Buying A Pharmacy
Sean Thurston PharmD
Personal Background
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May 2000 - Bachelors of Science in
Chemistry, University of Puget Sound
2000-2003 - Traveled, Fly Fishing Guide
2003-2006 - Drug Research
May 2010 - PharmD, WSU College of
Pharmacy
May 2010 – Employed At Elk Drug/Dayton
General Hospital, Dayton Wa
April 2011 - Purchased Drug Store
Motivations to Own a Pharmacy
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Lifetime Interest In Owning a Business
Previously Employed By Small Business
Owners
NCPA Business Plan Competition
Retirement Plan/Asset Acquisition
Advantages of Purchasing a
Pharmacy
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Low Risk
Know What To Expect
No Profit Lag
Obtain Customer Shopping Habits
Goodwill Already Established
Disadvantages of Purchasing a
Pharmacy
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Must Purchase Goodwill, Which May Be
Overpriced
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Higher Overall Price
Used Or Worn Inventory And Fixtures
Inherit Undesirable
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Personnel
Policies
Business Lines
Customers
Finding a Pharmacy
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Pick A Place You Want To Live
Research Business Trends
Network With Current Owners
Search Classifieds/Internet
Ask Sales People/State Organizations
Business Brokers
How to Buy a Pharmacy
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No Right Or Wrong Way To Purchase A
Pharmacy
Each Deal is Unique
The Final Purchase Will Be Determined By
The Capabilities And Intentions Of Both
Buyer and Seller
Establish a Price
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Business Must Make Payments And Turn A Profit
Determine What Will Be Included
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Establish Type of Purchase
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Inventory, AR, Fixtures, ext
Stock vs Asset Purchase
Determine Market Value
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Compare to Similar Sales in the Area
Hire A Company To Help
Use A Number Of Equations To Find An Average
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NCPA Blue Book Value Calculator
Purchase Options
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Junior Partnership
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Third Party Funding
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Equity Earned By Buyer Over Time
Private Or Bank Loan
Owner Carries Contract
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Owner Is The Bank And Buyer Makes Monthly
Payments To Owner
Write a Business Plan
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Definition: Detailed Description Of A Business
Operation And Documents Past Performance,
Current Status, Future Goals And Means Of
Achieving Those Goals
A Business Plan Is A Tool Used By A Potential Or
Current Business Owner To:
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Secure Third Part Investment
Reassure Business Partners
Have An Organized Plan To Follow
Establish A Timeline
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Be As Organized As Possible
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Set Dates
Make Lists
Delegate Tasks
Build Flexibility Into Timeline
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Closing The Deal Will Take Longer Than
Expected
Items For The Final “To Do List”
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Inventory And Inspections
Finalize Closing Documents
Change Over Licenses
Notify Third Party Payers
New Contracts With Suppliers/Wholesalers
Notify Providers
Notify Patients
Start Building Your Team Early
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You Will Most Likely Need Assistance
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Accountant: Assess Profitability Of The
Business, Important In Valuation
Attorney: Structure The Deal With Your Best
Interests In Mind
Experienced Pharmacy Owner: Mentor You In
The Whole Process
Banker, Insurance Agent, Buying Group,
Professional Organizations
Writing a Business Plan For the
NCPA National Competition
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Create A Team
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Chose Wisely, You Will Be Spending A Lot Of
Time Together
Individual Strengths Are Important
Equal Commitment
Agree On A Business Model
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Include Something Innovative And Creative
Keep It Realistic
Writing a Business Plan For the
NCPA National Competition
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Seek Out Help And Experience
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Previous/Current Pharmacy Owners
Professors/Faculty
Other Students
Create A Realistic Purchase/Start Up Plan
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Most New Grads Have Little Cash/Collateral
Writing a Business Plan For the
NCPA National Competition
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Work Together
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Mission Statement
Vision Statement
Goals
Divide And Conquer
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Description Of The Business
Marketing Plan
Financials
Supporting Documentation
Writing a Business Plan For the
NCPA National Competition
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Do Your Research
Sell Your Idea
Stick With What Works
Prepare To Defend Your Plan
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Top 3 Teams Present At The NCPA National
Convention
Learn As You Go
Questions?
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Good Luck!