By Brad MacLiver
Authorship and profile at Google
When an OK pharmacy or drug store is being sold, seldom does the buyer pay “out of pocket” cash for the acquisition. Even when cash is available,Oklahoma
Typical acquisitions take 6-9 months to complete, so the pharmacy seller inOklahoma
Along with the buyer and seller the acquisition will involve attorneys, accountants, lenders, valuation companies, industry specialists, along with others. No one wants to pursue 6-9 months of work involving a variety of highly paid professionals without having some confidence of the pharmacy buyer’s ability to close the deal.
The process will begin with determining the value of the business. There are many companies that offer valuation services. However, pharmacies inOklahoma
In order to complete a valuation the selling company needs to provide up-to-date data. Lenders will not accept old data, or a sellers “gut feeling.” Lenders need to make a decision to finance based on sound and verifiable information.
Structuring the transaction is extremely important. The seller of course wants as much money as possible and wants cash. The buyer needs to spread out the debt service and wants to have as little cash as possible invested in the acquisition.
Pharmacies and drug stores are in an industry where it is more difficult to obtain business loan due to the majority of the value in aOklahoma
Oklahoma Pharmacies have typically been known for generating profits and to be stable businesses, but they are typically operate in leased locations. Also, their furniture, fixtures, and computers will only provide about $15-20,000 worth of collateral to a buyer who is possibly requesting a million dollar loan. Lots of money will be tied up in inventory, but lenders will considers its small pills as easy to move out the door in the event of default. Due to these circumstances many lenders will not loan money to these traditional money making businesses. A successful transaction takes a lender that understands the pharmacy industry.
Here are some additional tips about pharmacy acquisitions and finance inOklahoma
1. Attorneys and CPAs that have represented the pharmacy seller for many years could view the transaction as putting themselves in a position of losing a client after the business is sold. Make sure they are working diligently on the transaction and are not slowing or undermining the process.
2. Since OK pharmacy acquisitions involve 6-9 months of work to complete , all parties involved need to be aware of time tables. Much too often, items of importance end up sitting on the desk of someone that is outside of the control of the buyer or seller.
3. All financial information needs to be current. Over the lengthy process the data supplied to both the buyer and the lender will need to be updated on a continuous basis. Things can change drastically during a nine month period and theOklahoma
When pursuing “pharmacy acquisition finance” in Oklahoma, for the best chance of success, make sure the valuation company and the lender have expertise in that industry. Choose a company that has the pharmacy experience and expertise, and is a direct correspondent with lenders who understand pharmacy.
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Authorship and profile at Google
When an OK pharmacy or drug store is being sold, seldom does the buyer pay “out of pocket” cash for the acquisition. Even when cash is available,
Typical acquisitions take 6-9 months to complete, so the pharmacy seller in
Along with the buyer and seller the acquisition will involve attorneys, accountants, lenders, valuation companies, industry specialists, along with others. No one wants to pursue 6-9 months of work involving a variety of highly paid professionals without having some confidence of the pharmacy buyer’s ability to close the deal.
The process will begin with determining the value of the business. There are many companies that offer valuation services. However, pharmacies in
In order to complete a valuation the selling company needs to provide up-to-date data. Lenders will not accept old data, or a sellers “gut feeling.” Lenders need to make a decision to finance based on sound and verifiable information.
Structuring the transaction is extremely important. The seller of course wants as much money as possible and wants cash. The buyer needs to spread out the debt service and wants to have as little cash as possible invested in the acquisition.
Pharmacies and drug stores are in an industry where it is more difficult to obtain business loan due to the majority of the value in a
Oklahoma Pharmacies have typically been known for generating profits and to be stable businesses, but they are typically operate in leased locations. Also, their furniture, fixtures, and computers will only provide about $15-20,000 worth of collateral to a buyer who is possibly requesting a million dollar loan. Lots of money will be tied up in inventory, but lenders will considers its small pills as easy to move out the door in the event of default. Due to these circumstances many lenders will not loan money to these traditional money making businesses. A successful transaction takes a lender that understands the pharmacy industry.
Here are some additional tips about pharmacy acquisitions and finance in
1. Attorneys and CPAs that have represented the pharmacy seller for many years could view the transaction as putting themselves in a position of losing a client after the business is sold. Make sure they are working diligently on the transaction and are not slowing or undermining the process.
2. Since OK pharmacy acquisitions involve 6-9 months of work to complete , all parties involved need to be aware of time tables. Much too often, items of importance end up sitting on the desk of someone that is outside of the control of the buyer or seller.
3. All financial information needs to be current. Over the lengthy process the data supplied to both the buyer and the lender will need to be updated on a continuous basis. Things can change drastically during a nine month period and the
When pursuing “pharmacy acquisition finance” in Oklahoma, for the best chance of success, make sure the valuation company and the lender have expertise in that industry. Choose a company that has the pharmacy experience and expertise, and is a direct correspondent with lenders who understand pharmacy.
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