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3 Tips for Selling a Pharmacy

Retired X-Wing Fighter, Force User, Lawyer, and Pharmacist Darshan Kulkarni strikes back to the Gavel & Pestle Podcast Universe to share […]

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July 18, 2017 Community Pharmacy, Gavel & Pestle Podcast

Retired X-Wing Fighter, Force User, Lawyer, and Pharmacist Darshan Kulkarni strikes back to the Gavel & Pestle Podcast Universe to share his advice for selling your pharmacy business. —May the Force be with You! 

Preparation

  1. Consider a self audit
  2. Consider a data room
  3. Have a HIPAA agreement in place
  4. Have clear financial data available for viewing for at least 3-5 years
  5. Make sure employment agreements for all key employees are done
  6. Be open to owner financing
    1. But have clear deliverables and
    2. A very clear exit strategy – how do you get your money if he doesnt pay?
  7. Looking at appropriate valuation
    1. There are quick and dirty strategies
      1. 3x Gross sales
    2. Online calculators
    3. Ask others what they have paid for similar sales
    4. Consider an actual valuator
  8. Is there any present or threatened litigation?
  9. Are there any pending or expected audits?

During the Sell

  1. Have a clear timeline, but an ultra aggressive timeline will doom your relationship from the start
  2. How will the money be paid?
    1. How much immediately
    2. How much after a certain period of time (e.g. costs come through, reimbursement comes through etc)
  3. What kind of promises do they expect? E.g. Business continues same way

After the Sell

  1. How long and for how many hours do you need to work with/for them?
  2. Fraud can come back to be highly problematic
    1. Kickbacks
    2. Billing
    3. Lack of Rx

So how can I help?

Darshan@conformlaw.com