Pharmacy K901 – North Central Kansas
This independently owned full-service pharmacy in North-Central KS, offers commercial, compounded, and natural medications for customers whose needs range from critical to preventative care. The pharmacy has not only provided customers with quality products at affordable prices, but also with the kind of personalized attention that's garnered the respect and trust of local physicians, and led to high customer referral and retention rates. The practice offers its customers convenience features, like home and business delivery, a drive-thru window, and automated phone and online refill options - as well as individualized care through patient counseling, blood pressure monitoring, medication therapy management, and home-healthcare supplies. As a member of the Good Neighbor Pharmacy network, technicians and other staff are trained to answer patients' health-related questions with compassion and expertise. The pharmacy's reputation for patient-centered care extends beyond the walls of the pharmacy into the community, where the owners have raised their children and proudly support the local public schools, businesses, and charities. The practice employs 13 people – eight full-time and five part-time – including the owner/pharmacist, two staff pharmacists, four fully trained technicians, three cross-trained technicians/clerks, one management staff member, one full time and one part-time front office/support staff. The staff are willing to stay on with a new owner. The practice can be managed with two full-time pharmacists due to processes implemented over the last couple of years. The owner has been working part-time the last 2 & ½ years and only one day a week the last year. This pharmacy is located in a custom-designed 2,500 square-foot building on 1.64 acres of land conveniently located near a hospital and physician offices. The business uses appropriate technology and work flow, which includes a Smart Cabinet for counting technology, IVR, and in October 2012 converted to Computer-Rx practice management and Point-of-Sale system that integrates seamlessly with the other technology. The pharmacy accepts all major credit cards and payers, including Medicare Part D plans and Medicaid. The sale would include all of the assets, equipment, supplies, and a well-established client list. The real estate and facilities are owned by the owner via a separate legal entity and leased to the pharmacy. Preferably all assets would transfer with the business, although a lease or lease-to-purchase agreement could be negotiated separately from the sale for the real-estate. Beginning in 2014 the business contracted with the local health center for 340B Drug Pricing Program, which has resulted in an improvement of margins and gross profits. Gross revenues have held steady around $3.6M over the past five years, despite an industry-wide trend to generic prescriptions. There may be opportunities for growth and continued profitability, with profit margins currently between 3% and 5% of revenue (estimated $100K+). Annual discretionary cash flow earnings to the new owner, i.e. adjusted EBITDA, are estimated to be more than $360K - sufficient cash flows for a new owner to service any debt financing and still receive a sizable remuneration package. The estimated value range from operations of the practice is between $780K and $1.15M (excluding receivables, inventory, liabilities and facilities).
* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excluding Owners compensation)