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Issues to Consider
Start your list with these important considerations.
There can be several issues that you may need to consider as you plan for the eventual sale of your pharmacy. Here are some of the more important issues:
Taxes: Pharmacy owners should fully understand the tax consequences of the sale of the business. You would be wise to work with an accountant who handles the sale of businesses on a regular basis. Identify this professional help before the sale contract is structured, not afterward. A key issue to discuss with your accountant is reserving liquid funds from the sale of the business to cover any tax liability and other expenses.
Health insurance: How will you and your family receive health insurance after the sale of the pharmacy? Continuing to work part-time may be a good option for keeping health benefits.
Building ownership: If you own the building in which the pharmacy is located, you will need to decide how to handle the lease or sale of the building and incorporate that into the pharmacy sale documents, if appropriate.
Penalties: If you are financing a portion of the sale, discuss with your accountant and attorney any ongoing contingencies of the sale agreement, which address things such as providing annual financial statements and the consequences of these contingencies not being met.
Additional stores: If you are financing the new owner, discuss with your attorney the feasibility of requiring that you have veto power over the purchase of any additional pharmacy until you are fully paid off.
Monthly payments: Having all monthly payments handled via electronic funds transfers is advisable in many circumstances.
Employment contract: If you are going to be working in the pharmacy, get an employment contract. It doesn’t have to be binding but it should clarify the hours worked, paid time off, time off without pay, hourly wage/retainer, vacation time, insurance, and so forth.
The new owner: It is advantageous in many cases to know the person to whom you are selling and have them work in your store prior to the sale, if possible.
The best way to plan for the eventual transfer of your pharmacy to another owner is one step at a time. Such a step-by-step approach allows you to carefully consider goals, timing, financial matters, and more.