Tips for Colorado business owners from Target’s pharmacy sale to CVS
The business transaction between CVS and Target provides lessons for entrepreneurs in Colorado.
The pharmaceutical giant CVS is reportedly purchasing and rebranding Target pharmacies. The move will allow CVS to operate within Target, taking over the current Target clinics and rebranding them as CVS MinuteClinics. An article in The Wall Street Journal notes that the move purportedly allows Target to focus on stronger areas of profitability like style brands and goods for babies. The deal may also allow Target to develop smaller stores known as TargetExpress in more locations. The acquisition is estimated to cost $1.9 billion.
Lessons for entrepreneurs in Colorado
Although this business deal is large, even smaller scale operations throughout the country can learn from the transaction. The plan provides an example of capitalizing on the strength of CVS’s pharmaceutical operation and utilizing those strengths to increase the marketability of Target. The move is designed to increase the number of customers who receive health services from these smaller pharmacies located within Target, likely also translating to increased consumerism within the rest of the store.
Purchasing a business in Colorado
Whether looking to strengthen an existing enterprise or to purchase a business as a flagship, there are many considerations for entrepreneurs before purchasing a business in Colorado. The Colorado Secretary of State provides some guidance, noting some of the top concerns include:
- Insurance. Businesses operating in the state need to have an array of insurance policies to help protect themselves and the public they serve. The exact requirements may vary depending on the nature of the business, but examples include liability, fire and premises, auto, crime, and products liability.
- State regulations. The state oversees a variety of business. For example, businesses serving or selling liquor need to contact the Department of Revenue while others may need to refer to the Public Utilities Commission. The Department of Regulatory Agencies also regulates a variety of businesses including those involving accounting, acupuncture, certified public accountants, cosmetologists, counselors, engineers, hunting, fishing, landscaping, midwives, plumbing, real estate and veterinarians as well as health care providers.
- Federal regulations. Business owners also need to navigate federal regulations regarding minimum wage laws and safe work conditions as well as compliance with anti-discrimination laws like Equal Employment Opportunity and the Americans with Disabilities Act.
These are just a few of the many considerations to review before moving forward with a business deal. As a result, those considering a merger or acquisition are wise to seek the counsel of an experienced Colorado business purchase agreement lawyer. This legal professional will review the legal, financial and business risks and work to better ensure a more favorable outcome.
Keywords: business law business transactions