One Destination, Two Roads to Pharmacy Ownership

By |October 1st, 2011|

Start a new pharmacy or buy a ‘used’ one? It’s more challenging than picking a car—even one you’ve always wanted.

You know you want a Ford Mustang, and that’s a given (or maybe a Corvette, a Porsche, or BMW). But do you buy an older, classic model or go with the very latest? Either way, you want it.

It’s the million dollar question for budding pharmacy owner: Do I buy an existing pharmacy, or do I start my own from scratch? Compelling arguments exist for both options. If you start from scratch, you do not incur a $1 million or more debt obligation. If you buy an existing pharmacy, you have stable operating income on day one to support your debt obligation. From the bank’s perspective, it is a relatively easy decision as historical repayment ability evidenced by an established pharmacy is much easier to finance than a start up operation where repayment is based on projections. It is a very daunting decision, [...]