2017 $2.62MM Sales $307K EBITDA
Customers and Markets
The Company opened its doors in 2003 and provides over the counter and prescription medication products for ambulatory customers (96% of sales) and long-term care customers (4%). The Company has 8,314 customers in its client base, with 2,688 identified as active/recurring customers. Approximately 90% of the Company’s revenue is from repeat business.
|Cash Flow:||$417,000 SDE|
The Company has 2 full-time and 8 part-time employees. The Company’s key employees include an RPh ($58,000), and two support team members ($30-33,000). The owner is a full-time pharmacist with an annual salary of $110K, and open to a long term position post-sale of the business.
Facilities and Equipment
The pharmacy is 2,000 square feet and owned by the shareholder/related party. The facility is leased at a fair market lease rate. The lease includes the drive through at a key location in this small Iowa town. The Company has state of the art computing and customer relationship/prescription management software.
Competition & Differentiating Features
The Company’s competition includes but is not limited to one local independent (roughly half the size), Walgreens, HyVee Pharmacy, and any mail order pharmacy. The Company is one of two pharmacies in this town, and the only with convenient drive-through, easy and plentiful parking and happens to be in a highly visible retail location. The staff has a broad range of knowledge not only in traditional pharmaceuticals and their clinical use, but also supplements and alternative medicinal approaches, such as homeopathic and herbal remedies. The Company goes the extra mile for customers: helping them find their insurance coverage, placing special orders for next day pick up or delivery, working through insurance rejections with customers and providers, and help desks, while maintaining good communication regarding prescription status. Short wait times (usually less than 15 minutes). Unique, convenient, and reasonably priced strip packaging for retail customers. Convenient refill service through the website and/or mobile phone app. Convenient Prescription Synchronization. The Company cares for its customers and gives individual attention to help customers meet their therapeutic goals. The Company is a founding member of the Iowa Community Pharmacy Enhanced Services Network (CPESN of Iowa) and strives to improve customer care, minimize adverse events, and keep customers healthy and out of the hospital.
Strategic Growth Opportunities
The established business practices refined by the Company are expected to yield continued organic growth going forward. Management cites several opportunities to accelerate this growth trend over the next few years.
Add Specialty Pharmacy Services
Attain certification, hire additional staff, and consider the needs for specialized software. This will expand the customer base and market, as well as lead to larger profit margins on these high priced medications.
Add Compounding Services
Hire a pharmacist who has expertise and desire to develop the compounding specialty. This will increase profit margins as the need for compounding increases. Currently the Company refers clients to other compounding pharmacies.
Expand Strip Packaging
Leverage the robotics sorting and packaging equipment further with an external marketing campaign supported by a new outside sales person. This will expand the customer base to other product suppliers (as opposed to only prescriptions for the Company’s customers), improve the workflow efficiency, and increase revenue.
Capitalize on Affiliation with Iowa’s Community Pharmacy Enhance Services Network
Gain referrals from public health, physician offices, home health, and other professionals. Also, receive payments from third party insurers such as Wellmark BCBS of Iowa.
This Merger & Acquisition Opportunity is available via Marigold Resources' Senior Affilate Partner status with Generational Equity.
Upon receipt of this completed and digitally executed NDA below, we will follow up by phone and/or e-mail to qualify providing the complete offering memorandum and schedule a time to discuss the opportunity further.