Selling a CA Pharmacy
10 Points to Consider
10 Points to Consider
Pharmacies all across America are experiencing decreased reimbursements, lower net profits, and declining business values. These factors are driving many California (CA) pharmacy owners to consider their options. Most people do not like change, which mean the decision to sell CA drug store can be extremely difficult.
After years of growing the business, and with it usually being the largest asset for owners and their families, the decision to sell your business will be one of the most important events in your life. While evaluating the different aspects of selling a CA drug store, consider the following 10 points:
1. Taxes for Capital Gains has already increased. Due to uncertainties arising from the national debt, in the near future you may be faced with higher income tax and even higher capital gains tax.
2. Although sales for most California drug stores are increasing, profit margins continue to decrease. Pharmacy owners are working longer hours while faced with increasing government regulations.
3. A lack of action that results in not obtaining a financial reward is called an Opportunity Cost. Since purchase prices for pharmacies are declining, other opportunities may offer higher returns if you sell now and pursue new investments in CA or other states.
4. There are fewer buyers in CA in today’s market resulting in declining purchase prices.
5. You have operated a successful business using your personal business formula. However, selling a business is not part of your day to day activity. Selling pharmacies is the day to day activity of PharmacyValuations.com.
6. If you are staying in the community as a seller of a California drug store you will have an opportunity of receiving a large sum of money along with a favorable employment contract from the buyer. Employment Contracts can be negotiated that offer a high salary, bonuses, vacation time, retirement packages, and don’t include the administrative headaches of ownership.
7. If the decision is made to wait a few years before selling your pharmacy business, then your calculations for retirement should include a future selling price that is less than what could be received for today’s purchase price.
8. When net profit margins drop, and you have to spend more time working to make the same amount of money, the “Goodwill” in your business has less value. A large portion of the selling price is not your depreciated furniture and fixtures, or your “at cost” inventory, but rather a portion which can be considered Goodwill.
9. An error many potential sellers make is not selling when CA pharmacy buyers are ready to purchase. The decision to wait may put the deal into a timetable that is less rewarding.
10. Selling a pharmacy is a complicated and regulated process that involves many difficult decisions. Handled properly, it can be very rewarding. However, if it is handled poorly it can become a laborious and costly chore. Imagine the headaches, the loss of time, and the loss of money that comes with making an uninformed decision.
********************************
Learn more about the process of selling a pharmacy and how a potential buyer can receive pharmacy financing so you have more options when the decision to sell is made.
Visit: www.BuyingAndSellingPharmacies.com
For a free pharmacy valuation (no cost, no obligation) come on over to the web site: www.pharmacyvaluations.com.
For the latest updates about buying and selling a pharmacy follow us on:
Have a couple of minutes? View our short videos on YouTube.
Web
sites:
www.PharmacyValuations.comwww.BuyingAndSellingPharmacies.com
