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The following provides a definition and meaning for the term Equity:

Meaning - how it relates to pharmacy sales

In pharmacy ownership, the term Equity refers to the unencumbered ownership that you have invested in a business. Or the value of the business, less any debt against that business.

It represents that value you hold of the pharmacy less any debts against the business.

As a pharmacy buyer, you should look to contribute at least 30% of the equity of the pharmacy when purchasing the business.

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