Valuation Methods for Pharmacies
Our client needed a valuation for the purchase of a pharmacy. A valuation is crucial to determine a reasonable purchase price range for a business. Several methods, adjusted specifically for pharmacies, had to be used to arrive at a valuation. The methods used were Enterprise Value, VC Method, Discounted Cash Flow Method, and the Multiples Methods based on historical financial statements. Then an average was taken from the calculated values to arrive at a valuation.
Starting a brand new business is not the only entry into entrepreneurship. Purchasing an existing business is another viable method of entrepreneurship because oftentimes, there is an existing customer base, name recognition, equipment, vendors, licenses/permits, and other operational systems in place. Furthermore, nothing is preventing the new owners from
Launch and Grow Your Pharmacy Business
Pharmacy or not, no matter what business you are considering, contact Your Startup Guru to know that you’re getting a reasonable price for the company.