PHILADELPHIA In order to better facilitate the purchasing of independent community pharmacies, a group that represents such businesses announced its deal with Live Oak Bank.
Live Oak Bank is a banking lender that recognizes the pharmacist’s earning power and the value of resaleable inventory and prescription files, the National Community Pharmacists Association said. The deal was announced during the NCPA's 112th Annual Convention and Trade Exposition.
“Independent community pharmacies focus on patient care and a wide array of services that their competitors cannot replicate, but it can be difficult for prospective owners to secure financing for these purchases,” said Doug Hoey, NCPA acting EVP and CEO. “That’s why this partnership between NCPA and Live Oak Bank is a game changer. While Live Oak Bank has been catering to healthcare providers for more than 20 years, now NCPA will use the full weight of its assets to alert potential buyers of this great lending resource.”
NCPA estimated that more than 1,000 independent pharmacies will be sold next year. Live Oak chairman and CEO Chip Mahan acknowledged this statistic, stating that major chain pharmacies “are interested only in the customer script count, or customer base, and have priced those independent pharmacy acquisitions accordingly.”
“Live Oak Bank has been able to work with buyers and sellers to properly identify the appropriate value for the business, resulting in preserving the integrity of the employee base that will allow the independent pharmacy under new ownership to serve [its] existing customer with the care and attention that the chains simply cannot match. We fully expect to facilitate [more than] $100,000,000 in transactions in 2011,” Mahan said.