Healthcare, Education & Personal Services · Buyer guide
Buying an Independent Pharmacy business
Published · Reviewed by The Diligence Standard Team · Updated
an Independent Pharmacy can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.
How the business works
Prescription volume, reimbursement spread, payer/PBM mix, inventory, specialty/services and regulatory compliance determine economics.
Risks to test
- PBM reimbursement pressure
- Inventory
- Licensing/DEA/compliance
- Payer concentration
- Owner pharmacist labor
- Working capital
Evidence to request and reconcile
- Rx system reports
- PBM/payer statements
- Inventory
- Licenses/compliance
- Payroll
- Vendor/wholesaler terms
Decision questions
- What is true gross profit per script by payer?
- What inventory is saleable?
- Which licenses/credentials must transfer?
- How much owner pharmacist labor must be replaced?
- What PBM reimbursement trends exist?