You see there is this thing called Covid. You may have heard about it (I say this with most of Australia currently in lockdown.) In the world of valuations, it provided just another challenge amongst a whole raft of issues we need to consider. In simple terms from a valuation perspective when considering Future Maintainable Earnings, EBITDA becomes EBITDAC, earnings before Covid.
Someone asked me the other day, what are the basic things a pharmacy business needs to do to always see improvement. If I lean on the brains trust at Peak and reflect on the successful pharmacies that I know, and the effective owners that I admire, there are some simple things that you can do. It is all about getting the basics right and doing them well.
Managing the financial arrangements for partners in a partnership is mostly a straight-forward process. But often made complicated and messy by not paying attention to the financial arrangement between partners and the associated implications. If these are kept untidy they can potentially lead to disagreements later on, particularly when partners are exiting the business.
It’s been over a year since COVID-19 dramatically entered into our lives and it continues to disrupt the lives of the Australian community and all countries worldwide. What has been recognised amongst this chaos is the integral part that community pharmacy plays in the lives of the everyday person. So, before we get into the juicy details of the Budget, I just wanted to acknowledge the pharmacy industry and what an incredible job they have done in keeping our community safe and healthy over this difficult period.
Business ownership is a very emotive thing. We intuitively have a reasonable grasp of what is happening in our businesses from the day to day involvement, and from the conversations we have with our team. But as I have learnt, and other clients too, decisions based on emotion are rather dangerous. Sometimes what we think is happening is very different from what is actually happening. Politics, agendas, and biases come into play, often unintentional too. The best decisions are those back up by data and statistics. Data Analytics is a big part of modern-day business.
