Washburn & Associates 

Pharmacy Acquisition Specialists

FAQ - Click on any question to view the answer

Q 1:  Will the buyer purchase the stock of the existing company?

Q 2:  Does Washburn & Associates sell a wide range of businesses?

Q 3: Is Washburn & Associates just trying to list the store without really having a buyer?

Q 4: How do we know that the initial price range given is a legitimate price?

Q 5: Can the price range change?

Q 6: How long does it take to close?

Q 7: Since Washburn & Associates contacted the seller concerning a buyer that was "looking in the seller's area," why are we paying the commission instead of the buyer?

Q 8: How is Washburn & Associates able to continually receive higher prices?  Don't repeat buyers resist paying higher prices, or feel that they are over paying?

Q 9: What is the commission rate?

Q 10: Does Washburn & Associates provide references?

A 1: Due to the potential liability consequences related to the drug industry, the buyers do not buy existing stock. 

A 2:  No.  Unlike a local business broker that will list and try to sell anything from bars, restaurants, manufacturers, etc., we are a national company that specializes in pharmacies. Although we are licensed and have the capabilities to sell all types of business, we choose to focus our efforts and be the best in the pharmacy industry.

A 3:  No.  We go to great expense in doing our acquisition searches.  We absorb the cost of traveling to meet with you, and to complete a site survey of your store and surrounding area.  The "Hard Analysis", which we complete for no charge, would cost $3,500.00 if we were called on to just value a business.  We provide the buyer a professionally completed analysis.  We do all of this at our expense with no cost, or obligation to the seller.  Neither the buyer, nor the seller pays any up front fees.  We need to do our due diligence on the buyer and have confidence of their seriousness of completing a transaction, before we undertake these expenses.  it would be an expensive way to "kick tires" if we did not have confidence our buyers were serious about buying.  

A 4: Due to years of experience and the number of transactions we handle across the U.S., we have good statistical data to base our calculations on.

A 5: Yes.  It is important that when we do the initial interview, we receive good information.  Wrong information will not lead to a right answer.  If information is misstated, the price range may fluctuate when the hard analysis is done.  Note: We collect the hard copies of the businesses, financials, tax returns, etc., to verify to the buyer that the information we present to them is accurate.

Prices can also change when a seller decides to wait instead of pursuing the potential transaction.  Unfortunately the prices typically will be lower when the seller waits for a later date.  This can happen for three reasons.  One, Washburn & Associates is contacting you because a buyer has requested a store in your area.  It is always best to sell when there is a ready and willing prospect.  Two, as the pharmacy industry changes there have been changes in the pricing.  A couple of years ago some of your fellow independent owners sold at the highest prices the industry has seen.  Since then there have been corrections in the pricing, and buyers are becoming more cautious.  Three, there are fewer individuals buying pharmacies.  When there is a reduction in buyers, in any industry, there is a reduction in price.

A 6: The time frame will vary in every circumstance, but once we receive the information from the seller it takes Washburn & Associates two weeks to conduct a hard analysis and an executive summary is provided to the buyer.  We anticipate a response from the buyer within two to three weeks, as to their desires to move forward with the deal.  As the deal progresses, time needs to be allocated for license transfers, and the "Bulk Sale Act" which allows creditors 30 days to make claims.  A minimum of three months should be considered, but a typical transaction will take six months to complete.  For larger buyers, the process is lengthier due to the fact that they have their real estate people fly to the location for further analysis and depending on their work load and time schedules may need additional time.  Also any lag in receiving requested information can lead to extended amounts of time.  Buyers won't be pushed into making a decision without being given the chance to review the requested data of the business.  The transaction needs to be handled professionally, cooperatively, and diligently in order to come to a win/win satisfaction of both parties.

A 7:  Buyers contact Washburn & Associates due to the benefits that we provide them.  We do the acquisition searches and provide them a professional analysis of the business at no cost to them.  This has lead to strong and continuous relationships.  By coming to you with a buyer in hand, we do not need to waste your time in beating the bushes and knocking on doors.  Sellers that are serious about selling generally want to get the process under way.  If we were paid by the buyer, they would be hiring us to find the best deal (keep the price down).

When we work for the seller, we function as a tool to get the best price (drive the price up).  Since most Pharmacists are not accustomed to the intricacies of mergers and acquisitions, dealing direct with a buyer will result in one party having more knowledge about the process than the other.  With our expertise, we level the playing field, and are able to achieve a higher selling price.

A 8: By providing a professional analysis of the targeted business, and absorbing the expenses to complete the initial stages of the transaction without either buyer or seller being obligated to continue, the buyers see a real value in Washburn & Associate's service.  Looking at the overall picture, in the long run, Washburn & Associates saves buyers an incredible amount of money by completing numerous searches across the country at our expense.  The sellers' receive a better price, and the buyers do not end up over paying, but instead pay a fair price for a business in an area that they have targeted.  It should also be noted due to our longevity in the pharmacy industry, and our numerous established relationships, our buyers know that if they do not offer a fair price, Washburn & Associates has the contacts and resources to take the deal to another established buyer.

A 9: When the sell price is below one million dollars, the commission is 10%.  Your neighborhood business broker, who does not specialize in pharmacies, typically charge 10% to 15% and typically do not have a qualified buyer on hand.  When the sell price is more than one million dollars, Washburn & Associates is willing to negotiate slightly on the commission

A 10: Washburn & Associates has successfully completed deals with many of the major chains along with numerous smaller, or regional chains, and private individuals.  Washburn & Associates is a member of the International Business Brokers Association, has a license to do business in Henrico County, VA under the name of Washburn & Associates, a division of E-Com Consulting, Inc.  The state of Virginia can also be contacted to verify that we are a corporation in good standing.  We are happy to provide names of past clients.  However, due to "Confidentiality" and "Non Disclosure" agreements, references from past transactions are only given to serious sellers.  Our past clients are typically individuals of private businesses who are not interested in receiving constant calls on our behalf.  We ask that if you do contact one of our sellers that courtesy be given, they are not part of our marketing arm.

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