Entries by Aaron TRAGER

Difficulties Transferring the Pharmacy’s Lease

This may be the most problematic obstacle of all the impediments faced by sellers. Whereas a great majority of the obstacles are somewhat within sellers’ control, that is not necessarily the case with transferring a facility lease.  Landlords can be unpredictable and typically have a lot of leverage in lease negotiations with prospective buyers. Become […]

Confidentiality Breaches and Employee Suspicion When Selling a Pharmacy

Maintaining confidentiality in the process of selling your pharmacy is absolutely critical.  Although there are numerous overwhelming reasons to use a professional intermediary when selling your business, confidentiality would be very near the top. If you try to sell the business yourself, it is almost impossible to maintain confidentiality.  Experienced brokers know how to control […]

Don’t Tell “War Stories” to Pharmacy Buyers

Understand who your buyer is – and is not – and tailor your message to them. Sellers Must Understand Buyers’ Motivations When Selling a Business In making the decision to pursue an acquisition of an existing business, buyers have multiple motivations, among them: controlling their own destiny; more freedom and flexibility in their daily lives; […]

Dealing with Emotions When Selling a Pharmacy

For most owners, the decision to sell their business is very emotional.  It’s their baby.  Their personal identity is tied to the business.  It’s who they are.  And they have poured a lot of blood, sweat and tears into nurturing the business through good times and bad.  It’s almost as if the business is a […]

Lack of Flexibility in Negotiations When Selling a Pharmacy

Negotiations in the sale of a business are seldom easy.  You need to be prepared for an emotional roller coaster ride. In small business sales, in most instances, negotiations are between a first-time buyer and a first-time seller.  The negotiations typically involve the biggest and most important transaction of both parties’ careers.  And both parties […]

Trust Issues from Inadequate Disclosures before Due Diligence

Developing trust early in the relationship between sellers and buyers is one of the keys to a successful business sale.  Much of that responsibility belongs to the intermediary representing the seller. You should disclose knows issues upfront, but certain things, even really bad things, do not have to be disclosed. Disclose known issues up front […]

Losing Focus – Business Decline During the Pharmacy Sale Process

On lists of deal-killers, this obstacle is often near the very top.  Nothing is more important than keeping your focus on maintaining the operations and profitability of your business while you are involved in the sale process. Owners losing focus happens often for two reasons: (1) after going through the emotional decision of making the […]

The Risk of a Confidentiality Breach When Selling a Pharmacy

These risks apply especially to pharmacies in a small town or with untrustworthy competitors. The possibility of a confidentiality breach increases exponentially when you have conversations with industry insiders, or friends, (or even with some unethical brokers) and utter words such as “if there were a buyer…”  Individuals you talk with who have not signed […]

Excessive Personal Expenses and Skimming Cash When Selling a Pharmacy

It’s best to eliminate skimming cash and the running of excessive personal expenses through the company, or the skimming of cash, several years before selling your business. Properly documented personal expenses run through the business, which have nothing to with operating the business, can be added back into EBIDA, so long as you have documentation […]

Selling a Pharmacy with Large Working Capital Requirements

Owners need to be aware that large working capital requirements can be an obstacle to salability or, more likely, to maximizing the value of a pharmacy. We see this especially in specialty stores, but even stores that have lots of Humira, insulin, Ozempic or other expensive drugs. Our first piece of advice on this issue, […]

Minimizing Buyers’ Risk to Get Top Dollar for your Pharmacy.

Minimizing buyers’ risk not only aids the salability of your business, tackling the issues improves the prospects and profitability of your business.  Your reward is putting more money in your pocket during your period of ownership.  That’s why it is never too early to start! All Buyers are concerned about risk As buyers look at […]

Contingency Planning – Facing Your Own Mortality

When a business owner dies (or becomes incapacitated) earlier than expected without a contingency plan to deal with the situation, it can be fatal to the business. Plan today to avoid catastrophe.  When a business owner dies (or becomes incapacitated) earlier than expected without a contingency plan to deal with the situation, often the company […]

Pharmacy Acquisitions that Cannot be Financed

Underwriting criteria is much more restrictive since September, 2008 Prior to the credit crisis in September 2008, it was usually possible for prospective buyers to obtain SBA loans without the seller participating in the financing of an acquisition.  After that crisis, the SBA underwriting criteria is now much more restrictive.  In addition, the SBA is […]

Lack of Required Approvals When Selling a Pharmacy

A Favorite Famous Quote“Most people spend more time and energy going aroundproblems than in trying to solve them.”  Henry Ford Lack of Required Approvals from StakeholdersIt’s hard to believe, but it happens.  Owners put their business up for sale without reaching an agreement with other shareholders, partners or stakeholders who own a portion of the business […]

8 tips for identifying and managing toxic pharmacy employees

In a team environment, it’s important for colleagues to develop healthy relationships that allow them to trust each other. When one of the members starts expressing toxic behaviour, it can be challenging for the team to operate smoothly and maintain high efficiency and productivity levels. Learning how to deal with negative behaviour in the workplace […]

Burned-Out Pharmacy Owners Ruin Business Value

We receive a staggering number of calls from pharmacy owners who have been burned out for the past few years and want out. If these pharmacy owners don’t move sooner than later, they will ruin the value of their business. All business owners run the risk of “burn-out.”  With the stress of being the go-to […]