Invest Your Pharmacy
Pharmacies are increasingly attractive targets.
To private equity (PE) firms and large capital pools, they offer reliable recurring revenue year after year together with the potential for growth as the population ages and new services are introduced to the practice. However, typical private equity transactions do not favour the independent pharmacist who usually gives up both their independence and most of the financial upside.
A typical PE deal cuts the pharmacist out of most of the gains. The PE firm buys the pharmacy for a single-digit multiple of its profit, uses that profit to fund most of the purchase price and then sells the whole package to the public markets for two or sometimes even three times the purchase price and a huge return for the PE fund’s investors. The pharmacist earns at most 30% of the gain and usually not that.
iRx takes a different view.
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The Opportunity
Don’t sell your pharmacy. Invest it!
iRx works for you
No Boss
You run your store your way. iRx is a silent partner.
Your Banner
Stay with your banner and wholesaler
Retire with More
Increase the cash your retire with
Save Taxes
Take advantage of tax saving tools when you diversify your assets
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How It Works
Cooperating, not merging.
IRX PURCHASES a portion of your cash flow at a higher multiple
iRx purchases your assets then leases them back to you in return for your cash flow and future goodwill. You receive cash up front at a higher multiple than if you were selling your pharmacy. Historically independent pharmacies have sold at around 5.5 times EBITDA (Earnings Before Interest and Taxes). iRx can pay approximately 11 times*.
The fund uses aggregation, diversification of risk, leverage and the depreciation to achieve better results for investors in the fund. This is what enables the fund to pay a higher multiple to you as a pharmacy owner.
The typical pharmacy that would work in the iRx model is a well-managed profitable pharmacy with stable cash flows.
Over time, you have the ability to sell more portions of cash flow at a high multiple. Eventually you could sell the majority of your pharmacy through this process to enable your retirement with more cash than if you had sold your pharmacy on its own.
In addition, when you become a member of iRx, you will be invited to be an investor in the fund. You have the option to benefit as an investor as well as a member.
* Purchase multiples are subject to market conditions other factors
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Next Steps
Reserve your spot and get a specific proposal.
Expression of Interest & NDA
Non-binding Letter of Intent outlining the terms and the steps we will take together and an NDA to ensure your confidentiality
Submit Application
Submit an application form with some high level financial history
View workshops
Pharmacists will obtain access to situation specific workshops (ready to retire soon vs. staying for the long term). Pharmacists can share that information with financial and legal advisors
Due Diligence
If your pharmacies are accepted for further review, iRx will analyze financial reports and conduct due diligence
Clearance
Obtain formal clearance from banks, wholesalers, banners and other affected parties
Private Placement
Formal agreement based on reported EBITDA and standard multiples
Onboarding
Options granted based on EBITDA growth relative to other members