By Brad MacLiver
Authorship and profile at Google
With the current market conditions many NJ pharmacy owners are experiencing lower profit margins and have considered selling. A pharmacy industry roll-up inNew Jersey New Jersey
Estate Planning is, to many people in all industries, a topic which tends to be avoided. Pharmacy owners that work 6 days a week, do not take many vacations, fill scripts all day, then mop the floor and do the books at night usually don’t have much time to consider additional things such as estate planning. However, acknowledging that there will inevitably be a transfer of the business, it is important for the pharmacy owner to complete a proper succession plan for theNew Jersey
Developing a plan for transfer of the business will be time consuming, but when correctly it will allow the business to be successfully transferred in an acceptable manner. It is not necessary that an estate plan for a pharmacy owner be a changeless process. Making fine-tuned adjustments, updates, and amendments are advised as government regulations, personal expectations, and economic conditions change.
Estate planning enables a pharmacy owner inNew Jersey
The process may involve Trusts, Wills, Living Wills, Power of Attorney, Medical Power of Attorney, Business Valuations, Life Insurance, Charitable Remainder Trusts, Buy-Sell Agreements, and other legal documents. All of the different aspects of the estate planning are to provide the pharmacy owners coordinated directives.
When there are non-family members as partners in the drug store business, it is essential that the estate planning incorporate a Buy-Sell Agreement. A buy-sell agreement, governs the transfer of the business between NJ pharmacy partners. The agreement may also be known as a partner buyout agreement, or a business will. To help protect the family in the event of a partner’s death, the buy-sell agreement may be funded with a life insurance policy.
Estate planning, buy-sell agreements, and the transfer of the pharmacy should incorporate a pharmacy business valuation completed by a third party that has expertise in the pharmacy industry, performs a large number of pharmacy business valuations each year, and has current industry data as a basis for the conclusions. Using simple accounting formulas, multipliers, and valuators inexperienced in pharmacy will not provide an accurate business valuation.
Most pharmacy owners spend a major part of their life building the business. The efforts should not disappear because the pharmacy owner refuses to accept their mortality and plan accordingly. The only pharmacist in some smallNew Jersey
Tips for NJ Pharmacvy Onwers:
Authorship and profile at Google
With the current market conditions many NJ pharmacy owners are experiencing lower profit margins and have considered selling. A pharmacy industry roll-up in
Estate Planning is, to many people in all industries, a topic which tends to be avoided. Pharmacy owners that work 6 days a week, do not take many vacations, fill scripts all day, then mop the floor and do the books at night usually don’t have much time to consider additional things such as estate planning. However, acknowledging that there will inevitably be a transfer of the business, it is important for the pharmacy owner to complete a proper succession plan for the
Developing a plan for transfer of the business will be time consuming, but when correctly it will allow the business to be successfully transferred in an acceptable manner. It is not necessary that an estate plan for a pharmacy owner be a changeless process. Making fine-tuned adjustments, updates, and amendments are advised as government regulations, personal expectations, and economic conditions change.
Estate planning enables a pharmacy owner in
The process may involve Trusts, Wills, Living Wills, Power of Attorney, Medical Power of Attorney, Business Valuations, Life Insurance, Charitable Remainder Trusts, Buy-Sell Agreements, and other legal documents. All of the different aspects of the estate planning are to provide the pharmacy owners coordinated directives.
When there are non-family members as partners in the drug store business, it is essential that the estate planning incorporate a Buy-Sell Agreement. A buy-sell agreement, governs the transfer of the business between NJ pharmacy partners. The agreement may also be known as a partner buyout agreement, or a business will. To help protect the family in the event of a partner’s death, the buy-sell agreement may be funded with a life insurance policy.
Estate planning, buy-sell agreements, and the transfer of the pharmacy should incorporate a pharmacy business valuation completed by a third party that has expertise in the pharmacy industry, performs a large number of pharmacy business valuations each year, and has current industry data as a basis for the conclusions. Using simple accounting formulas, multipliers, and valuators inexperienced in pharmacy will not provide an accurate business valuation.
Most pharmacy owners spend a major part of their life building the business. The efforts should not disappear because the pharmacy owner refuses to accept their mortality and plan accordingly. The only pharmacist in some small
Tips for NJ Pharmacvy Onwers:
1. When the family drug store is the sole means of income for several family members it becomes even more crucial to have a succession plan in place.
2. To avoid disputes, estate plans should be developed with clear directives.
3. Minimizing tax liabilities is a major objective for most completing an estate plan, therefore expert tax advice should be sought.
4. Many on-line documents and books are available that provide advice and documents for developing an estate plan. When going the self-help route, it is advisable to have a paid expert review the completed documentation to ensure that it can be legally complied with when the time comes.
5. While developing the estate plan it is essential to talk with children and other family members of the NJ pharmacy owner especially if there are some family that work in the business and others that don’t.
