As all pharmacy entrepreneurs are aware, the prospect of selling your pharmacy requires careful consideration. It is potentially the most important decision a pharmacy owner could make. However, the process to sell your pharmacy can be complicated and lengthy regardless of how well prepared you are.
Here are a few things to remember if you’re planning to sell your pharmacy:
- Expect Buyers to Do Their Due Diligence
As someone who is looking to sell their pharmacy, you must be prepared for buyers to be prudent and do extensive due diligence. You will be asked to release some proprietary information such as financial statements, customer lists, asset lists, and any legal or tax issues, which will have to be assessed by buyers. As a seller, you must be prepared to answer any difficult questions that may come your way from serious buyers.
- Understand Any Tax Implications
A Capital Dividend Accountant allows you to take a portion of the gains from the sale tax-free. You may also be allowed to use any business losses against taxable income from the sale or any future income.
- Freehold Property
A buyer’s lender will at least be looking for a 10-year term, so if you are the freeholder and are looking to still retain ownership of the property, as a seller, you have to prepare a new lease, which will have to be drafted by professionals. If a bank holds a mortgage over your property, you must ensure that there are no restrictions in order to pay off the mortgage. If you are a tenant, you will need to negotiate an extension to the lease term if necessary and assign this to your buyer.
- Be Prepared for a Lengthy Process
Selling a pharmacy business can be a lengthy process. Once your business finds the right potential buyer and an initial conversation has occurred, it is often a multi-month project to finalize a sale and hand over the reins. Some deals can occur within a couple of months, but this is relatively rare. Often the entire process can take 3-6 months from start to finish. It also depends on how you are being guided through the process. With the right guidance, your entire process will be smooth sailing.
- Get Advice from Experts
It’s essential for you as a seller to assemble the best team possible to navigate the sale process. Preferably, people who have had past experience in such situations and know the ins and outs of legal, tax, financing, and more. Therefore, it is recommended to find partners like EVCOR who specialize in selling an independent pharmacy.
Seek the Help of Experts When You Plan to Sell Your Pharmacy
EVCOR offers expert assistance in Toronto, Vancouver, Edmonton, and many other areas, including Calgary, Regina, Saskatoon, Winnipeg, and most other regions of Alberta, Saskatchewan, Manitoba, and Ontario. Contact EVCOR to learn more about our services.
