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What is your pharmacy worth?

Start with the financial records, the operating model and what a buyer would acquire.

Explore the valuation factors
Understand the records and the business behind a discussion of value.

UNDERSTAND VALUE BEFORE GOING TO MARKET

Factors behind a discussion of value

A useful starting point is understanding what supports your pharmacy’s earnings, what a buyer would be acquiring, and which details still need to be verified.

Revenue alone does not tell the whole story. Reviewing the financial records alongside the operating model and proposed transaction can help frame a more informed discussion of value.

Request a Confidential Exit Review

Start with your goals and the records available. The first conversation can help identify what needs a closer look.

AREAS TO UNDERSTAND TOGETHER
A discussion of value
  • Financial performance
  • Revenue and payer mix
  • Pharmacy model
  • Buyer fit
  • Inventory and premises
  • Transfer and transition

Conceptual overview · no numerical weighting or price calculation

View the detailed valuation factors
Factors to review when assessing pharmacy value
FactorWhat deserves a closer look
Financial performanceEarnings quality, operating costs, and the consistency of cash flow.
Revenue and payer mixWhere revenue comes from and how reimbursement affects margins.
Pharmacy modelThe services offered, operating requirements, and business mix.
Buyer fitHow the pharmacy aligns with a buyer’s plans and financial capacity.
Inventory and premisesInventory condition and the terms of the lease or property arrangement.
Transfer and transitionThe agreements, relationships, and operational handoffs that need review.

SEPARATE THE FINANCIAL QUESTIONS

Understand the earnings behind a valuation

Revenue, business profit and owner income answer different questions. Review the definitions and a clearly hypothetical financial example.

Explore pharmacy profitability and owner income

MAKE THE CONVERSATION USEFUL

Start with the records available

Identify the financial statements, tax returns, inventory information, lease documents and key business agreements available for review. Agree on a secure process before sharing confidential records.

A discussion of value should identify assumptions and information still to be verified. It is not a guaranteed sale price.

A FRAMEWORK FOR THE CONVERSATION
  1. 01Available records
  2. 02Open questions
  3. 03Assumptions to review
  4. 04Discussion of value

QUESTIONS ABOUT VALUE

A common valuation question

How is my pharmacy’s value assessed?

A value discussion starts with the financial records and the business a buyer would acquire. Earnings quality, payer and revenue mix, staffing, inventory, lease terms, and buyer fit may all matter. A useful assessment identifies its assumptions and the information still to be verified.

START WITH A CONVERSATION

Thinking About Selling Your Pharmacy?

Talk through your goals, the questions on your mind, and what to prepare before going to market. Whether you are ready to act or still exploring, start with a confidential exit review.

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