PIC 15 years @independent store. Owner/pharmacist wants to sell to cvs, owner owns one other store. Told the owner no way will I work with cvs, of course both parties are begging. My question is will they ask me to sign a no compete contract if I don't work for cvs?
Help pic caught up in buy out
- Thread starter Spade
- Start date
- Joined
- Dec 27, 2013
- Messages
- 712
- Reaction score
- 478
Yea i think you'll have to agree to not work within a certain vicinity of the old location... could be wrong though. You might be tucked in as a key person insurance which is pretty standard in any situation like this. I'd review your contract (if you have one) with the owner of the independent, this may or may not have influence over what you are limited to do. If you have no obligations and really object I guess you could just not sign anything but that would probably prevent the sale and then piss off the owner which in turn could kick you to the curb. The chain will probably sit on it for a bit if you poach business by working somewhere nearby then come back to the owner without you being a threat (or atleast a minimized threat) to poaching additional customers.
Again I could be completely wrong.
Again I could be completely wrong.
Let's say I tell my boss again I will not work for cvs. If the take over is going to happen then I walk out. They have a no compete contract made up already for 2 years total of 25k in two installments. I am hoping Iam in a position to ask for 250k to stay away from that town for two years. Knowing that money will more than likely come off the sale amount, am I right for asking for it? I think if the deal goes bad my boss will not kick me to the curb and if he did start treating me bad I could walk out and open my own across the street.
- Joined
- Dec 5, 2013
- Messages
- 827
- Reaction score
- 1,158
Why can't you just quit right now? Surely you don't have a non-compete with your owner at the moment. Also why would a non-compete clause matter if you guys are the only shop in town and you don't want to open your own? The best thing to do might be take the 25,000 or ask for a little more and quit.
I love my job... Don't wanna walk out.. And I don't want take over to happen.. If I can stop it by asking for 250k then I think Iam willing to gamble on it. Plus 25k is a slap in the face for a 6 million deal, don't you think?
- Joined
- Oct 12, 2013
- Messages
- 771
- Reaction score
- 1,738
What does the price of the sale have to do with you? You are not the owner.
With no other pharmacy in town I don't think they would pay you more.
With no other pharmacy in town I don't think they would pay you more.
- Joined
- Dec 27, 2013
- Messages
- 712
- Reaction score
- 478
I hate to break it to you but I highly doubt you will come close to getting the 250k. They will drop the valuation big time if they dont get the non-compete out of you and owner won't sell. He will challenge you to open a shop across the street, which you will need the capital in order to do, which it sounds like you could take some of his business but I doubt all of it, or even enough to operate in the black given it's a one pharmacy town. Owner will squat on the deal for 2 years for the offer from the big box to go back to a huge pay day, the big box will also reward him for waiting this out as well.
tl;dr I'd take the offer or work for big box instead of testing my luck.
The sale has everything to do with me, Iam the face of that store. They want the store and me but they will loose a lot of customers because I won't be there. As I understand the no compete $ comes off the sale price ( out of bosses pocket) . If cvs wants it that bad then someone should pay for my inconvience. 15 years is along time and Iam not willing to go to work for a chain pharmacy.
if I can delay the sale....better for me....I walked in with nothing and I am willing to gamble 250k.. Can't loose if you never had it. This city is at its turning point... It just became it own city, I don't live in that city, it started out as a retirement community that exploded. within 1 year Walgreens will break ground, if he doesn't sell now he will never get what he is asking.
- Joined
- Dec 27, 2013
- Messages
- 712
- Reaction score
- 478
You said there is only one pharmacy in town... where are they going to lose the customers to? I really don't know how you see this as gambling 250k, do you have 250k secured? I think what you are really gambling is the 25k and/or a job. Much can happen in a year on walgreens breaking ground. Also if Wags is throwing up a new shop whats to think CVS won't just build right next door if the city is really booming?
They will loose the customers to me ( if I open my own or work for Walgreens). Cvs wants to give me 25k and work for them for at least 2 years.. That is not going to happen..25k is nothing...not worth it. That's only 1/4th of what I make. I just may not work at all but if they don't get me to sign no compete they better watch out cause people hate cvs and "the people" want to see me!
- Joined
- Dec 27, 2013
- Messages
- 712
- Reaction score
- 478
I am not downplaying the fact the "the people" want to see you and I certainly don't want to downplay you as an individual at all. I know this is probably a very uneasy time for you. Consider this. The owner and CVS says screw it. They close the deal without you and pop up as a CVS next week. How long and how much money do you think it will take for you to open your new shop to take the customers away? If Wags was currently built or another competitor was in the market you'd be in a different position but given that's not the case you really don't have much leverage. Be pragmatic in your business decisions. I don't envy your position.
I guess I could always get my husband to tell him where to go since he is also a pharmacist and together we would have made a great business. My boss of 15 years has never asked me to partnership or right to first buy.. Yeah Iam getting screwed...and someone is gonna pay, be it cvs or the deal goes down and my Boss is stuck with his store.
This is smart info. Also keep in mind...if you leave but CVS is the only pharmacy in town people will HAVE to go there. They are not going to boycott it for you. People might got o you first given a choice but there is no choice there.
I bet CVS buys it anyways.
- Joined
- Dec 27, 2013
- Messages
- 712
- Reaction score
- 478
Why not set up a deal with the owner for him to pay you 250k in order to sign the non-compete? CVS probably won't shell this kind of cash out but if the non-compete is crucial to the agreement and your owner is begging - maybe it's time to see how much you are worth in the valuation.
- Joined
- Jan 18, 2014
- Messages
- 4,098
- Reaction score
- 4,063
let us know how it goes - I just guarantee you that you will get nothing near 250k - CVS makes a lot of money - I hate them, but they make a lot of money doing what they do and they know what you are worth or not worth to the company, I worked with somebody in a very similar situation and they only got 15k - they ended up quiting in 6 months and moving to a place one mile outside of the no compete clause and took zero, yest, zero % of the customers with them (21 miles away). So I hate to break it to you, you are not worth anywhere near 250k - no one is, nothing personal
- Joined
- Dec 27, 2013
- Messages
- 712
- Reaction score
- 478
If the valuation of the indy with a noncompete is $6mil, and without the noncompete is anything less than $5.75mil, I suggest the OP solicit the indy owner for the 250k if that will make him sign the non-compete. Given the fact that there are no other pharmacies around I doubt CVS values the non-compete that high, let alone would be willing to pay that high. However if they do try and pressure the owner by shorting the valuation without the noncompete, make the indy owner pay out the 250k the OP thinks he is worth in the valuation, contingent on the fact he signs the noncompete.
- Joined
- Sep 17, 2014
- Messages
- 5,440
- Reaction score
- 2,923
Why don't you just buy it instead of opening your own store?
As much as patients like their pharmacist, I find that it isn't enough to switch pharmacies. My patients loved my old pharmacist, he dropped out of pic when we started flu shots years ago to go to Wal-Mart. None of the patients left and they now like me just as much.
As much as patients like their pharmacist, I find that it isn't enough to switch pharmacies. My patients loved my old pharmacist, he dropped out of pic when we started flu shots years ago to go to Wal-Mart. None of the patients left and they now like me just as much.
- Joined
- Jun 15, 2011
- Messages
- 321
- Reaction score
- 138
If you don't want to buy it and walgreens is breaking ground, have the owner approach walgreens and tell them what CVS's offer is. They'll probably pay an arm and a leg to get that script volume over CVS. And they typically pay better bonuses for staff sign on for buyouts. I know a former staff that got paid a bonus for staying 6 mos and 1 year, and got a bonus if a certain % of his customers stayed.
- Joined
- Oct 2, 2006
- Messages
- 4,256
- Reaction score
- 3,509
THIS. Patient's very, very seldom switch pharmacies, just because a favorite pharmacist leaves. OP, regardless of how many patients are now telling you they would follow you wherever you go, I would be surprised if any of them outside your own family members actually do. Honestly, I'm surprised that CVS is offering you a non-compete clause as it is. It never hurts to ask for a little bit more than 25K, but yeah, no way will anyone pay you 250K for a non-compete clause. If you are adamant about not working for CVS, then I would take the money and look for another job.
- Joined
- Jan 18, 2014
- Messages
- 4,098
- Reaction score
- 4,063
- Joined
- Aug 17, 2009
- Messages
- 1,303
- Reaction score
- 1,013
"The graveyards are full of indispensable men." - Charles de Gaulle
Don't overplay your hand here...everyone is replaceable.
- Joined
- May 16, 2007
- Messages
- 4,498
- Reaction score
- 1,687
So let's get this straight. You are so valuable the current owner wants you so much he has no place for you at his "other store". CVS wants you. So what do you have to lose? Go with CVS, but refuse to sign a non-compete clause. Hey, what's 25K between friends. If you like it fine. If you don't go to work somewhere else or open your own store. On scale from 1-10 your leverage is -50. They want you because it is easy for them. CVS is a 100 billion dollar company and they will do this deal with or without you. It's easier with you and they may pay your current owner less money if you don't sign. Why do you care. In effect you are black mailing your current boss. Unless you give me X I will f you out of Y. Your ego is huge.
So in summary, you have been screwed. After 15 years of service being the face of a store that will sell for a great deal of money you can either be:
- Unemployed
- Working for CVS with a 25K sign on bonus + your six figure salary and a 2 year non compete clause
- Working for CVS with a six figure salary and no sign on bonus and no non-compete clause
You never asked for and were never offered either a piece of the store or a right of first refusal. You did yourself a disservice. Now here you are. If you think you can kill this deal you are in for a rude awakening. You found at that all bosses independent or corporate look out for themselves. No select one of the options above and be happy.
- Joined
- Apr 4, 2006
- Messages
- 2,684
- Reaction score
- 443
Patients will not follow a pharmacist to the ends of the earth. At the end of the day they want convenience. I am sure you are a great pharmacist and provide amazing service, but so do a lot of us. They will get over it really quickly.
Are you prepared to open your own store across the street from CVS? To me, that is your only leverage and after 15 years of not showing that desire, they know you are bluffing. CVS is just buying script count and I'm surprised they even bother with 25k to ensure smooth transition. Either way, you can't open fast enough and by then Walgreens will have a store too.
The rest is nicely summarized by OT.
The rest is nicely summarized by OT.
- Joined
- Jan 18, 2014
- Messages
- 4,098
- Reaction score
- 4,063
- Joined
- May 18, 2005
- Messages
- 2,106
- Reaction score
- 180
I agree with what other posters said. I am also going to add to their points.
CVS will never pay for an independent pharmacy that is non-compete. They will also never pay for anything that they don't see the value in, but wont short change you also. However you are not the owner. I suspect that they don't really care about you and will get this deal signed either way (owner definitely has to sign non compete). Getting you as a staff pharmacist to do a non-compete is just a bonus...If you don't sign it, okay... you wont get a job. If you sign it, you get a job, they may increase customer retention and acquisition will go easier so the value of the deal is more.
In other words, they always win..., but not by much. The idea is to be fair but also win because they don't want the independent owner to be un-happy and badmouth them. There is a formula for acquisition that takes into account of many variables such as estimated script retention, amount of narcs filled, etc. They have real estate teams comprised of very experienced and good people (that is how CVS grew so fast), and in addition, the deal has to go through and be approved by a lot of people.
So if they offer you 25k (which is the maximum incentive that I have seen and received myself), that is the most you are going to get. You will not get 250k. You can negotiate for a higher salary, or more vacation days.
Like other poster have said, customer says a lot of things. Do not believe any of it. Ultimately, I will be surprised if you retain any customers. There is a lot that goes into opening an independent pharmacy. You might not be operational because of many bumps (ie applying for insurances), for a while..., and customers are not going to wait.
Also lastly, your pharmacy might have done so well because it was the only pharmacy in town. Once another pharmacy opens..., people have options.
CVS will never pay for an independent pharmacy that is non-compete. They will also never pay for anything that they don't see the value in, but wont short change you also. However you are not the owner. I suspect that they don't really care about you and will get this deal signed either way (owner definitely has to sign non compete). Getting you as a staff pharmacist to do a non-compete is just a bonus...If you don't sign it, okay... you wont get a job. If you sign it, you get a job, they may increase customer retention and acquisition will go easier so the value of the deal is more.
In other words, they always win..., but not by much. The idea is to be fair but also win because they don't want the independent owner to be un-happy and badmouth them. There is a formula for acquisition that takes into account of many variables such as estimated script retention, amount of narcs filled, etc. They have real estate teams comprised of very experienced and good people (that is how CVS grew so fast), and in addition, the deal has to go through and be approved by a lot of people.
So if they offer you 25k (which is the maximum incentive that I have seen and received myself), that is the most you are going to get. You will not get 250k. You can negotiate for a higher salary, or more vacation days.
Like other poster have said, customer says a lot of things. Do not believe any of it. Ultimately, I will be surprised if you retain any customers. There is a lot that goes into opening an independent pharmacy. You might not be operational because of many bumps (ie applying for insurances), for a while..., and customers are not going to wait.
Also lastly, your pharmacy might have done so well because it was the only pharmacy in town. Once another pharmacy opens..., people have options.
