Well-Established Independent Pharmacy, Texas Metro

Full Editorial Writeup

This is an established independent pharmacy operating in a Texas metropolitan market, generating roughly $20.9M in annual revenue and $1.27M in EBITDA. The business fills prescriptions for a recurring patient base and likely carries the standard mix of retail front-end sales, third-party insurance reimbursement, and possibly specialty or compounding revenue lines that lift margins above a pure retail script model. At a $3.75M asking price against $1.27M EBITDA, the deal is priced at roughly 2.95x, which is a reasonable entry point for a healthcare cash-flow business.

Pharmacies are among the more defensive small-business models an acquirer can own. Patients on maintenance medications refill month after month regardless of the economy, and a well-run store builds sticky relationships with prescribers, insurers, and repeat customers. The recurring nature of prescription refills produces predictable, contract-like revenue that is far more durable than discretionary retail.

The caveat is margin structure. A 6.1% EBITDA margin on $20.9M in revenue is typical for a pharmacy dominated by third-party reimbursement, where reimbursement rates, DIR fees, and PBM contracts dictate profitability. The quality of this deal hinges on the mix between low-margin insurance scripts and higher-margin cash, compounding, or specialty business, and on how exposed the store is to reimbursement compression.