Financing your pharmacy acquisition
Most pharmacy acquisitions are funded through SBA loans, conventional financing, or a combination. DMS connects buyers with lenders who understand pharmacy cash flows.
SBA 7(a) Loans
Most common · Up to $5M
The SBA 7(a) loan program is the most widely used financing vehicle for independent pharmacy acquisitions. With government backing, lenders can offer longer repayment terms and lower down payments.
- Up to $5M loan amount
- 10–25 year repayment term
- 10–20% buyer equity requirement
- Real estate included (if applicable)
- Pharmacy goodwill accepted as collateral
Conventional Bank Financing
For qualified buyers
Buyers with strong credit, pharmacy experience, and existing banking relationships may qualify for conventional financing with faster approvals and fewer documentation requirements.
- Faster approval (2–4 weeks)
- Less paperwork than SBA
- Typically 5–10 year term
- Stronger credit required (720+)
- Lower transaction costs
Seller Financing
Flexible · Negotiated terms
In some transactions, sellers may agree to carry a portion of the purchase price in the form of a seller note. This bridges the gap when bank financing does not cover the full purchase price.
- Typically 10–30% of purchase price
- 3–7 year term
- Shows seller confidence in buyer
- Often subordinate to senior lender
- Can accelerate deal closing
ESOP / Equity Structures
For larger transactions
For chains and specialty pharmacies above $3M, private equity, family office, and ESOP structures may be appropriate. DMS can connect buyers with advisors who specialize in these arrangements.
- Private equity partnerships
- Family office capital
- Employee stock ownership plans
- Suitable for $3M+ transactions
- Complex — requires experienced counsel
Ready to explore financing?
Register as a buyer and we will connect you with pharmacy-experienced lenders who can provide pre-approval letters to strengthen your LOI offers.