Looking to Buy a Pharmacy?

When you’re considering buying a pharmacy, it’s important to begin working with an accountant months before the sale. To help you understand the steps to buying a pharmacy, we’ve created this collection of resources including videos, a podcast and our pharmacy buyer’s side checklist. If you have question about your buying process, please contact us any time at (252) 482-7644 or email us at info@sykes-cpa.com.

Our Top Videos to Help You Buy a Pharmacy

These videos have also been compiled as an audio file if you’d rather download the Buying a Pharmacy Podcast.

Best Business Structures for New Pharmacies

If you’re thinking about owning a pharmacy, either buying an existing pharmacy or creating an organic startup pharmacy, we have tips about the best business structures. You’ll learn how early to begin planning for your pharmacy and various financial considerations to keep in mind.

http://www.sykes-cpa.com/best-business-structures-for-new-pharmacies/

Why that pharmacy for sale may be a bad idea

If you’re looking to own an independent pharmacy and you see a pharmacy for sale in your local area, is it a good idea to buy that pharmacy? In this video, Ollin talks about how to tell if a specific pharmacy for sale is not a good fit for you – including the importance of looking at script dispensing logs.

http://www.sykes-cpa.com/why-that-pharmacy-for-sale-may-be-a-bad-idea/

The Elements of a Pharmacy Loan Package Explained

In this video blog with Ollin Sykes, you’ll learn:
• What goes into a loan package
• Which are the most important parts
• How long it takes to put together
• What the bank is looking for in the package
• What happens after the loan package is delivered to the bank

http://www.sykes-cpa.com/the-elements-of-a-pharmacy-loan-package-explained/

NCPA Trends: A Rise in Organic Pharmacy Startups

One recent trend is the rise of new independent pharmacy owners who begin their new pharmacy organically rather than buying an existing location. In this video, Ollin talks about the top mistake future owners make, as well as the smart moves they can make.

http://www.sykes-cpa.com/ncpa-trends-a-rise-in-organic-pharmacy-startups/

Simple Tests for Pharmacy Accounting Health

Whether you’re an independent pharmacy owner or thinking about buying a pharmacy in the future, it’s important to know the signs of a healthy pharmacy accounting system. In this video, Ollin Sykes talks about two signs that help you know that a system is healthy and resilient.

http://www.sykes-cpa.com/simple-tests-for-pharmacy-accounting-health/

Pharmacy Buyer’s Side Checklist

( To download this buyer’s checklist as a pdf, click here.)

Pre-Planning

❏  Understand how you will perform due diligence investigation procedures for any possible pharmacy purchase

❏  Consider asset purchase versus stock purchase and the characteristics of each.

❏  Be prepared to use a valuation professional.

❏  Develop a written business plan, including capitalization and financing requirements.

❏  Review existing employee benefit plans if purchasing stock.

❏  Determine liability insurance requirements.

❏  Explore seller-financing opportunities.

❏  Prepare compensation agreements, rental agreements, loan documents, etc.


Starting a new business including purchasing assets

❏  For asset purchases, determine the fair market value of the target’s assets and allocate the purchase price.

❏  For asset sales, determine that the buyer’s and seller’s Forms 8594 are consistently prepared.

❏  Obtain tax and employer identification numbers, business licenses, etc., if purchasing assets and starting a new business.

❏  Consider the appropriate type of legal entity to operate the acquired business.

❏  Prepare corporate documents, if starting a new entity and purchasing assets (corporate charter and bylaws, LLC operating agreement, etc.).

❏  For an asset purchase, set up the tax depreciation schedule using the information from the allocation of the sales price.

❏  Determine employee benefit plans to adopt if starting a new company and purchasing assets.


Purchasing stock

❏  Evaluate potential contingent and undisclosed liabilities inherent in a stock purchase.

❏  For stock deals, consider the impact of Internal Revenue Code Sections 382-384 rules on the 
buyer’s ability to use the target’s net operating losses, etc.


Additional considerations

❏  Install accounting and payroll system.

❏  For C corporations, determine capital structure and owner compensation to avoid the double taxation issue.

❏  Consider related party tax rules, if necessary.

❏  Plan methods for retaining key employees.

❏  Consider consulting or non-compete agreements for former owners and the advantages of each.

❏  Identify first year tax elections that should be made.