By Brad MacLiver
Authorship and profile at Google
With the current market conditions many FL pharmacy owners are experiencing lower profit margins and have considered selling their drug stores after a professional business valuation has been completed. AFlorida
Estate Planning is a topic many people avoid. For the pharmacy owner who works 6 days a week, takes very few vacations, fills scripts all day, then mops the floor and does the books at night, there usually isn’t much time to consider additional things such as estate planning. However, knowing that there will eventually be a transfer of the business, it is important for the pharmacy owner inFlorida
Developing a plan to transfer the business will require a lot of time, but it will allow the business to be successfully transferred in an acceptable manner if done correctly. An estate plan for aFlorida
Estate planning allows pharmacy owners to arrange for and anticipate the transfer of the drug store. The plan will be formatted in a way which attempts to eliminate uncertainties, help the transfer by trimming expenses, and reduce taxes.
The full process may involve Wills, Trusts, Living Wills, Power of Attorney, Medical Power of Attorney, Business Valuations, Life Insurance, Charitable Remainder Trusts, Buy-Sell Agreements, and various other legal documents. All of these different aspects of estate planning are to provide pharmacy owners inFlorida
When non-family members operate as partners in the drug store business, it is crucial that the estate planning incorporate a Buy-Sell Agreement. Buy-sell agreements govern the transfer of businesses between pharmacy partners. The agreement may also be referred to as a partner buyout agreement or business will. In the event of a partner's death, the buy-sell agreement may be funded with a life insurance policy to help protect the family.
Estate planning, buy-sell agreements, and the transfer of the Florida pharmacy should incorporate a pharmacy business valuation completed by a third party that has expertise in the pharmacy industry, performs a large number of pharmacy business valuations each year, and has current industry data as a basis for the conclusions. Using simple accounting formulas, multipliers, and valuators inexperienced in pharmacy will not provide an accurate business valuation.
Most pharmacy owners in FL spend a major part of their life building the business. The efforts should not disappear because the pharmacy owner refuses to accept their mortality and plan accordingly. The only pharmacist in some small pharmacies is the owner. If the scripts can’t be filled by a licensed pharmacist then by law the customer files must be transferred to another pharmacy. Due to this, a pharmacy’s business value may drop to a negligible figure in just a few days after the passing of the owner. Contingencies outlined in an estate plan should address this issue. Unfortunately due to not having an effective plan in place, each year a number ofFlorida
Tips:
1. When the family drug store is the sole means of income for several family members it becomes even more crucial to have a succession plan in place.
2. To avoid disputes, estate plans should be developed with clear directives.
3. Minimizing tax liabilities is a major objective for most completing an estate plan, therefore expert tax advice should be sought.
4. Many on-line documents and books are available that provide advice and documents for developing an estate plan. When going the self-help route, it is advisable to have a paid expert review the completed documentation to ensure that it can be legally complied with when the time comes.
5. While developing the estate plan it is essential to talk with children and other family members of the pharmacy owner inFlorida
Authorship and profile at Google
With the current market conditions many FL pharmacy owners are experiencing lower profit margins and have considered selling their drug stores after a professional business valuation has been completed. A
Estate Planning is a topic many people avoid. For the pharmacy owner who works 6 days a week, takes very few vacations, fills scripts all day, then mops the floor and does the books at night, there usually isn’t much time to consider additional things such as estate planning. However, knowing that there will eventually be a transfer of the business, it is important for the pharmacy owner in
Developing a plan to transfer the business will require a lot of time, but it will allow the business to be successfully transferred in an acceptable manner if done correctly. An estate plan for a
Estate planning allows pharmacy owners to arrange for and anticipate the transfer of the drug store. The plan will be formatted in a way which attempts to eliminate uncertainties, help the transfer by trimming expenses, and reduce taxes.
The full process may involve Wills, Trusts, Living Wills, Power of Attorney, Medical Power of Attorney, Business Valuations, Life Insurance, Charitable Remainder Trusts, Buy-Sell Agreements, and various other legal documents. All of these different aspects of estate planning are to provide pharmacy owners in
When non-family members operate as partners in the drug store business, it is crucial that the estate planning incorporate a Buy-Sell Agreement. Buy-sell agreements govern the transfer of businesses between pharmacy partners. The agreement may also be referred to as a partner buyout agreement or business will. In the event of a partner's death, the buy-sell agreement may be funded with a life insurance policy to help protect the family.
Estate planning, buy-sell agreements, and the transfer of the Florida pharmacy should incorporate a pharmacy business valuation completed by a third party that has expertise in the pharmacy industry, performs a large number of pharmacy business valuations each year, and has current industry data as a basis for the conclusions. Using simple accounting formulas, multipliers, and valuators inexperienced in pharmacy will not provide an accurate business valuation.
Most pharmacy owners in FL spend a major part of their life building the business. The efforts should not disappear because the pharmacy owner refuses to accept their mortality and plan accordingly. The only pharmacist in some small pharmacies is the owner. If the scripts can’t be filled by a licensed pharmacist then by law the customer files must be transferred to another pharmacy. Due to this, a pharmacy’s business value may drop to a negligible figure in just a few days after the passing of the owner. Contingencies outlined in an estate plan should address this issue. Unfortunately due to not having an effective plan in place, each year a number of
Tips:
1. When the family drug store is the sole means of income for several family members it becomes even more crucial to have a succession plan in place.
2. To avoid disputes, estate plans should be developed with clear directives.
3. Minimizing tax liabilities is a major objective for most completing an estate plan, therefore expert tax advice should be sought.
4. Many on-line documents and books are available that provide advice and documents for developing an estate plan. When going the self-help route, it is advisable to have a paid expert review the completed documentation to ensure that it can be legally complied with when the time comes.
5. While developing the estate plan it is essential to talk with children and other family members of the pharmacy owner in
