Owning a pharmacy is not easy. Why? Because the industry is at a time where retail is under serious pressure (most retail sales we see are going backwards), rents and nasty landlords are a big problem, competition is increasing, and values in a lot of pharmacies are under pressure.
Buying a pharmacy is one of the biggest investment decisions you are likely to make.
It is a significant investment, involves significant debt, and accordingly deserves significant levels of analysis and advice to ensure you are being as careful as possible. Any business undertaking of this size involves a degree of risk, and any process that helps you reduce that risk, and gives you a greater knowledge about the financial aspects of the pharmacy that should be considered. For those pharmacists who are thinking of buying a pharmacy, understanding the due diligence process is vital.
Since 30 June 2018 valuation activity has certainly been very high.
We have seen activity pick up strongly over the last 4 months and it is looking like it will continue. As we are in the middle of the current CPA cycle demand for pharmacies is strong, particularly in the sub $3m market. We have seen several pharmacies being sold and the numbers of buyers coming to us for guidance and assistance has also grown.