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Key Drivers To Augment The Selling Price Of Your Pharmacy Business

Two Key Drivers That Can Augment The Selling Price Of The Business
BY Jaspreet Kaur
Feature Writer, BusinessEx
Nov 23,2018

Reselling a business is the tough decision for an entrepreneur. Having a rough time in the business, constant reduction in the sales, and facing tough competition from rivals- are a few situations which lead to resell the business. This situation can arise any time in any business, leading despondency in the entrepreneur. Despite that, sometimes reselling the business is the safer option than leading an unprofitable business for long. Even, the Indian pharmaceutical industry which is one of the largest suppliers of generic drugs often sees ups and downs in the course.

These abrupt inflations majorly affect small, as well as medium-sized pharmacies, enforcing many enterprises to cease its operation or put their pharmacy business for sale. While reselling the business, every entrepreneur except a good value of their business and thus looks for a righteous candidate. As years have been invested in standing out the business, thus the expectation of the pharmacist is also high pertaining to the market value. Whilst a buyer wants the pharmacy business at the lowest price possible owing to his budget and secondly, depreciated value of the business. These situations are quite banal in the industry; many sellers imply the right methodology to get the best price whilst others settle the deal at a low price.

Key Drivers To Increment The Selling Price Of The Pharmacy Business    

To get the quoted price is not easy, especially when a specific industry is going through a rough phase.  In order to tackle the struggles, it is recommended to work on the key factors which greatly impact the value of the selling business. These factors enhance the overall worth of the business and thus, attract better prospects. Generally, risk and price share an inverse relationship.  If the risk involved in the business is higher, then the lesser price would be offered by buyers. To neutralize the picture as well as repair the stature of the business, it is important to adhere to some of the key factors.

  1.    The Financial Backdrop Of The Business

Financial background is the major testifying device to estimate the value of the business. While investigating the business, the buyer invariably seeks the revenue generated by the business. In order to make an impactful mark, it is important for the pharmacist business to have stabilized revenue over the years. Besides this, the revenue should equalize the revenue of the other top line businesses in the industry or else, the valuation process would be polished off at a lower price.

Therefore, the seller should present a better picture of the business and secondly, put the pharmacist business on sale only during the peak season.

  1.    Growth Element

Growth is the core factor that is assessed during the valuation process. Owing to which, it becomes somehow mandatory to not overlook this factor and work on to increment its presence in the business. If the growth level in the business is balanced or may rise higher, it increases the propensity of getting better prospects for the pharmacist business. In the inverse scenario, it is hard to get good acquirers for the business.

Work on these two key drivers to receive better selling prices of the pharmacist business.

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