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All posts tagged Mike Jaczko

Time to sell your pharmacy, Part 3. How to choose your transition lawyer

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Mike_Jaczko_Max_Beairsto
Selling your pharmacy is not just a financial transaction, but a legal one, and it behooves you to consult a lawyer early in the process. A good lawyer with experience in the sale of businesses is an important player on your transition team, and they will work with your team lead, accountant, tax and financial advisors to determine the structure of the deal before going to market. Read more

Last chance. RRSPs or TFSAs? What’s your best tax-free option?

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Mike Jaczko
The RRSP deadline looms the end of February, so it's time to make some decisions about your tax-free savings options. Read more

Time to sell your pharmacy, Part 2. Who’s your quarterback?

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Mike_Jaczko_Max_Beairsto
If you are planning to exit your pharmacy business, you need a good team of advisors on your side. It should include an accountant, a corporate lawyer, a tax expert and a financial advisor, but the single most important member is the team lead – a “quarterback” who will ensure the players are working together and who will represent your interests from start to finish. Read more

Time to sell your pharmacy, Part 1. Choose your dream team.

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Mike_Jaczko_Max_Beairsto

by Mike Jaczko and Max Beairsto

All babies are beautiful – to their parents. It can be the same with a business. After spending years, even decades, building their pharmacy, surviving through the hard times and celebrating the good, many owners have a difficult time seeing their “baby” for what it truly is. Because they are so close, these owners struggle to remain objective about their business, and about exiting it. In our view, it is imperative that any pharmacist contemplating a sale retain a team of experienced, professional advisors who can help them view the business and the transaction through the broader lens of a realistic market assessment. It’s not good enough to proceed based on “over the backyard fence” anecdotal hearsay. You need to make your decisions based on objective and empirical facts about your business.

Another important reason to assemble a team of advisors is that the sale of anything, by nature, is an adversarial process. One side wants a low price, the other a high price. The buyer will want you to give as much in terms of representations and warranties, and you, the seller, will wish for as few as possible. Not only do you, the seller, need someone on your side to filter the negotiating rhetoric and take your personal feelings out of it; you also need someone to navigate all the complexities, which will be beyond what you have learned operating your business through the years.

Ideally, this will be a multidisciplinary effort provided by a team of advisors, not just one. One solid model for an effective transition team comprises your accountant, a tax specialist, an experienced corporate lawyer, a financial advisor and – perhaps most important – an intermediary who will act as your “quarterback” to ensure everyone is working together and moving in the right direction: towards the goal line. Having any one of these team members missing could damage or derail what would be an otherwise successful exit.

As a team, this set of advisors should provide you with a sense of assurance that they:

  • have experience in selling pharmacy businesses;
  • have general experience in acquiring private businesses;
  • have knowledge of or are able to research your specific market attributes;
  • can communicate well and offer effective negotiating tactics;
  • can provide well-considered and objective advice, and
  • understand the taxation consequences of the transaction.

In the next article in this series, we’ll talk about the qualities and experience you should look for in a transaction “quarterback.”

Mike Jaczko, BSc. Phm, RPh, CIM®, FEA, a pharmacist by background, is a portfolio manager, partner and member of KJ Harrison Investors, a Toronto-based private investment management firm servicing individuals and families across Canada. For more information on this topic, email mjaczko@kjharrison.com or visit www.kjharrison.com.

Max Beairsto, B.Sc. Pharm., MBA, CVA is a pharmacist and valuation analyst with Enterprise Valuators Corporation (EVCOR), an Edmonton-based business valuation firm that focuses on business valuations and sale advisory of small and mid-sized private companies. You can reach him at max@evcor.com or visit www.evcor.com.


4 strategies for pharmacy financial planning for 2021

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Mike_Jaczko_Max_Beairsto
The new year is (finally) here and that means the time is right, while 2021 is still fresh, to plan your pharmacy's financial plan for the year ahead. Read more

Year-end tax tips for pharmacy businesses

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Mike_Jaczko_Max_Beairsto
It’s time to clean up your investment pantry for tax-loss selling purposes. Read more

Have you considered life insurance for your estate plan?

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Mike Jaczko
Estate planning ensures that an individual’s or family’s assets are distributed according to their wishes after death. Read more

The three stages of financial planning for your pharmacy

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Mike_Jaczko_Max_Beairsto
No business remains the same over the course of its lifetime, from startup to exit. Read more

Are you prepping for retirement?

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Mike_Jaczko_Max_Beairsto
Whether we acknowledge it or not, we all have a nagging little voice in the back of our heads that goes around and around wondering whether we currently have enough money to retire and if so, can we continue to enjoy the lifestyle we have come to expect? Read more

How do In-Trust For accounts work, and why should you care?

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Mike_Jaczko_Max_Beairsto
Many small business owners, including independent pharmacy owners, continue to utilize “In-Trust For accounts" or ITFs to help save money for their children, for a number of reasons. Read more