Estate Planning in Florida for Pharmacy Owners

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. A Florida pharmacy industry roll-up has been occurring for a number of years, consolidating the pharmacy seller’s customer traffic into fewer pharmacy locations. However, there are a number of pharmacies that are not in a geographic location with other nearby pharmacies, so consolidation can’t take place. Some pharmacy and drug store owners, despite where they are located or what is happening in the industry, have taken a stance and won’t consider selling. However, just like paying taxes, an exit of the business, is eventually inevitable.

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 Florida to consider a proper succession plan for the pharmacy business.

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 Florida pharmacy owner does not need to be an inflexible process; adjustments, updates, and amendments are advised as government regulations, economic conditions, and personal expectations change.

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 Florida coordinated directives.

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 Florida pharmacy owners die and their family is left with an asset with very little value.

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 Florida especially if there are some family that work in the business and others that don’t.



 

Florida Pharmacy Franchise Financing

By Brad MacLiver
Authorship and profile at Google


A Florida (FL) pharmacy franchise is a contractual relationship between two parties. One, the Pharmacy Franchisor is the party that developed their drug store business model, branded the pharmacy related products, and produced the system the pharmacy franchisees will operate under. The second party, the Pharmacy Franchisee, purchases a franchise license from the Pharmacy Franchisor, and usually pays an ongoing pharmacy franchise fee, or royalty fees, to use the name, products, systems, trade secrets, etc., created by the Florida Pharmacy Franchisor.

Several options are available for the financing of a pharmacy franchise business. All pharmacy franchise funding sources for pharmacies or drug stores prefer to lend to a franchisee who works with a nationally recognized name and with long track records. Newer pharmacy franchise models in Florida don't possess either of these two traits and will be considered risky.

Traditional Bank Financing used in funding a pharmacy franchise is available when a pharmacy franchise has the track record and pharmacy name recognition. Many of the banks will show interest in this type of funding opportunity. Unfortunately once the bank reviews the loan documents, many of these banks decline the funding request because they don’t understand the security provided for the Florida pharmacy loan. Community drug stores typically have very little traditional assets to offer as security. Lenders for pharmacy will use traditional methods for analyzing the cash flow available to service to the debt, and they will also need to understand the nontraditional collateral that will secure the loan.

As a borrower, even when incorporated, the independent drug store owner’s personal credit rating will be a factor, along with personal tax returns, and financial statements. The amount of actual cash on hand and the verification of the source of the down payment will be critical factor in qualifying for a pharmacy business loan.

FL Pharmacy Franchise Funding Tips:

1. Because there are many pharmacy franchise financing options available, Florida pharmacy owners should perform proper due diligence then obtain the pharmacy funding that best suits their situation.

2. It is recommended to have an accountant or attorney that is familiar with Florida pharmacy franchise financing to review the pharmacy business loan documents.

3. There are pharmacy consulting services and franchise associations who can help guide a prospective pharmacy franchisee or borrower or a drug store loan.

4. New independent drug store owners in Florida need to make sure their funding request is enough to get the pharmacy running and profitable. Less than ample funding for the initial stages may put the drug store in a position of needing additional funding. Smaller working capital loans that would be in a subordinated position will be more difficult to obtain at a later date.

When FL pharmacy owners have questions and need information regarding pharmacy franchise business loans, business valuations, or any types of funding for community drug stores and pharmacies, they should contact a pharmacy industry specialist in Florida who can provide quality answers and sound advice.

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Purchase & Sale Agreements in Florida

By Brad MacLiver
Authorship and profile at Google


A Pharmacy Listing Agreement is the contract that provides a pharmacy broker the Florida business seller’s permission to sell their drug store. During the process of presenting the business being sold to qualified drug store buyers there are negotiations and preliminary offers.

Once the preliminary stages have been negotiated it is time to put forth the details of the potential Florida pharmacy transaction in contract form. This contract is usually called the Purchase and Sale Agreement, but it may also be referred to as an Asset Purchase and Sale Agreement, Pharmacy Asset Purchase Agreement, Asset Purchase Agreement, or variations of these contract titles. Whatever the title is on the contract, this document should be considered the “blueprint” for transferring the pharmacy business to the new owner.  

The Pharmacy Purchase and Sale Agreement gives detailed information regarding how much the buyer agrees to pay and what assets the seller in Florida is conveying to the buyer.  Once the agreement is put in writing, describes the transaction in detail, and is then accepted and signed by both the seller in Florida and buyer, this contract is then a legally binding agreement.  Keeping this in mind, proper diligence should be taken during the negotiation process of the Pharmacy Purchase and Sale Agreement.

Due to liability issues it is seldom that a pharmacy’s corporate stock will be purchased. Therefore, these transactions almost always are only asset purchases.

Elements of the Pharmacy Purchase and Sale Agreement include, but are not limited to: all assets being purchased or excluded, any aspects of purchasing and counting the inventory, both hard and electronic copies of any pharmacy customer files, liabilities, the purchase price and closing date, the title transfer of the assets being purchased, pharmacy customer file conversion, representations and warranties, non compete, restrictive covenants, transferring the phone, notifying customers, signs, Board of Pharmacy notification, accounts receivables, employment of business seller and pharmacy employees, confidentiality, counting the pharmacy’s inventory, costs associated with the closing, lien searches, actions to be taken before the date of closing, along with the pharmacy’s computers, office equipment, and any automated filling machines.

Although it covers many aspects of transferring the business assets from the Florida pharmacy seller to the new owner, it should be understood that the Purchase & Sale Agreement does not provide tax and legal guidance for the Florida seller. Those issues do not pertain to the buyer of the assets. Therefore, the pharmacy seller should be well advised by a knowledgeable pharmacy broker, accountant, or attorney regarding tax consequences, restrictive covenants, and the structure of the deal. These aspects of the deal may not have any impact from the buyer’s point of view, but if not considered carefully may have affects to the seller’s financial position after the transaction is closed.

Pharmacy owners in Florida who are considering selling will benefit when working with a specialist who operates exclusively in the pharmacy industry and can provide expert guidance in bringing about a transaction that provides the most benefits regarding the seller’s tax consequences, family and estate planning. Proper planning and a blueprint that structures the transaction appropriately will increase the net amount of money the seller receives for the pharmacy’s assets.

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Learn more about the pharmacy acquisition process and discover things to look for an what to avoid when you are considering buying, selling, or financing a pharmacy by visiting www.BuyingAndSellingPharmacies.com

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Pharmacy Acquisitions and Florida EBITDA

By Brad MacLiver
Authorship and profile at Google


EBITDA is an acronym which means: Earnings Before Interest, Taxes, Depreciation and Amortization.  EBITDA is often used to measure the value of some businesses and in the comparison of similar companies.

EBITDA typically makes it easier to evaluate various companies and to compare them against industry averages by removing the non-core and irregular operating costs like as interest (which can vary depending on the management’s choice of financing), taxes (which can fluctuate depending on acquisitions or losses from prior years), and arbitrary factors of depreciation and amortization.

The formula for EBITDA can be seen as a guideline when valuing larger companies or when comparing the profitability of large similar companies in the same industry.

For the effective use of EBITDA, these larger companies should possess significant assets, have heavy amortization schedules, or bear substantial amounts of debt. Considering independent pharmacies don’t meet that criteria, this formula is not a useful measure as the sole means for valuing Florida pharmacies for acquisition purposes.

Here is what needs to be calculated for EBITDA: 1. Net income can be calculated by obtaining total income and subtract total expenses.
2. Total amount of taxes paid to federal, state, and local governments.
3. Interest fees paid to companies or individuals for the use of credit, or capital.
4. Cost of depreciation, or the expense recorded to allocate a tangible asset's cost over its useful life.
5. Cost of amortization, or the expense for consumption of the value of intangible assets (such as goodwill, patents, and copyrights) over a the asset's expected life or specific period of time.

Finally, add steps #1 through #5.

EBITDA calculation example:
1. Net Income            1,070
2. + Taxes paid            308
3. + Interest Expenses     210
4. + Depreciation          104
5. + Amortization           52
6. = EBITDA              1,744

Drawbacks of EBITDA: 1. Can be misleading number when it is confused with cash flow.
2. Can make even completely unprofitable firms appear to be financially healthy.
3. Numbers are easy to manipulate.
4. Can overlook cash requirements for growth in accounts receivable.
5. Can miss cash requirements for growth in inventories.
6. Not factual when valuing small companies.
7. Not effective for companies with few assets, small amounts of debt, or low depreciation or amortization schedules.

During the 1980s EBITDA was being used as a proxy for cash flow in leveraged buyouts to calculate whether companies could service their debt. Factoring out interest, taxes, depreciation, and amortization can allow an unprofitable business to appear financially healthy. This method of valuation was used extensively during the dotcom era to value unprofitable businesses, with few assets, little earnings, and the results from that method caused many to go bust. This was a blaring example of misapplying EBITDA.

Pharmacy specialists who are knowledgeable and performing pharmacy business valuations in FL will use EBITDA in pharmacy valuations, but this will only be a part of a larger formula when computing values for specialty Florida pharmacies especially those who have a niche in HIV, disease management, long term care, etc. However, EBITDA should not be used as part of the usual formula for standard retail pharmacy acquisitions.

The EBITDA number for a specific existing pharmacy in FL is, for the most part, important when the existing ownership is establishing their store value for the purposes of a credit line, borrowing, creating a Trust, stock values, etc., but EBITDA does not have the same importance when selling a Florida pharmacy. This is due to the fact the buyer will not have the same expenses as the seller.

Buyers may not have the same tax base, interest expense, or the same depreciation schedule. It is thusly important that the buyer estimate an EBITDA that is specific to their operating model, business systems, buying power, cost of operations, etc., not the sellers. It should also be noted that EBITDA assumes that the buyer will acquire all of the assets, working capital, accounts receivable, and liabilities. Those assumptions do not hold true regarding an acquisition of a pharmacy. Instead of the EBITDA number, Florida pharmacy buyers should be focusing on sales, gross profit, cash flow, and customer mix.

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Florida Pharmacy Acquisition Finance

By Brad MacLiver
Authorship and profile at Google


When a Florida (FL) pharmacy or drug store is being sold, buyers will seldom pay “out of pocket” cash for the acquisition. Even when cash is available, pharmacy acquisition strategies usually involve financing the purchase of the drug store.

Typical acquisitions take 6-12 months to complete, so the pharmacy seller in Florida will need the buyer to provide some proof up front about their ability to close the transaction. Acquisitions will involve many hours of due diligence and negotiation, so the process should involve qualified parties.

The acquisition will involve many parties in addition to the seller and the buyer.  These parties include attorneys, accountants, lenders, valuation companies, industry specialists, and other professionals. No one wants to pursue 6-12 months worth of work that involves a variety of highly paid professionals without having some degree of confidence of the Florida pharmacy buyer’s ability to close the deal.

The acquisition process will start with determining the value of the business. Many companies offer valuation services, but pharmacies are a different from most businesses. There are several aspects to the valuing of pharmacies that are unique to the industry, and generic valuations or simple accounting formulas should be avoided.  Industry specialists should be consulted when valuing the Florida pharmacies instead of a valuation company that has a broader spectrum.

In order to complete a valuation the selling company needs to provide up-to-date data. Lenders will not accept old data, or a sellers “gut feeling.” Lenders need to make a decision to finance based on sound and verifiable information.                

Structuring the transaction is extremely important. The seller of course wants as much money as possible and wants cash. The buyer needs to spread out the debt service and wants to have as little cash as possible invested in the acquisition.

Pharmacies and drug stores are in an industry where it is more difficult to obtain business loan due to the majority of the value in a FL pharmacy is the customer files and not hard assets. Therefore, for the acquisition to be financed a lender will need a strong understanding of the industry and what, beyond the collateralized assets, the company offers to reduce the perceived risk.

FL pharmacies have typically been known for generating profits and to be stable businesses. However, they are usually in leased locations, and their furniture, fixtures, and computers will only provide $15-20,000 of collateral for a buyer possibly requesting a million dollar loan. A lot of money is tied up in inventory, but the small pills are considered by a lender to easy to move out the door in the event of default. Due to these circumstances many lenders will not loan money to these traditional money making businesses. A successful transaction takes a lender that understands the Florida pharmacy industry.

Tips regarding Florida pharmacy acquisitions and finance:
1. Attorneys and CPAs who have been representing the FL pharmacy seller for many years may see the transaction as putting themselves in a position of losing a client when the business is sold. Make sure they are working diligently on the transaction and are not slowing or undermining the process

2. Since pharmacy acquisitions involve 6-9 months of work to complete , all parties involved need to be aware of time tables. Much too often, items of importance end up sitting on the desk of someone that is outside of the control of the buyer or seller.

3. All financial information needs to be current. Over the lengthy process the data supplied to both the buyer and the lender will need to be updated on a continuous basis. Things can change drastically during a nine month period and the Florida pharmacy seller will need to continually prove the financial condition of the company.

When pursuing “pharmacy acquisition finance,” for the best chance of success, make sure the valuation company and the lender have expertise in that industry. Choose a company that has the pharmacy experience and expertise, and is a direct correspondent with lenders who understand Florida pharmacy.

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340B Discount Programs for Florida Pharmacies

By Brad MacLiver
Authorship and profile at Google


The U.S. Department of Health and Human Services provides a program for discounted prescription drugs to qualified Federally Qualified Health Centers (FQHC), Disproportionate Share Hospitals (DSH), and other qualified entities. When these facilities don’t have their own pharmacies they are allowed to contract with a local FL pharmacy. The drug pricing program is often referred to as 340B, named after the section of the law that established the program.

Section 340B legislation was enacted to provide indigent and uninsured populations access to deeply discounted medications. Because the program was enacted to help specific populations, restrictions and regulations are in place that dictate how the program operates and who the medications can be dispensed to.

Pharmacies in Florida can be contracted by a FQHC or another 340B qualified entity to dispense and manage the medications. Patients from these entities provide increased traffic in the FL pharmacies, allowing the pharmacies an opportunity for additional front end sales in addition to the Rx sales.

Pharmacy owners who participate in 340B pharmacy programs need to manage their business consistently with customary business practices. The pharmacy should have dispensing and inventory records, billing statements, etc in the event of an audit. Business records should show that drugs purchased by customers, under the 340B Drug Pricing Program, were not diverted to people who are not part of the program.

Along with the additional record keeping a Florida pharmacy owner will need employees who understand the various state and federal rules and regulations, which govern the 340B program. The FL pharmacy will also need to have a location for the 340B inventory, which is separate from their normal inventory, or have a software management system to track the separate inventories.

A system of separating the inventory is required due to the drug inventory used for the 340B pharmacy program is owned by entity that contracted the pharmacy. Since the 340B inventory is not “owned” by the pharmacy this inventory will be treated differently for tax purposes. The pharmacy generates income from dispensing fees they are paid instead of a mark-up or profit margin on the inventory.

Since customers participating in a 340B program can only purchase the designated medications from a pharmacy contracted with a 340B entity, this allows a pharmacy to have a market niche. A contracted pharmacy servicing 340B customers benefit from additional customer traffic visiting the store.

With the current economic situation and high unemployment, many people have lost their insurance benefits. This will likely expand the need for 340B pharmacy programs and provide additional 340B customers to a participating pharmacy in Florida.

However, when a pharmacy owner is weighing the potential benefits of a 340B program, they should also consider other aspects of their business and the current market conditions of the Florida pharmacy industry. What are the FL pharmacy’s goals over the next couple years? A younger pharmacy owner with long term objectives can benefit for many years from the added customers. However, a pharmacy owner considering selling the business in the next couple years should be aware that acquisition values are based on the customer files, and many buyers are not currently willing to include 340B customer files in their offers. This results in a lower pharmacy business valuation and market price for the pharmacy despite the volume of business. Also, due to the current economic conditions there are some 340B customers who despite the deeply discounted prices, have chosen not to purchase medications. Pharmacy owners need to consider the added costs and time of 340B inventory and customer tracking and reporting, may not be offset by the fees received.

If a pharmacy owner in FL is considering the benefits of participating in a 340B program, or is considering selling the pharmacy in the couple years, it is advisable to discuss the options with a pharmacy industry expert.

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Pharmacy Transactions and Capital Gains Tax for Florida

By Brad MacLiver
Authorship and profile at Google


What is a capital asset and how would it affect you, a Florida pharmacy business owner in selling your pharmacy?

In this case, just looking at a Florida pharmacy business and not the personal possessions of the pharmacy owner, if the Florida pharmacy owner decided to sell their business, it now becomes the “capital asset.” Now the pharmacy owner would look at the variance in the price they paid for the pharmacy business (the basis), and the amount the pharmacy business sells for, whether for profit or loss, and this is considered a “capital gain or loss” by the federal government and must be reported and can be taxed.

Investment income is another way capital gains may be referred to due to its relation to real assets, such as financial resources, property, and intangible assets, such as goodwill.

With the current economic down turn, the ability to locate financing for a potential Florida pharmacy business buyer is more difficult and will be in lesser amounts if attained; and selling the pharmacy business for solid profit is extremely difficult. Couple this with the probability the seller of the Florida pharmacy business may have to reduce the asking price to allow buyers the ability to attain financing, and even more importantly, still pay a higher percentage of taxes.

How can an owner of a Florida Pharmacy business combat these issues? Believe it or not, there are some good strategies out there to do just that, but first the pharmacy owner needs a specialist in the pharmacy business industry that knows these strategies and tools. Washburn & Associates are these specialists that know the in and out of selling a Florida pharmacy for the greatest profit available, while paying the least in taxes.

One tool, but not the only one, available is the “Charitable Remainder Trust” or CRT; this used to help with the capital gains tax burden.

Now, what is a CRT? Legally described as “Split Interest Trust,” which are used due to the mix of charitable giving and personal financial positions; CRT’s may lesson the tax liabilities, enhance the pharmacy business owners finances while allowing for charitable donations.

Charitable donations create a CRT when a pharmacy owner donates from their own assets, such as money, real estate, and so forth, and are donated to this special type of Trust. This trust is put in place for a specific time period or until the donor’s death; and during this period the pharmacy owner may receive income and if desired, purchase life insurance to provide for their heirs after they are gone from this Trust’s assets, and without state tax liability. Remember, CRT’s are there for use by financial specialist in the pharmacy business industry, such as Washburn & Associates, to increase the pharmacy owner’s assets and charitable donations by understanding the federal government’s strict and complex tax laws covered in the Internal Revenue Code 644, that say when and how a CRT can be set up.

The bottom line is, the Florida pharmacy business owner, considering selling their pharmacy, wants to receive the best money for their pharmacy business. And by consulting with the pharmacy business industry specialists at Washburn & Associates the pharmacy business owner can be assured they will glean the best from their business investment.

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Florida Buy-Sell Agreements for Pharmacy Owners

By Brad MacLiver
Authorship and profile at Google


When an FL pharmacy is owned by two or more people the stockholders/partners should have a Buy-Sell Agreement. A buy-sell agreement is a written document that provides the procedures and governs the future sale of the pharmacy business.
               
Pharmacy buy-sell Agreements protect the interest of the parties who own the pharmacy and directs the actions triggered by a stockholder leaving the business due to death, disability, divorce, dissolution, or retirement. The agreement will govern how and when the shares of the pharmacy business can be sold, or transferred. It will also provide guidance as to how the pharmacy will be valued along with the obligations of the remaining shareholders of the pharmacy in Florida.

Buy-sell agreements are important because the different elements of a future sell are predetermined and won’t need to be negotiated during a heated dispute, or during a grieving period. It provides both the stockholder and the family a comfort level that when the inevitable time comes for an exit strategy that the process was thoroughly thought out in advance.

Disadvantages of not having a buy-sell agreement between Florida pharmacy owners is that a disability may leave one partner working more and another not adding to the productivity. In the event of a death, without an agreement, one partner may be left with a nonproductive heir, or a new partner may be inserted that has personality conflicts with the surviving partner. The wrong partner could be devastating for the pharmacy business.

There are various types of buy-sell agreements such as: Entity Buy-Sell Agreement, Cross-Purchase Buy-Sell Agreement, Wait and See Buy-Sell Agreement, Disability Buy-Sell Agreement. Buy-sell agreements are also known as a Business Will or a Buyout Agreement.

Potential elements of a Buy-Sell Agreement:
1. Stockholders names and the number of shares and voting rights of each. 
2. Guidance for the certified Florida pharmacy valuation and purchase of a stockholder’s shares.
3. Mutual covenants and considerations.
4. Restrictions on transferring, purchasing or encumbering the company’s stock.
5. Protocol in the event of a shareholder’s divorce or termination of a shareholders employment.
6. Obligation to buy/sell shares from an estate.
7. Purchase of insurance to ensure that obligations can be met.
8. Purchases of stock paid either in lump sum or by instalments.
9. Solutions should a breach of the agreement or default of payment occur.
10. The right to inspect books and records until transfer is complete.
11. Amendments and notices for legal matters or offers.
12. The enforceability of the agreement, binding effects, and arbitration procedures for disputes.
13. Process for liquidator or dissolution of the corporation.
14. Maintenance for the premises during a transition.
15. Preservation of the representations and warranties.
16. The terms of transfer.
17. Bill of Sale.

To make certain that the required money is available, buy-sell agreements will typically be funded with a life insurance policy. In the event that one of FL pharmacy owners dies, the life insurance settlement will provide necessary funding for the remaining pharmacy owner to buyout their partner's shares from the estate.

Life insurance coverage for each partner needs to be in place.  With no way to accomplish the purchase of the pharmacy shares, the buy-sell agreement is effectively non-functional. As the business grows and develops the amount of insurance need to be adjusted to provide an adequate coverage. Without the insurance the surviving stockholder may not have enough cash to satisfy the amount required to buy out the estate - leaving the survivor with an unwanted partner.

To have the adequate insurance coverage and to determine the specifics of the buy-out terms, a certified pharmacy business valuation is needed. There are a large number of companies that provide business valuations. Due to the dynamics and current market conditions of the Florida pharmacy industry a valuation firm should have extensive pharmacy experience. Simple accounting formulas and multipliers will not provide an adequate, or realistic, valuation for a pharmacy business.

Florida Pharmacy buy-sell agreements are extremely important documents that need to be completed with seriousness and care. Even with a long standing partnership, it is only too late to create a buy-sell agreement when an event has already occurred....that would require the document.

Tips for FL Pharmacy Owners:
1. Buy-Sell Agreements are critical documents that should not be taken lightly. Consult a licensed professional.
2. Documents must address the proper laws and regulations which vary from state to state. Seek the proper guidance.
3. Premiums for insurance that will fund the buy-sell agreement might be deductible.
4. Ensure that the Florida pharmacy valuation is performed by an established FL pharmacy industry expert.