Independent Pharmacy — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
3×
Typical
4.5×
Max
6×
Revenue Model
Repeat
Capital Intensity
Medium
A typical multiple of 4.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Independent pharmacy businesses typically trade at 3×–6× EBITDA. Government dispensing contracts provide predictable base income, supplemented by private services including travel health and vaccination clinics. Loyal patient lists and locations adjacent to medical centres are strong valuation factors. Online pharmacy competition and government dispensing fee pressures are the primary risks.
Key Value Drivers
- Government dispensing contract providing base income
- Private services (travel health, vaccinations)
- Loyal patient list
- Location adjacent to medical centre
- Enhanced services accreditation
Key Risks
- Government dispensing fee reduction risk
- Online pharmacy competition
- Drug margin compression
- Locum pharmacist costs
- Regulatory compliance
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.