Valuation trends in pharmacy land continue to change and evolve with the times, particularly in the weird world we live in now. There have been a number of issues we have had to contend with over the past few years which have made valuations challenging. Even though we “dare” to consider life after Covid, there are still significant issues we need to address in current valuation reports.
In previous years there have been significant challenges raised, relating to cashflow boost, Jobkeeper, rent abatements, very abnormal trading months and even individual store issues such as heavily reduced turnover and excessive turnover in some cases.
Despite the issues being raised, the principals of valuation methodology remain the same and must be consistently applied. Now being in the first half of the 2022 calendar year, we face a new phase of pharmacy trading life, and with that brings a different set of issues that we must tackle. I have identified below some of these key issues below.