Financing Support

Helping you identify the right financing.

We can help you identify and evaluate the myriad financing options available as you prepare to sell or buy a pharmacy.

Below are typical requirements for long-term financing, which is defined as a term of one year or longer:

Equity contribution from the buyer in the range of 10–20%: The buyer must put up a significant down payment from their own resources. It is important that the buyer have significant “skin in the game” and have his or her own resources at risk just as your resources are at risk.

Collateral coverage of 1:1: For every dollar loaned, there must be a dollar of tangible goods that could be sold to pay off the debt. This collateral is in the form of inventory and accounts receivable, as well as the prescription files.

Complete financial documentation: A full understanding of the financial health of the pharmacy and how it has performed operationally in the recent past is critical to financing. In many cases, the source of financing must review two years of financial statements and interim statements to evaluate the loan. Financial statements should include:

Income statement
Balance sheet
Cash flow statement

The customer also must submit projections and/or a business plan, including background information on the principals. The customer must also submit a signed personal financial statement.

Personal guaranty from the buyer: The buyer must personally guarantee the loan by completing a form of personal guaranty.