The short answer: Independent pharmacies price at 0.21–0.34× revenue (Peak Business Valuation averages): a typical $3M-revenue store runs $630,000–$1.02M, a $1.5M store $315K–$510K, a $5M store $1.05M–$1.7M, in each case plus inventory, counted and priced separately at closing. The same deals map to 2.25–2.97× SDE. With an SBA 7(a) loan the 10% injection on total project cost is about $80K on an $800K store, half coverable by a standby seller note, so your cash can start near ~$40,000 before the inventory check.
What pharmacies actually cost
Topline is big and margin is thin, which is why the revenue multiple sits at a fraction of other industries:
| Store | Revenue | Implied SDE | Typical price |
|---|---|---|---|
| Smaller store | $1.5M | ~$140K | $315K–$510K |
| Typical independent | $3M | ~$280K | $630K–$1.02M |
| Larger store | $5M | ~$450K | $1.05M–$1.7M |
Every quoted pharmacy price has an asterisk: inventory is bought separately, counted and dated at closing, commonly $150K–$400K of additional cash need on an independent. The price itself moves on the script file's trend, prescriber concentration, and whether the reimbursement contracts transfer.
How the price is set: the multiple
The revenue multiple carries the pricing weight. On the typical $3M-revenue independent:
| Multiple | Implied price | When it applies |
|---|---|---|
| 0.21× (low) | $630,000 | Eroding script count, concentrated prescribers, weak contracts |
| 0.275× (middle) | $825,000 | Stable file, average payer mix, clean transfer path |
| 0.34× (high) | $1,020,000 | Growing file, favorable transferable contracts, clinical services layered |
Same revenue, a $390,000 swing, set by the script file and the contracts that price it. See the sourced ranges on the pharmacy multiples data page and the mechanics in valuation.
The counter is not the business. The script file, and the contracts that price it, are.
The down payment and the full capital stack
Under SBA 7(a) rules, a change of ownership needs a minimum 10% equity injection, calculated on the total project cost, the price plus financed fees, not on the loan amount. Up to half of it can be a seller note on full standby, and the injection cannot come from borrowed funds. The worked stack on a $800,000 pharmacy:
| Source / use | Amount | % of price |
|---|---|---|
| SBA 7(a) bank loan | $720,000 | 90% |
| Your cash injection | $40,000 | 5% |
| Seller note (full standby) | $40,000 | 5% |
| Purchase price | $800,000 | 100% |
| + Est. closing costs & fees (financed) | ~$30,000 | |
| + Working-capital reserve | $50K–$80K + inventory |
The honest cash to close is the ~$40,000 injection plus reserves plus the inventory check, the item first-time pharmacy buyers most often underestimate. The injection is calculated on the total project cost and cannot be borrowed; lenders will typically finance the counted inventory within the loan when it is priced at cost.
Does the deal cash-flow?
At ~$280K SDE and roughly $118K of annual debt service on a $750K financed total plus inventory, coverage sits near 2.4× if reimbursement rates hold. Model the same deal at a 2% reimbursement cut before trusting it. Check any structure against a DSCR of ~1.15× to 1.25× before you sign anything.
Costs buyers forget
- The inventory check, counted, dated, priced at cost at closing; stale stock excluded, and it is real cash.
- Change-of-ownership re-credentialing, you must be in-network on day one or the file leaks immediately.
- SBA guarantee & packaging fees, a percentage of the guaranteed amount, usually financed.
- Legal & closing, purchase agreement, payer-contract assignments, wholesaler transfer.
- Pharmacist coverage, licensed staffing through transition, including your own licensure timeline.
- Working capital, reimbursements pay on terms; the buffer carries inventory turns meanwhile.
Model your pharmacy deal end to end
Price, down payment, loan payment, and take-home in one place.
Frequently asked questions
A typical $3M-revenue independent runs $630,000–$1.02M at the sourced 0.21–0.34× revenue multiple, plus inventory counted and priced at closing. Smaller stores start near $315K; larger ones reach $1.7M before inventory.
An SBA 7(a) purchase needs a 10% equity injection on the total project cost, about $80,000 on an $800,000 store. Up to half can be a standby seller note, so your own cash can start near $40,000, plus the inventory check and reserves.
No. By convention inventory is bought separately at closing: counted, dated, and priced at cost, commonly $150K–$400K of additional cash on an independent. Stale or unmanaged stock is excluded or discounted in the count.
Because payers set the prices: reimbursement contracts control the margin on most of the revenue. High topline with thin, externally controlled margin prices at 0.21–0.34× revenue where other industries trade at multiples of that.
Sources
- Multiples, Peak Business Valuation, Valuing a Pharmacy; Acquisition Ace pharmacy multiples.
- Size-band prices derived from the sourced 0.21–0.34× revenue multiple at the stated revenues; inventory separate.
- Financing structure & equity injection, SBA 7(a) program; SOP 50 10 8. See our SBA loan guide.
