Timing, price pressure, and deal structure

In this episode the hosts dig into a $7.1 M cash‑price listing for a specialty pharmacy in Beverly Hills — evaluating its 1.49 M EBITDA, market position and regulatory complexity to see whether it’s a viable acquisition.

Business Listing – https://www.bizbuysell.com/business-opportunity/specialty-medical-pharmacy-in-prime-southern-california-location/2445305/

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This episode of Acquisitions Anonymous breaks down a real‑world potential buy of a specialty (medical) pharmacy based in Beverly Hills, California. The listing claims a 2025 expected revenue of about $6.2 M with $1.49 M in EBITDA/SDE, monthly rent around $9,167, and an asking price of $7.1 M — roughly 4.75× trailing earnings. The sellers are motivated by acute health issues and retirement, which introduces urgency. The hosts explore both the upside — a long‑established business in a wealthy market, high margins, and niche specialty‑pharmacy demand — and the downsides: regulatory/licensure hurdles, dependence on skilled pharmacists, insurance/payer access challenges, and the uncertainty of consistency in earnings.

Key Highlights:
- Asking price: $7.1 M cash, with stated EBITDA/SDE of $1.49 M → ~4.75× multiple.
- Business profile: Long‑established (since ~1980), located in affluent Beverly Hills, servicing specialty prescriptions (potentially high‑cost biologics, pain, immunology, chemo) rather than typical retail offerings. 
- Opportunity: High margins (claimed ~25%) — above what might be expected for a typical low‑margin compounding pharmacy. 
- Risks: Regulatory/licensure risk under the California pharmacy law: any change in ownership or control requires approval by the board before the transaction can close. 
- Execution risk: Because the seller is reportedly ill and likely a “forced seller,” there may be pressure to close quickly — which compresses time for due diligence on payer contracts, referral sources, license transfers, and underlying quality-of-earnings.  

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