  Jack has been working in the pharmacy industry since 1972, and Jack is known for his pharmacy expertise and is respected industry wide for his integrity and knowledge.  Jack’s skills and valuations are respected not only by hundreds of pharmacy chains and independents, but also by the largest financial institutions.

When deciding between completing an acquisition yourself, or to use Washburn & Associates, you will need to weigh several factors including skills, knowledge, and time. We can provide expert skills. Knowledge is power and we have extensive know how in valuing and transferring pharmacies. Transactions are time consuming. When doing it yourself, how many additional hours will you need to work to complete the transaction and then still not be certain if all the details were done correctly?

Acquisition searches we conduct are targeted and specific to the buyer. This allows us to provide the buyer with real prospects. We don’t want to spend the buyer’s time with transactions that don’t meet the buyer’s parameters. All searches and information is kept confidential.

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Selling, Buying, Valuing, and Financing a Pharmacy

Your pharmacy business will probably be the largest asset you ever own.

Any purchase or sell of a pharmacy should be carefully considered. You are an expert behind the counter and Washburn & Associates is an expert at valuing and transferring a pharmacy business.

Benefits when working with Washburn & Associates:

Free Pharmacy Valuations are provided to assist the owner in determining a direction without incurring any up front expenses.

Working in the pharmacy industry since 1972 has provided Washburn & Associates years of success and experience that benefits the pharmacy owner.

Auditing and valuing more than $4 Billion of pharmacies each year allows us to keep our hands on the pulse of the industry and advanced understanding of pharmacy market conditions. This in-depth knowledge is profitable to the clients of Washburn & Associates.

Our expert and specific strategies in structuring a pharmacy transaction can maximize the business value, reduce the seller’s tax liabilities, and put more money in the seller’s pocket. These strategies are not known by those who don’t consistently close pharmacy transactions including our competitors and most accountants and attorneys.

Are You An Independent Pharmacy Owner?

Considering selling your independent pharmacy business? Have questions about the process? www.washburnandassociates.com

Selling a pharmacy?

Have you heard about the free pharmacy valuations at www.washburnandassociates.com?