The Power of Good Neighbor Pharmacy
Much like the current volatility of the housing market due to the COVID-19 pandemic, the community pharmacy buy/sell market is also experiencing a marked increase of activity compared to recent years. Young entrepreneurial buyers and multi-store owners see the ability to administer vaccinations as a springboard to new revenue streams through enhanced clinical services. Multi-store operations continue to increase, with more than 31% of owners today having ownership in two pharmacies or more.
Plus, roughly two thirds of pharmacy owners are nearing retirement age. This creates a tremendous opportunity for both first-time and existing pharmacy owners to acquire independent pharmacies that might otherwise close, ensuring employee and patient continuity and maintaining vital healthcare destinations in their communities.
For potential buyers, once-in-a-lifetime incentives like economic stimulus and emergency funding are making first-time acquisition or multi-store expansion even more enticing. For example, the Small Business Association (SBA) is providing payment relief for all 7(a) loan holders and enticing buyers to acquire assets by giving them three months principal and interest payments paid for by the SBA. This ultimately results in a discounted price for an acquisition. The SBA has also waived processing fees for newly established loans, resulting in potential savings of tens of thousands of dollars.
To help current and future pharmacy owners seize these opportunities, our Pharmacy Ownership Services team has been busy throughout the pandemic, connecting buyers and sellers and advising all concerned parties about the availability and acquisition of emergency funding. Also, by working closely with SBA lenders and pharmacy-specific accountants, the Pharmacy Ownership group was able to effectively communicate to pharmacy owners and buyers the benefits of the economic stimulus. This in turn has led to a substantial increase in acquisition from first pharmacy buyers to multi-store owners expanding their business. We continue to see an increase in demand for buyers interested in exploring acquisition opportunities, which presents a great opportunity for those pharmacy owners that are interested in creating an exit plan strategy.