Buying a Health Mart Pharmacy franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 21 7(a) loans to buy an existing Health Mart Pharmacy (classified mostly as Pharmacies and Drug Retailers), totaling $32.7M. The median loan was $1,350,000, 109% higher than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Health Mart Pharmacy resale loans landed between $865,000 and $2,030,000.
- Lender experience exists. First Financial Bank alone has financed 16 Health Mart Pharmacy resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Health Mart Pharmacy resale
The median SBA 7(a) loan for a Health Mart Pharmacy resale was $1,350,000 across 21 loans (FY2018 to FY2026). First Financial Bank, Live Oak Banking Company and First Horizon Bank have financed the most Health Mart Pharmacy resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Health Mart Pharmacy acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $10.4M | $2,050,000 | |
| FY2019 | 2 | $2M | $1,012,500 | |
| FY2020 | 8 | $12.6M | $1,738,500 | |
| FY2021 | 4 | $4.3M | $916,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 2 | $3.5M | $1,727,500 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Health Mart Pharmacy acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing Health Mart Pharmacy resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | First Financial Bank | 16 | 76.2% | $28M | |
| 2 | Live Oak Banking Company | 2 | 9.5% | $1.3M | |
| 3 | First Horizon Bank | 1 | 4.8% | $1.7M | |
| 4 | Landmark National Bank | 1 | 4.8% | $967K | |
| 5 | Citizens Bank & Trust | 1 | 4.8% | $639K |
States where Health Mart Pharmacy units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Mississippi | 5 | 23.8% | $7.7M | |
| 2 | Tennessee | 4 | 19.0% | $5.8M | |
| 3 | Alabama | 2 | 9.5% | $2.3M | |
| 4 | California | 1 | 4.8% | $4.3M | |
| 5 | Arizona | 1 | 4.8% | $2.7M | |
| 6 | Nebraska | 1 | 4.8% | $2.2M | |
| 7 | Louisiana | 1 | 4.8% | $1.9M | |
| 8 | Oklahoma | 1 | 4.8% | $1.4M | |
| 9 | Ohio | 1 | 4.8% | $1.3M | |
| 10 | Kansas | 1 | 4.8% | $967K |
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Questions buyers ask
How much do buyers borrow to buy a Health Mart Pharmacy franchise?
The median SBA 7(a) loan for a Health Mart Pharmacy resale was $1,350,000 across 21 loans (FY2018 to FY2026). The middle half of loans ran from $865,000 to $2,030,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Health Mart Pharmacy acquisitions?
First Financial Bank has made the most SBA acquisition loans for Health Mart Pharmacy (16, 76% of the total). Live Oak Banking Company, First Horizon Bank, Landmark National Bank follow.
What interest rate and term do Health Mart Pharmacy acquisition loans carry?
The average initial rate at approval was 6.11% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Health Mart Pharmacy resale riskier than other SBA-financed acquisitions?
Too few Health Mart Pharmacy acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Health Mart Pharmacy units being bought with SBA loans?
Mississippi (5), Tennessee (4), Alabama (2), California (1), Arizona (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
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Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Pharmacies and Drug Retailers acquisitions
- Mississippi acquisitions
- Tennessee acquisitions
- Alabama acquisitions
- First Financial Bank
- Live Oak Banking Company
- First Horizon Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Health Mart Pharmacy" (franchise code S0795). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.