Buying A Pharmacy Sean Thurston PharmD Slide 2 Personal
Background May 2000 - Bachelors of Science in Chemistry, University
of Puget Sound May 2000 - Bachelors of Science in Chemistry,
University of Puget Sound 2000-2003 - Traveled, Fly Fishing Guide
2000-2003 - Traveled, Fly Fishing Guide 2003-2006 - Drug Research
2003-2006 - Drug Research May 2010 - PharmD, WSU College of
Pharmacy May 2010 - PharmD, WSU College of Pharmacy May 2010
Employed At Elk Drug/Dayton General Hospital, Dayton Wa May 2010
Employed At Elk Drug/Dayton General Hospital, Dayton Wa April 2011
- Purchased Drug Store April 2011 - Purchased Drug Store Slide 3
Motivations to Own a Pharmacy Lifetime Interest In Owning a
Business Lifetime Interest In Owning a Business Previously Employed
By Small Business Owners Previously Employed By Small Business
Owners NCPA Business Plan Competition NCPA Business Plan
Competition Retirement Plan/Asset Acquisition Retirement Plan/Asset
Acquisition Slide 4 Advantages of Purchasing a Pharmacy Low Risk
Low Risk Know What To Expect Know What To Expect No Profit Lag No
Profit Lag Obtain Customer Shopping Habits Obtain Customer Shopping
Habits Goodwill Already Established Goodwill Already Established
Slide 5 Disadvantages of Purchasing a Pharmacy Must Purchase
Goodwill, Which May Be Overpriced Must Purchase Goodwill, Which May
Be Overpriced Higher Overall Price Higher Overall Price Used Or
Worn Inventory And Fixtures Used Or Worn Inventory And Fixtures
Inherit Undesirable Inherit Undesirable Personnel Personnel
Policies Policies Business Lines Business Lines Customers Customers
Slide 6 Finding a Pharmacy Pick A Place You Want To Live Pick A
Place You Want To Live Research Business Trends Research Business
Trends Network With Current Owners Network With Current Owners
Search Classifieds/Internet Search Classifieds/Internet Ask Sales
People/State Organizations Ask Sales People/State Organizations
Business Brokers Business Brokers Slide 7 How to Buy a Pharmacy No
Right Or Wrong Way To Purchase A Pharmacy No Right Or Wrong Way To
Purchase A Pharmacy Each Deal is Unique Each Deal is Unique The
Final Purchase Will Be Determined By The Capabilities And
Intentions Of Both Buyer and Seller The Final Purchase Will Be
Determined By The Capabilities And Intentions Of Both Buyer and
Seller Slide 8 Establish a Price Business Must Make Payments And
Turn A Profit Business Must Make Payments And Turn A Profit
Determine What Will Be Included Determine What Will Be Included
Inventory, AR, Fixtures, ext Inventory, AR, Fixtures, ext Establish
Type of Purchase Establish Type of Purchase Stock vs Asset Purchase
Stock vs Asset Purchase Determine Market Value Determine Market
Value Compare to Similar Sales in the Area Compare to Similar Sales
in the Area Hire A Company To Help Hire A Company To Help Use A
Number Of Equations To Find An Average Use A Number Of Equations To
Find An Average NCPA Blue Book Value Calculator NCPA Blue Book
Value Calculator Slide 9 Purchase Options Junior Partnership Junior
Partnership Equity Earned By Buyer Over Time Equity Earned By Buyer
Over Time Third Party Funding Third Party Funding Private Or Bank
Loan Private Or Bank Loan Owner Carries Contract Owner Carries
Contract Owner Is The Bank And Buyer Makes Monthly Payments To
Owner Owner Is The Bank And Buyer Makes Monthly Payments To Owner
Slide 10 Write a Business Plan Definition: Detailed Description Of
A Business Operation And Documents Past Performance, Current
Status, Future Goals And Means Of Achieving Those Goals Definition:
Detailed Description Of A Business Operation And Documents Past
Performance, Current Status, Future Goals And Means Of Achieving
Those Goals A Business Plan Is A Tool Used By A Potential Or
Current Business Owner To: A Business Plan Is A Tool Used By A
Potential Or Current Business Owner To: Secure Third Part
Investment Secure Third Part Investment Reassure Business Partners
Reassure Business Partners Have An Organized Plan To Follow Have An
Organized Plan To Follow Slide 11 Establish A Timeline Be As
Organized As Possible Be As Organized As Possible Set Dates Set
Dates Make Lists Make Lists Delegate Tasks Delegate Tasks Build
Flexibility Into Timeline Build Flexibility Into Timeline Closing
The Deal Will Take Longer Than Expected Closing The Deal Will Take
Longer Than Expected Slide 12 Items For The Final To Do List
Inventory And Inspections Inventory And Inspections Finalize
Closing Documents Finalize Closing Documents Change Over Licenses
Change Over Licenses Notify Third Party Payers Notify Third Party
Payers New Contracts With Suppliers/Wholesalers New Contracts With
Suppliers/Wholesalers Notify Providers Notify Providers Notify
Patients Notify Patients Slide 13 Start Building Your Team Early
You Will Most Likely Need Assistance You Will Most Likely Need
Assistance Accountant: Assess Profitability Of The Business,
Important In Valuation Accountant: Assess Profitability Of The
Business, Important In Valuation Attorney: Structure The Deal With
Your Best Interests In Mind Attorney: Structure The Deal With Your
Best Interests In Mind Experienced Pharmacy Owner: Mentor You In
The Whole Process Experienced Pharmacy Owner: Mentor You In The
Whole Process Banker, Insurance Agent, Buying Group, Professional
Organizations Banker, Insurance Agent, Buying Group, Professional
Organizations Slide 14 Writing a Business Plan For the NCPA
National Competition Create A Team Create A Team Chose Wisely, You
Will Be Spending A Lot Of Time Together Chose Wisely, You Will Be
Spending A Lot Of Time Together Individual Strengths Are Important
Individual Strengths Are Important Equal Commitment Equal
Commitment Agree On A Business Model Agree On A Business Model
Include Something Innovative And Creative Include Something
Innovative And Creative Keep It Realistic Keep It Realistic Slide
15 Writing a Business Plan For the NCPA National Competition Seek
Out Help And Experience Seek Out Help And Experience
Previous/Current Pharmacy Owners Previous/Current Pharmacy Owners
Professors/Faculty Professors/Faculty Other Students Other Students
Create A Realistic Purchase/Start Up Plan Create A Realistic
Purchase/Start Up Plan Most New Grads Have Little Cash/Collateral
Most New Grads Have Little Cash/Collateral Slide 16 Writing a
Business Plan For the NCPA National Competition Work Together Work
Together Mission Statement Mission Statement Vision Statement
Vision Statement Goals Goals Divide And Conquer Divide And Conquer
Description Of The Business Description Of The Business Marketing
Plan Marketing Plan Financials Financials Supporting Documentation
Supporting Documentation Slide 17 Writing a Business Plan For the
NCPA National Competition Do Your Research Do Your Research Sell
Your Idea Sell Your Idea Stick With What Works Stick With What
Works Prepare To Defend Your Plan Prepare To Defend Your Plan Top 3
Teams Present At The NCPA National Convention Top 3 Teams Present
At The NCPA National Convention Learn As You Go Learn As You Go
Slide 18 Questions? Good Luck! Good Luck!
