Whether you’re a young pharmacist exploring partnership opportunities, looking to buy your first pharmacy, expanding your business portfolio, or returning to the market after time away, purchasing a pharmacy is a significant decision that requires careful planning.
The pharmacy sector has seen many changes in recent years, including the rise of telehealth, growing emphasis on professional services, and evolving consumer preferences. To help you navigate the process, here are the top five tips to consider before buying a pharmacy in 2025:
1. Understand the Market and the Process of Buying a Pharmacy
The pharmacy market continues to be competitive, with demand for high-quality businesses outstripping supply in many areas.
Stay Informed: Research current trends, such as changes in Community Pharmacy Agreements (CPA), PBS reforms, or state-specific regulations.
Work with Experts: Consult pharmacy brokers, accountants, lawyers, and finance brokers who specialise in the sector. These professionals can help you understand market conditions and guide you through the highly regulated buying process. We have specialist pharmacy finance brokers and lawyers at AP Group so feel free to reach out if you would like any guidance and advice.
Be Prepared to Act Fast: High-quality pharmacies, particularly those in regional growth areas, often sell quickly—sometimes within days so make sure you are prepared to go with your finance and budget.
2. Build the Right Connections and Stay in Regular Contact
Your network can be a key factor in securing the right pharmacy.
Collaborate: Establish relationships with pharmacy brokers, pharmaceutical wholesalers, pharmacy lenders, and industry-specific accountants.
Join Professional Networks: Attend industry events, participate in forums, and engage in continuing professional development (CPD) opportunities to stay connected.
Communicate Proactively: Regularly update your contacts on your buying preferences to ensure you’re top of mind when opportunities arise.
3. Define Your Goals and Budget Clearly
Knowing what you want—and what you can afford—is critical to your success.
Set a Budget: Work with a pharmacy lender or finance broker to understand your borrowing capacity.
Assess Locations: Consider whether you’re open to regional areas or interstate opportunities, which often offer more competitive pricing and less saturated markets.
Identify Business Fit: Define your ideal business size, style, and focus (e.g., dispensary-heavy, professional services, or retail-oriented).
4. Know Your Strengths and Weaknesses and Back Yourself
Every pharmacy has unique demands, and understanding your skill set will help you choose the right fit.
Self-Assessment: Reflect on your experience in areas such as business management, customer engagement, and professional services.
Upskill if Needed: Take courses or seek mentorship to fill any knowledge gaps, whether it’s in financial management or leadership.
Be Confident: If you’ve done your homework, trust your abilities and take the plunge.
5. Balance Due Diligence with Timely Decision-Making
While analysis is essential, hesitation can lead to missed opportunities.
Prepare in Advance: Learn how to assess pharmacy financial reports, including profit margins, scripts per day, and stock levels.
Leverage Professional Help: Accountants and brokers can conduct detailed due diligence to confirm the business’s viability.
Act Decisively: Recognise when the timing is right and avoid overanalysing once you’ve identified a good opportunity.
Additional Tips for Success
Stay Current: Subscribe to industry newsletters and follow pharmacy associations to remain updated on legislation, market trends, and opportunities.
Future-Proofing: Consider the potential for additional revenue streams, such as vaccination services, professional consultations, or e-commerce options.
Buying a pharmacy is a life-changing milestone that can lead to professional growth and financial success. By preparing thoroughly, building a strong network, and trusting your instincts, you can turn this exciting opportunity into a rewarding venture.
Good luck!
Written by David Gilbert, SA & NT 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:
An infectious personality, family man and golf enthusiast. David is the kind of guy you’ll meet in person and leave feeling more energised than when you arrived. If he could play golf twice a day, every day, he would. But for now, he fits golf around his four kids and genuine love for helping pharmacists reach their goals. Busy guy.
Before entering the retail pharmacy industry, David owned and operated the Austral Hotel in Adelaide for 12 years. His personable nature, charisma and passion for hospitality saw him grow the business to an iconic hotel recognised by almost every South Australian (and beyond).
When it was time for a career change, David embraced the opportunity to enter the pharmacy space, bringing his hardworking and adaptable nature to the role. When asked what he loves about the role, it’s hands down the people, relationships, travel and using different parts of his brain.