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Showing 1 to 3 of 3 articles related to "discounted".

Validating Valuations

Proving that the price and numbers given about a pharmacy are true and correct (i.e. financial due diligence). What to ask for to validate what you have been told by the broker when you think he is painting a "rosy" picture?

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Pharmacy Capitalisation Rates

Hello!!! I'm a 4th year pharmacy student at Monash University. As a member of the Victorian Pharmacy Student's Association I have heard about Medici and the services it provides. I am currently undertaking a management assignment that requires us to valuate a community pharmacy. I have decided to use Discounted Cash Flow and Capitalisation of Future Maintainable Profits to help me but have hit a snag! How do i calculate the discount rate and capitalization rates? are there current industry figures that i can use? If so, where can i find these figures?Thank you in advance!

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Pharmacy Valuations

Different circumstances require different business valuations. In pharmacy, re-financing, new partner acquisition and purchases require different methods of valuation to account for changes in style of the operation of the business. Medici Capital is the industry leader in pharmacy valuations and takes these factors into account when valuing a pharmacy.

There are three methodologies for pharmacy valuation:

Method: Explanation: Uses: Discounted Cash Flow (DCF) The pharmacy value is the present value of the future cash flows from that business. Pharmacies with a finite life or varying annual cash flow. Capitalisation of Future Maintainable Profits Maintainable profits are estimated and capitalised using long-term market or industry discount rates. Pharmacy with a presumed "infinite life". Assets plus Goodwill The going concern value of assets plus goodwill for expected future income. Relatively new pharmacies or where future cash flows are uncertain.

The choice of methods depends on the ability to forecast revenue and expenses and the purpose of the valuation.

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