Industry
Roll-Ups are where an industry’s many players are consolidated into smaller
groups for economic benefits. Recessions, new government regulations, or other
aspects of the industry that may be stifling profits end up providing
incentives to consolidate
A principal
reason for an industry roll-up is to achieve economies of scale in purchasing,
marketing, information systems, logistics, distribution, and top management.
Consolidated businesses also have less risk from the impact of an unsatisfied
customer and have the reward of being able to recruit, or keep, key employees.
There
has been an industry roll-up happening in the pharmacy industry for a number of
years. It is a well-established industry and is still experiencing sales
growth. However, pharmacies and drug stores have seen a steady decline in their
profit margins due mainly to government regulations, even as sales increase.
When
a Florida (FL) Pharmacy Owner is considering selling their business there are a
number of things to consider, such as there are fewer buyers in today’s market.
Due
to national issues, as a small business owner you are faced higher capital
gains tax along with other additional tax increases. Higher taxes on the
business and your customers will not increase your business profits.
Nationwide
most pharmacy owners are working longer hours to earn the same amount of income,
and they are required to jump through more hurdles.
Selling
a pharmacy in Florida is a complicated and regulated process that involves many difficult
decisions. Handled properly, a pharmacy owner will deposit a large sum of money
into the bank. However, handled poorly, it can become a laborious and costly
chore. PharmacyValuations.com
provides you expertise and a positive advantage.
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