Buy-Sell Agreements
Question:
What are some of the perks of ownership? Tax write offs? Free goods?
This question was asked on 2 February 2010
Expert Response
If you ask a banker how much you need to bring to the table, the typical answer would be 25% of the total cash needs for the transaction. By preparing a solid, conservative Loan Proposal, 10-20% has been acceptable.
For an average pharmacy with say a $2,000,000 turnover and say a $1,500,000 value, this means you will need approximately $375,000 in cash or unencumbered equity in other assets (i.e. your home).