Book a time to chat

The Community Pharmacist Blog

Pharmacy shelves_blurred_wide

Selling a Community Pharmacy vs. a Pharmacy Junior Partnership

Posted by Rick Coakley on Thu, Apr 25, 2013 @ 12:57 PM


There has been much debate recently about whether selling a community pharmacy outright orcommunity pharmacy, pharmacy exit planning creating a pharmacy junior partnership is the optimal route in exiting a pharmacy.  

Many organizations will steer you in the direction that fits their chosen business model. There is nothing wrong with organizations building their business models this way. However, before you choose to work with any of these companies, we feel it is important to understand all exit strategy options along with the benefits and roadblocks associated with each option.

No matter which direction you choose, there are a couple of issues you will need to address before either of them will work. They are:

  1. Determining what life after pharmacy will look like for you
  2. Getting financially and emotionally prepared to leave the pharmacy

Every pharmacist we have served has developed a vision and identified several compelling reasons for why they want to exit their pharmacy. The thought we promote during this stage of developing an exit plan is that exiting your pharmacy is not only the end of a significant portion of your life, but also the beginning of the next.  This could possibly be even more of a significant portion of your life. We have found that the ability to see life after pharmacy as positive and inspiring is a challenging endeavor for most pharmacy owners. Click Here for a recent blog post on the emoitional challenges community pharmacy owners face when it comes time to exit.

Visions for exiting the pharmacy can differ dramatically. For example, before we helped one of our pharmacy owners transition out, he wanted to bring in a young pharmacist and help him gain a complete understanding of what ownership actual means and how everything works. Our client estimated this process would take an estimated three to five years. Another pharmacy owner's vision was to sell outright and just be done with the pharmacy. The timing and planning for these two completely different visions was and should be unique to the owner and what he or she wants.

Once you have a clear vision for what you want your exit to look like, you can then put the wheels in motion based on the type and timing of your exit. The earlier you do this, the easier choosing the best exit planning team becomes.

There is another scenario you need to be aware of. We have had a few pharmacy owners tell us their vision for exiting the pharmacy only to discover that option is not available to them. For example, we helped an owner who was in the process of selling the stocommunity pharmacyre to a young person, when the financing fell through. Now, if that had been the only option, the pharmacy owner would have had to postpone his exit until another buyer was found or alternative financing arrangements could be made... or both. The best way to address unforeseen roadblocks like this is to have multiple options. Certainly it makes sense to have a preferred vision you are working towards, but it also is important to build in a good degreee of flexiblity and be prepared to go another direction in order to achieve your goals.

The begin, creating an exit strategy blueprint can help you really get focused on your vision and the options you have available. This process is similar to having blueprints drafted for a new pharmacy building or a new home. Once it is in place, you will be able to determine if the decisions you make along the way are the right decisions for fulfilling your vision for exiting the pharmacy. We have developed a set of worksheets that can help you get started on creating your blueprint.

Create Your Exit Strategy Blueprint

Where does this wisdom come from?

The content of this blog is inspired and substantiated by our experience helping independent community pharmacists enjoy financial independence during and after their life in pharmacy. When a pharmacist reaches out to us for information and help, we endeavor to give them as much free value as is possible. In addition to providing educational and strategic planning tools (like The Exit Strategy Blueprint), we invite qualified pharmacists into our formal discovery process.

The first step of the process is completing The Inspired Goals Workshop. This 90-minute session enables us to deliver a detailed and personal Inspired Independence Blueprint. The blueprint provides a personalized roadmap for achieving your goals and enables you to fully understand the value of joining The Inspired Independence Program.

If you wish to learn more about any aspect of our work, the free value we offer, or to be considered for The Inspired Goals Workshop, visit our web site at www.waypointus.com or call 843.873.4420 and ask for Ben or Matt Coakley.

At Waypoint Pharmacy Advisors, we take care of you!

Topics: community pharmacy owner, pharmacy exit planning, life after pharmacy, pharmacy exit strategy