Doing your due diligence is essential to ensuring you understand the true value of a business and its potential for your future.
It can be challenging to determine if a current pharmacy business is a good deal or a potential money pit. Doing your due diligence is essential to ensuring you understand the true value of the business and its potential for your future. More importantly, you need to be able to provide that information to potential funders.
As both experienced pharmacy buyers and lenders, our team knows both the questions and the best answers for identifying a pharmacy worth your money. We ’ve created a free, downloadable checklist to help you evaluate and collect the information you – and your funders – will need to assess your opportunity. So whether you’ve found an existing pharmacy for sale, or are still shopping, here are some things you’ll want to know and areas covered by the checklist:
Why is the pharmacy for sale?
There are many answers to this question that don’t necessarily set off the alarms – owner/operator retiring to a fabulous place; this is sadly part of an estate being settled; etc. Then there are the ones that are the non-answers – “going into a different industry” or “moving and don’t want to manage at a distance” – the answers that make you wonder. And you should wonder.
No matter the reason, you want to dive deeper. Is the real reason owner is selling and “retiring” because the pharmacy for sale is no longer bringing in the income it formerly did? Has a Walgreen’s, CVS and/or Walmart moved in down the block and siphoned off most of the prescription (and incidentals) business? Or is just a poorly managed business that could be turned around with a better approach? Regardless of the answer, it is just one piece of the puzzle.
