Buying a Pharmacy Business
For first time buyers, getting on to the pharmacy owning ladder can appear a pretty daunting venture. Finding a pharmacy in itself can take time, and dealing with all of the financial and legal aspects of buying your first pharmacy can feel a little overwhelming. However, with the right contacts and pharmacy specialist advisers to guide you, it doesn’t need to be an impossible task. This article highlights some of the key aspects of the steps involved in finding and purchasing your first pharmacy.
PROCESS AND TIMELINE PROCESS AND TIMELINE
1. Finding a suitable Pharmacy
This may be fairly obvious, but your starting point is to consider what type of pharmacy you wish to buy, in terms of location (city or rural), size (which is likely to be influenced by the funds which you have available to you), whether you want to own the premises or lease, and so on. You can then start your search for the pharmacy which best fits the bill. Many pharmacies which are available to purchase are actually marketed for sale by specialist sales agencies, and so we would recommend registering your details with them so that you can be made aware of pharmacies which are up for sale. Alternatively, you may simply hear about a pharmacy on the grapevine. That might allow you to buy off market, which can be beneficial in terms of avoiding a competitive situation with other buyers.
1. Finding a suitable Pharmacy
This may be fairly obvious, but your starting point is to consider what type of pharmacy you wish to buy, in terms of location (city or rural), size (which is likely to be influenced by the funds which you have available to you), whether you want to own the premises or lease, and so on. You can then start your search for the pharmacy which best fits the bill. Many pharmacies which are available to purchase are actually marketed for sale by specialist sales agencies, and so we would recommend registering your details with them so that you can be made aware of pharmacies which are up for sale. Alternatively, you may simply hear about a pharmacy on the grapevine. That might allow you to buy off market, which can be beneficial in terms of avoiding a competitive situation with other buyers.
2. Finance 2. Finance
If you are fortunate enough to have sufficient cash to purchase the pharmacy, then great.
If you are fortunate enough to have sufficient cash to purchase the pharmacy, then great.
For first time buyers, getting on to the pharmacy owning ladder can appear a pretty daunting venture. Finding a pharmacy in itself can take time, and dealing with all of the financial and legal aspects of buying your first pharmacy can feel a little overwhelming. However, with the right contacts and pharmacy specialist advisers to guide you, it doesn’t need to be an impossible task. This article highlights some of the key aspects of the steps involved in finding and purchasing your first pharmacy.
However, most buyers need some bank finance to purchase. It would therefore make sense to either use a finance broker to investigate finance options, or to approach the Healthcare teams of one or more banks to explore how much you would be able to borrow.
3. What are you buying? 3. What are you buying?
However, most buyers need some bank finance to purchase. It would therefore make sense to either use a finance broker to investigate finance options, or to approach the Healthcare teams of one or more banks to explore how much you would be able to borrow.
Many pharmacies are owned by a company, and when they are sold there are two options, either you can buy the goodwill and assets of the business, or you can buy the company itself. Understanding the difference between these two routes is very important, and we would recommend that you consult a solicitor and an accountant who are knowledgeable in pharmacy deals and can keep you right, from the outset, as to what these options mean to you in financial and legal terms.
When buying a pharmacy, you will want to ensure that you carry out appropriate checks to ensure that there are no skeletons in cupboards. This is dealt with by your advisers carrying out legal and financial due diligence, checking various aspects of the business and identifying any areas of potential concern.
4. Due Diligence 4. Due Diligence
5. Legals 5. Legals
Once all of the initial discussions and investigations have been conducted, your solicitors will draft and negotiate the various legal documents to buy the business and its premises, or take
Many pharmacies are owned by a company, and when they are sold there are two options, either you can buy the goodwill and assets of the business, or you can buy the company itself. Understanding the difference between these two routes is very important, and we would recommend that you consult a solicitor and an accountant who are knowledgeable in pharmacy deals and can keep you right, from the outset, as to what these options mean to you in financial and legal terms.
When buying a pharmacy, you will want to ensure that you carry out appropriate checks to ensure that there are no skeletons in cupboards. This is dealt with by your advisers carrying out legal and financial due diligence, checking various aspects of the business and identifying any areas of potential concern.
Once all of the initial discussions and investigations have been conducted, your solicitors will draft and negotiate the various legal documents to buy the business and its premises, or take
Buying a Pharmacy Business
on the lease of the premises if it isn’t owned by the seller. They will also give you advice on the staff aspects of the business, and the process to follow in taking on the staff.
All being well, all of this careful preparation will, with the benefit of professional advice, lead to a successful completion of the acquisition, allowing you to take forward the pharmacy and build an even more successful business over the years to come.
on the lease of the premises if it isn’t owned by the seller. They will also give you advice on the staff aspects of the business, and the process to follow in taking on the staff.
GET IN TOUCH The specialist Pharmacy Team at Thorntons regularly advises pharmacists looking to acquire their first or subsequent pharmacy and would be pleased to assist with any queries which you may have in that regard.
All being well, all of this careful preparation will, with the benefit of professional advice, lead to a successful completion of the acquisition, allowing you to take forward the pharmacy and build an even more successful business over the years to come.
GET IN TOUCH The specialist Pharmacy Team at Thorntons regularly advises pharmacists looking to acquire their first or subsequent pharmacy and would be pleased to assist with any queries which you may have in that regard.
Michael Royden Partner, Corporate and
Commercial +44 1382 346222
mroyden@thorntons-law.co.uk
Michael Royden Partner, Corporate and
Commercial +44 1382 346222
mroyden@thorntons-law.co.uk
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