Healthcare
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Securing Over $1M in Funding for a New Pharmacy Acquisition
The Challenge:
A client transitioning from employee to business owner sought to acquire and incorporate a pharmacy but needed over $1M in funding to complete the purchase. The pharmacy had only been in operation for two years and was located in a new and developing suburb, making it more challenging to assess long-term stability and convince lenders of its viability. Key challenges included:
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Limited operating history – With only two years in business, there was minimal historical financial data to analyze.
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Developing market conditions – The pharmacy was in a new suburb still growing, making revenue projections and customer demand analysis crucial.
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Proving business viability to lenders – The client needed to demonstrate profitability and potential for long-term success.
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Building reliable financial forecasts – Lenders required detailed cash flow, profit & loss, and balance sheet projections based on industry trends and local demographics.
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Understanding debt servicing requirements – The client needed a clear financing strategy to meet lender criteria and ensure cash flow sustainability.
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Creating risk management strategies – Investors required sensitivity analysis and financial scenarios to assess risks and potential returns.
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Our Solution:
To secure financing and support the client’s transition to business ownership, we provided a comprehensive financial and strategic plan:
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Analyzed the pharmacy’s historical performance – Reviewed two years of financial data, adjusted for market trends, and projected realistic revenue growth.
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Developed robust financial projections – Created cash flow forecasts, profit & loss statements, and balance sheet models, ensuring accuracy for lenders.
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Conducted a detailed market study – Assessed the demographics, population growth, and healthcare demand in the developing suburb to justify revenue assumptions.
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Benchmarked against industry data – Used market-based figures for wages, revenue expectations, and cost inputs to create credible forecasts.
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Performed sensitivity analysis – Built multiple financial scenarios (best-case, worst-case, and moderate growth projections) to prepare the client for various outcomes.
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Worked with lenders to meet financing criteria – Ensured the financial model aligned with debt servicing requirements for loan approval.
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Created a strong business plan – Presented growth strategies, risk mitigation, and expansion potential, increasing confidence from banks and investors.
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The Outcome:
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Secured over $1M in funding – The client successfully obtained the capital to acquire and incorporate the pharmacy.
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Strengthened lender confidence – The detailed business plan and financial projections demonstrated long-term viability, leading to a smooth approval process.
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Strategic growth planning – With insights into local market trends and expansion opportunities, the client was positioned for long-term success.
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Structured financial sustainability – The cash flow projections ensured the business could cover debt repayments while maintaining profitability.
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Seamless transition to entrepreneurship – The client moved from employment to ownership with a clear financial strategy and growth plan.
By combining financial expertise, market insights, and strategic planning, we helped this new pharmacy owner secure funding, mitigate risks, and build a profitable future in a growing community. ​​