FAQs Specialty Pharmacy

Is this a good time to sell my Specialty Pharmacy (“SP”)?

2019-05-13T22:11:40+00:00

We instruct owners and operators that they have to make this decision. Here is what we know with the independent SP’s we have represented through a sale: The competitive landscape is very treacherous. The largest pharmacies own the majority of the market share and they don’t want smaller independents getting in their way. Moreover, [...]

Is this a good time to sell my Specialty Pharmacy (“SP”)?2019-05-13T22:11:40+00:00

Are Specialty Pharmacy valuations decreasing?

2019-05-13T22:11:50+00:00

Yes. With the continued consolidation, the top 4 specialty pharmacies have over 70% of the revenue market share. This makes it a buyers market. PBMs, most of whom are owned by the aforementioned large specialty pharmacies, continue to put a strain on the cash flow of the independent operators. There is also tremendous uncertainty [...]

Are Specialty Pharmacy valuations decreasing?2019-05-13T22:11:50+00:00

Who will buy my specialty pharmacy?

2019-05-13T22:12:05+00:00

Strategic: Of the big 4 (CVS; ESP; Walgreens; OptumRx) we only see CVS putting in competitive bids with independent sellers less than 100MM in revenue. Walgreens is making moves in an effort to keep up with CVS, but they are no where near as effective. We have not worked with the other two, but [...]

Who will buy my specialty pharmacy?2019-05-13T22:12:05+00:00

How can I improve the value of my Specialty Pharmacy?

2019-05-13T20:59:38+00:00

We instruct owners and operators that they have to make this decision. Here is what we know with the independent SP’s we have represented through a sale: The competitive landscape is very treacherous. The largest pharmacies own the majority of the market share and they don’t want smaller independents getting in their way. Moreover, [...]

How can I improve the value of my Specialty Pharmacy?2019-05-13T20:59:38+00:00

What types of Financial Buyers are there for Specialty Pharmacies?

2019-05-23T00:10:47+00:00

Traditional Private Equity. Be ready for the treaded Quality of Earnings and an over engineered acquisition agreement. Family Office.  Patient capital.  Long holds.  Not much industry expertise. Independent Sponsor or Fundless Sponsor.  Will get capital to acquire once the deal is secured.  Will probably have a principal who will come in to learn the [...]

What types of Financial Buyers are there for Specialty Pharmacies?2019-05-23T00:10:47+00:00
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