Whether you are an aspiring young pharmacist considering a partnership program, wanting to purchase your first pharmacy, growing your business portfolio, or re-entering the market after some time away from business, there is some important information to consider.
Here are my top 5 tips to consider before buying a pharmacy:
1. Understanding the market and the process of buying a pharmacy
- Right now, it is a seller’s market, so you need to be prepared to move quickly when an opportunity becomes available.
- Do as much reading and research as you can, speak to knowledgeable brokers and colleagues.
2. Make the right connections and stay in contact on a regular basis
- Make yourself known to the people who can help you secure a quality pharmacy, for example; pharmacy brokers, pharmaceutical wholesalers, pharmacy lenders (banks, finance brokers), accountants that know pharmacy.
3. Know your price and what you are looking for
- First and foremost, know your budget – have detailed discussions with bankers who offer pharmacy loans. Also have frank discussions with your accountant about how owning a business would impact on your personal financial situation.
- Where you would be prepared to go, for example; interstate, regional or CBD, style and size of the business is also something to consider.
- More opportunities present to those who are prepared to look outside of capital cities.
4. Know your own strengths and weaknesses and be prepared to back yourself
- Different pharmacies require different skill sets and levels of experience.
- Knowing your strengths and weaknesses makes it easier to assess whether a particular business would suit you.
Do your homework, but do not overanalyse
- Due diligence is important, however, “over analysis can cause paralysis.”
- Up-skill yourself on the key things to look for in the financial reports of the pharmacies for sale. Time is of the essence and most good pharmacies, if priced appropriately, won’t be on the market long – some less than one week.
- Remember, full due diligence by your accountant or other professionals will be conducted as a condition of the contract of sale.
Buying a pharmacy business is a big commitment for any pharmacist and can be a very daunting task without the correct preparation.
By following the steps above, having a sound understanding of your personal, financial and business credentials along with the confidence and dedication to back yourself in business, this commitment can be less overwhelming.
It is an exciting time in your life, doing your homework will really help prepare you for success.
– David Gilbert, SA & NT Sales Manager at AP Group