Pharmacy K – Western Kansas

This successful and well-managed drug store and gift shop is located in a historic downtown area. The long time pharmacy has been established as the place to fulfill your prescription and perhaps pick up a bouquet for a loved-one from the flower shop affiliated with the store. The company specializes in dispensing prescription medications, supporting medical accessories and has a gift / flower shop on the premises. The owner has also just added a new exciting feature to the facility, the Script Pro Robot, a state of the art computer allowing the process of filling a prescription even easier. The business has a steady stream of clients from doctor referrals, a neighboring hospital and nursing home. The business maintains an extensive base of accounts throughout the community it serves as evidenced by the almost 40,000 prescriptions it filled in fiscal year 2012. The pharmacy is the only drug store in the local area so there is little competition for this client base. The company is thriving despite the struggling economic downturn and going forward, revenues are expected to exceed industry projections over the next five years. The owner wants to retire but will stay on to help transition the business. A new owner purchasing the pharmacy would ensure that 5 essential jobs in the area are saved. This includes a full-time employee base of one registered pharmacist, one pharmacy technician and one support staff and two part-time staff members who assist with the business operations. The real-estate is owned by the owner which includes a single level building on a historic downtown city street and is leased back to a drug store that has been at this location for decades. Revenues over the past 4 years have consistently been in excess of $1.8 million and are currently around $1.85 million. They are currently profitable with reported operating profit margins of between 3% and 5%. The current level of profitability has been achieved through a moderate level of advertising and "word-of-mouth" promotion. A more aggressive marketing campaign, including creating a comprehensive company website and having a social media presence, could create significant growth potential. Annual or discretionary cash flow earnings to the new owner, i.e. adjusted EBITDA, are estimated to be more than $300K (after the new owner taking a reasonable compensation package), sufficient cash flows to a new owner to service any debt financing. The estimated value range or asking price of this business is between $770K - $1.1M (excluding cash, receivables, inventory, liabilities and facilities).

* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excluding Owners compensation)

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If you are interested in any of these offers or would like more information about the program or process, please contact Denton Zeeman at 785-864-8863, dentonz@ku.edu, or redtire@ku.edu.

 

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