Pharmacists PhysiciansImprovedPatientCareOutcomes

THE UNIVERSITY OF TEXAS AT AUSTIN COLLEGE OF PHARMACY

PLAN PRESENTED BY: Brooke Allison, Alex Cantu, Omar Fuentes & Chelsea Griffin

ADVISOR:

Nathan Pope PharmD, BCACP, FACA

Vision Statement

To be the first choice for healthcare professionals and patients in achieving optimal health and wellness.

Mission Statement

Las Palmas Pharmacy will provide patient-centered healthcare by implementing enhanced pharmacy services in collaboration with healthcare professionals, health plans, and other stakeholders to improve patient health outcomes while simultaneously lowering the healthcare costs of the Rio Grande Valley community.

Las Palmas Pharmacy | 2

Location

Situated in Edinburg, Texas - the county

seat of Hidalgo County (pictured in

red below)

Edinburg Population: 90,280 (2017 estimates)

Hidalgo County Population: 860,661 (2017 estimates)

Estimated to reach a population of over 1,000,000

by 2020

Surrounded by over 340 primary care

providers who combine to write an estimated 288,000 prescriptions every

month

The 3-mile radius (pictured below) surrounding Las

Palmas Pharmacy reaches

88,000Providers in 3 different

neighboring cities

A population that is majority Hispanic

Edinburg Hispanic Population: 89.1%

Hidalgo County Hispanic Population: 92.2%

Las Palmas Pharmacy | 3

Products and Services

• Chronic Care Management (CCM)• Annual Wellness Visit (AWV)

Primary Care Provider (PCP) Partnerships

• Prescription Medications• OTC Products• Vitamin, Supplements, and Herbal Products• Healthy Snacks and Drinks• Durable Medical Equipment (DME)

Products

• Meal Subscription Service• Registered Dietician• Fitness Classes• Medicare Diabetes Prevention Program (MDPP) Supplier• Weight Loss Services• Multi-Dose Adherence Packaging• Medication Synchronization• Medication Therapy Management (MTM)• Point-of-Care Testing• Prescription Delivery• Immunizations

Services

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Marketing and Promotional Materials

Media Print Advertisements Community Involvement, Outreach, & Sponsorships

• Sponsor at Fiesta Edinburg

• Edinburg Chamber of Commerce Member

• Grand re-opening • DHR Health

Community Health Fair

Las Palmas Pharmacy | 5

SUMMARY OF LOAN REQUEST Date of Loan Request: July 1, 2020 Applicants: Brooke Allison, Alex Cantu, Omar Fuentes, Chelsea Griffin Business Name: Las Palmas Pharmacy, LLC Amount of Bank Loan Request: $700,000.00 Amount of Sellers Promissory Note: $140,642.80 Terms of Request and Repayment: The bank loan value of $700,000 at a 7% interest will be paid over 10 years resulting in a monthly payment of $8,127.59. This amount is included in the monthly expense report. Down Payment: The new owners Brooke Allison, Alex Cantu, Omar Fuentes and Chelsea Griffin agreed to contribute $40,000 each in start-up capital each, resulting in a total capital investment of $160,000. Collateral: The inventory, fixtures, furnishing, equipment and prescriptions at Las Palmas Pharmacy, LLC will serve as collateral in case of venture failure. Other Conditions: The managing members/owners will obtain life and disability insurance in the amount of the loan and keep it active for the duration of the loan. Statement of Personal Guarantee: The new owners of Las Palmas Pharmacy, LLC personally guarantee the repayment of the loan. Summary of Buyout: The bank loan, seller’s promissory note and new owners down payment will be used towards 51% of the pharmacy valuation, startup costs, real state and working capital. Estimated Market Value of Business: $808,659.71 Estimated Market Value of Real Estate: $400,000.00 Debt-to-Equity Ratio: 8.06

Las Palmas Pharmacy | 6

JUNIOR PARTNERSHIP AGREEMENT Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Pharmacy Value* $ 808,659.71 $ 808,659.71 $ 808,659.71 $ 808,659.71 $ 808,659.71 $ 808,659.71 Jr. Partnership Ownership 51% 61% 71% 81% 91% 100% Money to Seller $ 412,416.45 $ 80,865.97 $ 80,865.97 $ 80,865.97 $ 80,865.97 $ 72,779.37 Owner Promissory Note Balance (6% interest at 5 years included) $ 163,141.20 $ 163,141.20 $ 130,512.96 $ 97,884.72 $ 65,256.48 $ 32,628.24 Owner Promissory Note Payment to Seller N/A $ 32,628.24 $ 32,628.24 $ 32,628.24 $ 32,628.24 $ 32,628.24 Real Estate Value $ 400,000.00 - - - - - Real Estate Payment to Seller $ 400,000.00 - - - - - Total to Seller $ 812,416.45 $ 113,494.21 $ 113,494.21 $ 113,494.21 $ 113,494.21 $ 105,407.61

BALANCE SHEET ASSETS End of 2021 End of 2022 End of 2023 End of 2024 End of 2025 Total Current Assets $ 1,802,349.07 $ 1,848,575.71 $ 2,128,310.92 $ 2,450,072.81 $ 2,829,848.11 Total Fixed Assets $ 161,460.00 $ 169,533.00 $ 178,009.65 $ 186,910.13 $ 196,255.64 Total Assets $ 1,963,809.07 $ 2,018,108.71 $ 2,306,320.57 $ 2,636,982.94 $ 3,026,103.75 Total Current Liabilities $ 238,655.70 $ 241,046.41 $ 244,661.19 $ 247,907.38 $ 250,105.22 Total Long Term Liabilities $ 1,534,695.26 $ 1,323,669.97 $ 1,112,644.68 $ 901,619.38 $ 690,594.09 Total Liabilities $ 1,773,350.96 $ 1,564,716.38 $ 1,357,305.87 $ 1,149,526.77 $ 940,699.31 Net Worth $ 190,458.12 $ 453,392.34 $ 949,014.70 $ 1,487,456.18 $ 2,085,404.44 Debt to Equity Ratio 8.06 2.92 1.17 0.61 0.33

INCOME STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $ 3,658,163.72 $ 3,800,626.50 $ 3,906,108.81 $ 4,004,644.57 $ 4,086,804.46 Total Cost of Goods Sold $ 2,786,213.99 $ 2,829,556.96 $ 2,869,784.30 $ 2,905,431.07 $ 2,928,332.21 Gross Profit $ 786,563.16 $ 905,413.88 $ 970,025.25 $ 1,032,475.92 $ 1,091,681.49 Total Expenses $ 508,159.48 $ 682,347.53 $ 731,125.79 $ 769,144.62 $ 792,733.57 Net Profit $ 194,882.58 $ 156,146.45 $ 167,229.62 $ 184,331.92 $ 209,263.54 Net Profit % 5% 4% 4% 5% 5%

CASH FLOW STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5

Cash on Hand $ 100,000.00 $ 349,611.68 $ 572,678.03 $ 811,577.49 $ 1,074,908.80

Total Cash Inflow $ 3,629,371.72 $ 3,800,626.50 $ 3,906,108.81 $ 4,004,644.57 $ 4,086,804.46

Total Cash Outflow $ 3,379,760.04 $ 3,577,560.15 $ 3,667,209.36 $ 3,741,313.26 $ 3,787,856.55

Yearly Gain $ 278,403.68 $ 223,066.35 $ 238,899.46 $ 263,331.31 $ 298,947.91

End of Year Cash Balance $ 349,611.68 $ 572,678.03 $ 811,577.49 $ 1,074,908.80 $ 1,373,856.71

FINANCIALS