Listing ID: 76831
Business Overview
Welcome to beautiful Carlsbad, San Diego County! This independent compounding pharmacy, founded in 1991, is in a modern medical building (built in 2015) and located only 4 blocks from the beach. The medical building has over 11 medical practices and over 55 prescribers, including the Neurology Center of Southern California, Sleep Center, Imaging Center, Pain Clinic, Psychiatric Office, Chiropractor, Physical Therapy, Dermatology, Acupuncture, Dentist, Orthodontics, Pain Clinic, ENT Specialists and Urgent Care.
This is a great opportunity to invest in and operate a modern retail pharmacy with compounding capabilities. The current pharmacy staff includes one PharmD/PIC, one Tech and 1 clerk. Open 5 days a week. Excellent lease terms and options. The pharmacy recently upgraded to PioneerRx software and new computer equipment. The pharmacy is about 700sf with over $150K spent on tenant improvements, complete with custom Herman Miller workstations to allow for seamless, transparent workflow. The 24/7 alarm and video system is remotely controlled and app-enabled. All records are meticulously organized and maintained. The pharmacy has very efficient flow and has a compounding area.
All major insurances and Medi-Cal are accepted with all contracts in-place. The pharmacy dispenses compounding meds and a high percentage of generics. Current rx volume is about 20 scripts and 3-5 compounds per day, most of which having high profit margins. Wholesalers are McKesson and Trxade In 2020, total revenue was $720K and all licenses and insurance contracts are in good standing
The owner has not marketed the pharmacy for the last 30 years. This is a great opportunity to expand the business through marketing towards local RCFEs, LTCs and Assisted Living Facilities, etc. There is also an open lot across the parking lot with plans to build a sister-medical building adjacent to the current building as well as the Aviara Apartment Project totaling 259 housing units.
In 2018, the current owner launched a proprietary line of CBD products, TRU Leaf Labs, sold at the pharmacy location (CBD display wall at entrance). All products are pharmacist-formulated and compounded on premises by certified compounding technicians. The line includes 9 CBD oils, 2 CBD topicals, and 4 terpene sprays. The CBD products have a high profit margin and repeat customer base. The owner is currently investigating an expansion into beauty treatments and CBDA & CBGA offerings, to be produced and sold in the premium market. The CBD business is a great source of foot traffic as many walk-in patients visit the pharmacy in search of CBD products after visiting doctors offices and the Imaging Center next door.
The pharmacy is competitively valued at $250K plus inventory (estimated to be around $25K). The asking price includes the option to wholesale TRU Leaf Labs products to continue selling at the pharmacy location. The buyer would benefit from 60% of MSRP pricing for CBD products as well. The seller is retiring. PIC may stay if needed for a reasonable amount of time. Seller is ready and available to assist in a transparent and seamless transition to the next buyer.
Call Alex Levitan- Pacific Business Brokers, and request an NDA. 818.640.8080
Financial Statements, Inventory Count, and any additional information will be gladly presented to qualified buyers during due diligence. Proof of funds is required. Seller is motivated. All of the above information per Seller please rely on your own due diligence on market conditions and this industry before making any commitment and decision making.
Financial
- Asking Price: $249,000
- Cash Flow: $182,000
- Gross Revenue: $710,000
- EBITDA: $182,000
- FF&E: $50,000
- Inventory: $25,000
- Inventory Included: N/A
- Established: 1991
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:700
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Seller will train
Retiring
Additional Info
The business was started in 1991, making the business 31 years old.
The deal shall not include inventory valued at $25,000*, which ins't included in the suggested price.
The company has 2 employees and resides in a building with approx. square footage of 700 sq ft.
The building is leased by the business for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. However, the real factor and the one they tell you may be 2 completely different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is really important that you not depend entirely on a vendor's word, but rather, utilize the seller's response along with your general due diligence. This will paint an extra sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover things like stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract brand-new customers? Often times, businesses have repeat clients, which create the core of their everyday profits. Particular factors such as new competition growing up around the location, road construction, and personnel turnover can impact repeat consumers and also adversely affect future profits. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning client base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Exactly how might the local mean house income influence future income potential?
