Retail & LTC Pharmacy Case Study
Strong sale price despite stagnant growth
HIGHLIGHTS
An independently owned retail and long-term care pharmacy located in the Bronx, NY. Established in 2005 as a 2-member LLC, this pharmacy had grown to a significant operation with $7.3 million in gross revenue for 2023.
CHALLENGE
Stagnant Revenue Growth:
Although the pharmacy experienced growth, it had plateaued in recent years.
Operational Focus:
The current staff was too occupied with daily operations to focus on initiatives that could drive higher profitability.
Owner Transition:
The retiring owner needed a seamless transition process that would reassure the staff and maintain customer satisfaction.
01
SOLUTIONS
M&A Healthcare Group conducted a thorough evaluation of the pharmacy’s operations and market position, identifying opportunities to enhance revenue through clinical services like immunization clinics and MTM. Leveraging our extensive buyer network, we targeted those capable of capitalizing on the pharmacy’s strengths, including its robust prescription claims and significant front-end investments. Ensuring confidentiality and compliance, we addressed concerns about staff continuity and patient care, and developed a comprehensive transition plan to minimize operational disruptions and maintain morale and trust.
02
Key metrics
$7.6M revenue forecasted for 2024. Despite the solid revenue figures, the growth had become stagnant, presenting an ideal opportunity for new ownership to drive further development.
03
OUTCOMES
The pharmacy generated annual revenues of $7.3M and had a loyal client base along with a team of skilled caregivers and administrative staff.
Successful Sale
The pharmacy was sold at an asking price of $2.8 million
Growth Potential
The new owner, equipped with a clear strategy for enhancing revenue and profitability, was poised to capitalize on the identified opportunities
Seamless Transition
The transition plan ensured a smooth handover, addressing the concerns of staff and patients, thereby maintaining the pharmacy’s reputation and operational stability
