The Decision to Sell Your New Jersey Pharmacy
Pharmacies all across America are experiencing decreased reimbursements, lower net profits, and declining business values. These factors are driving many pharmacy owners to consider their options. Most people do not like change, so of course making the decision to sell the business can be extremely difficult.
After years of growing the business, and with it usually being the largest asset for owners and their families, the decision to sell your business will be one of the most important events in your life. While evaluating the different aspects of selling a drug store in New Jersey (NJ), consider the following points:
1. There are fewer NJ buyers in today’s market. This results in declining purchase prices.
2. Although sales for most New jersey drug stores are increasing, profit margins continue to decrease. Pharmacy owners are working longer hours while faced with increasing government regulations.
3. Taxes for Capital Gains has already increased. Due to uncertainties arising from the national debt, in the near future you may be faced with higher income tax and even higher capital gains tax.
4. A lack of action that results in not obtaining a financial reward is called an Opportunity Cost. Since purchase prices for pharmacies are declining, other opportunities may offer higher returns if you sell now and pursue new investments in NJ or other states.
5. If you are staying in the community as a seller of a New Jersey pharmacy you will have an opportunity of receiving a large sum of money along with a favorable employment contract from the buyer. Employment Contracts can be negotiated that offer a high salary, bonuses, vacation time, retirement packages, and don’t include the administrative headaches of ownership.
6. You have operated a successful business using your personal business formula. However, selling a business is not part of your day to day activity. Selling pharmacies is the day to day activity of PharmacyValuations.com.
7. An error many potential sellers make is not selling when buyers are ready to purchase. The decision to wait may put the deal into a timetable that is less rewarding.
8. As pharmacies experience decreasing “net” profit margins (even if sales are increasing) and the decision is made to wait a few years before selling, then your calculations retirement should include a future selling price that is less than what could be received for today’s purchase price of your NJ pharmacy
9. A large portion of the selling price is not your depreciated furniture and fixtures, or your “at cost” inventory, but rather a portion which can be considered Goodwill. When net profit margins drop, and you have to spend more time working to make the same amount of money, the “Goodwill” possesses less value.
10. Selling a pharmacy is a complicated and regulated process that involves many difficult decisions. Handled properly, it can be very rewarding. However, if it is handled poorly it can become a laborious and costly chore. Imagine the headaches, the loss of time, the loss of money that comes with making uninformed decisions.
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Discover the facts about selling a pharmacy in New Jersey. Visit the web site www.BuyingAndSellingPharmacies.com.
NJ drug stores can receive a free pharmacy business valuation by visiting:
www.PharmacyValuations.com.
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