Embarking on a pharmacy transaction is an exciting yet complex journey. Whether you’re buying or selling, the process involves navigating a maze of legal, financial, and logistical challenges. To make the journey smoother and more successful, having the right team in your corner is crucial. Here’s some advice on how to select your dream team for your next pharmacy transaction.
The Legal Eagles: Selecting the Right Lawyers
When it comes to legal matters, there are qualities and skills you should look for in your lawyer to ensure they are the right fit for your needs.
What to look for:
Regulatory Knowledge: Pharmacy transactions are governed by a complex set of regulations. Look for lawyers who specialise in pharmacy law to ensure full compliance and avoid legal pitfalls.
Contracts Experts: A specialist will draft and review contracts that cater specifically to the pharmacy industry, protecting your interests and clarifying all terms.
Focused Due Diligence: Expert lawyers conduct due diligence with an eye for pharmacy-specific issues, identifying potential legal problems early on.
Experience: Beyond industry specialisation, look for a lawyer with a solid track record in handling similar transactions. Experience often translates to better foresight and problem-solving abilities.
Communication Skills: Your lawyer should be able to explain complex legal concepts in a clear, understandable manner. Good communication ensures you stay informed and confident throughout the process.
Reputation and References: Check for client reviews and ask for references. A lawyer with a good reputation and positive feedback from previous clients is likely to provide reliable service.
Availability: Ensure that the lawyer you choose has the time and resources to dedicate to your case. A lawyer who is overextended may not be able to give your transaction the attention it deserves.
Fixed Fee: Legal services is a competitive market and as such, you should be able to get a highly qualified, industry expert to pre-assess the amount of work involved in your transaction and, quote you a fixed price. Always be wary of any service requiring hourly rate as these almost never come in below the original estimate and, in my experience, are usually way over!
The Number Crunchers: Choosing Your Accountant
Handling the finances of a pharmacy requires more than just basic accounting skills. Pharmacy-savvy accountants offer insights that general accountants might miss, ensuring your financial health is accurately assessed.
What to look for:
Industry Insight: Select accountants who have experience with pharmacy finances, as they can provide a detailed analysis tailored to the unique aspects of the business.
Tax Expertise: Look for accountants who understand the specific tax implications of pharmacy transactions, helping you minimise tax burdens.
Accurate Valuations: Industry-expert accountants can give you precise valuations based on pharmacy-specific benchmarks, ensuring you know the true worth of the pharmacy.
The Finance Gurus: Finding the Right Finance Brokers
Securing the right financing is often a critical component of a successful pharmacy transaction. Finance brokers who specialise in the pharmacy sector can offer tailored solutions and access to the right lenders.
What to look for:
Lender Relationships: Choose brokers with connections to lenders who understand the pharmacy business, ensuring competitive rates and favourable terms.
Customised Financing Solutions: Specialists can tailor financing packages to meet the specific needs of your transaction, whether it’s purchasing a new pharmacy or expanding your current operations.
Efficient Processes: Pharmacy-focused brokers streamline the financing process, understanding industry-specific timelines and requirements.
Other Tips for Selecting Your Dream Team
While choosing pharmacy industry specialists is crucial, there are other factors for consideration to ensure you have the best team supporting your transaction:
Research and Referrals: Start by researching professionals who specialise in the pharmacy industry. Ask for referrals from colleagues or industry associations to find trusted experts.
Experience Matters: Look for lawyers, accountants, and finance brokers with a proven track record in the pharmacy sector. Experience with similar transactions can provide valuable insights and smoother processes.
Ask the Right Questions: When interviewing potential team members, ask about their experience with pharmacy transactions, understanding of industry regulations, and approach to common challenges.
Check Credentials: Ensure your chosen professionals have the necessary credentials and licenses to operate in the pharmacy industry. This adds an extra layer of assurance of their expertise.
Communication Skills: Effective communication is key. Choose team members who can explain complex issues in a clear and understandable manner and who keep you informed throughout the transaction.
Collaborative Approach: Your team should work well together. Ensure that the professionals you choose are willing to collaborate and share information seamlessly, as a cohesive team effort is essential for a smooth transaction.
Client References: Don’t hesitate to ask for references from previous clients. Hearing about others’ experiences can provide insight into what you can expect and help you gauge the effectiveness of potential team members.
Putting Together Your Dream Team
By assembling a team of pharmacy industry specialists who also meet these additional criteria, you’re not just mitigating risks—you’re positioning yourself for success. These experts understand the nuances of the industry and can provide tailored advice, making your transaction smoother and more efficient.
In conclusion, selecting your dream team for a pharmacy transaction involves a careful choice of industry-specialised professionals and considering other key factors like experience, communication skills, and a collaborative approach. With the right pharmacy-focused lawyers, accountants, and finance brokers, along with a well-rounded selection process, you can navigate the complexities of your transaction with confidence and ease.
Written by Robert Whelan, Managing Director – AP Group
AP Group are the leading pharmacy experts in Australia, helping hundreds of pharmacists into ownership every year – our team can help with sourcing finance for your purchase, as well as providing the right legal advice to help you navigate the process.
We connect existing pharmacy owners with over 5000 ready and eager investors via our cutting-edge online Data Room. Our Data Room keeps confidential listing data secure and allows buyers to make informed decisions on each of our pharmacies for sale.
About the Author:
Rob Whelan’s hardworking and entrepreneurial nature is how he built AP Group from start-up to the largest specialised pharmacy brokerage in the country. And he’s showing no sign of slowing down (his two young, energetic daughters will make sure of that, too).
Thought leader. Problem solver. Big picture thinker. They’re a few of the words often used to describe Rob.
He’s worked in the pharmacy space for more than 2 decades — from franchise development at Terry White Chemmart to Operations Manager of the Pharmasave Group. He’s also held roles in branded OTC products, generic and branded medicines, brand development and pharmacy group operations. With a resume like this, it’s easy to see why there are few people in the pharmacy industry with such diverse knowledge as Rob.
When asked what he loves most about his role, Rob is particularly proud of the team they’ve built. Each individual brings their own unique experience to the role, all coming together to form a close-knit team with shared goals. For Rob, being able to have a positive impact on their career (and life) is what gets him out of bed each morning. Well, that and having to make the school lunches.