It can happen sometimes—a random call or approach: “I want to buy your pharmacy.” I hear this from time to time, and it prompted me to write an article to share some of my ideas and give some food for thought.
You have received a call, and someone wants to make a direct offer to purchase your business. It all sounds good, but is it the best way to get a market-based result for selling the business you have worked so hard on?
Receiving an approach can be thought-provoking; you have a number of factors to consider. Do you want to sell? Is the performance strong? Is the business sale-ready with a good period of financial reports? Do you have any knowledge of the buyer? These are some of the many questions that could be running through your mind.
I like to consider a direct approach just the start of the selling journey. Let’s consider it a start, but it shouldn’t be your end game. Here’s why:
The motivation for a purchaser with a direct offer is to secure the business at a price that is attractive to them. If this can be done behind closed doors, away from the price pressures of the open marketplace, that is a big win for the purchaser, and not for you as the seller.
To secure the best price for your pharmacy, competition is key. Think of buying a house where you are the only bidder—you are not going to stretch a dollar further than you need to. Bring other bidders into the fold, and the added competition will likely mean you have to stretch further to be the successful purchaser. I repeat, competition is key. Anyone with your best interests at heart will tell you the same.
While competition is one key piece of the puzzle, it is not the only piece. Showcasing the strengths of your business with a compelling sales narrative and a powerful supporting dataset gives purchasers the incentive to stretch that little bit further. Communicating that sales narrative to as many qualified purchasers as possible helps broaden the pool of potential suitors.
Furthermore, having sight of which of those qualified purchasers are viewing your sales data helps narrow the focus and target the right people.
At AP Group, our purpose is to get the best possible outcome for our vendors. By instantly showcase your business to over 5,000 ready and eager purchasers—Australia’s largest network of qualified buyers, you can be comfortable knowing that your business is in front of exactly the right people. Our Data Room houses all listing information and data, ensuring confidential information is only viewed by qualified pharmacists and cannot be downloaded, shared, or printed. The formula is simple—get the best possible sales result by reaching more buyers, faster.
So in closing, while a direct approach to buy your pharmacy might seem appealing, it’s crucial to weigh your options and consider the benefits of creating competition. By showcasing your business effectively and reaching more buyers, you can maximise your sale price and ensure a successful transaction.
Written by Chris Swifte, WA State Manager – 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:
Whether it’s swimming from Rottnest to Cottesloe, cycling through the Italian Alps or taking up water polo — Chris is a full-time “doer.” He still hasn’t achieved his lifetime goal of being on the Nutri-Grain box, but he has some rather impressive runs on the board when it comes to pharmacy — so that’s pretty much the same thing.
After more than two decades in the retail pharmacy industry, Chris has the in-depth knowledge, industry relationships and leadership skills to help you reach your pharmacy goals — whatever they may be.
Prior to joining AP Group, Chris was a key member of Terry White Management and Sigma Retail’s executive leadership teams. During his time at Terry White, he successfully increased the brand from 80 stores to over 400 stores across Australia. A rather impressive feat. Chris is also qualified as a nationally accredited mediator, giving him the ability to negotiate successful outcomes in complex commercial matters.
This impressive combination of work history and education makes Chris an asset to the AP Group team and our clients. We’ll just ignore the fact he’s a Kangaroos supporter.