Author: Jack Brown
It’s a common question faced by both those selling their pharmacy, and buyers looking to acquire a new opportunity. What happens to the existing staff? Staff continuity is one of the most sensitive parts of selling or purchasing a pharmacy. Buyers want clarity, sellers want a smooth transition and staff want certainty. Because pharmacy is a community-focused business, how employment is managed can have a genuine impact on goodwill and customer retention. Below is a clear guide to what is expected when staff are transferring as part of a change of ownership. The basics When a pharmacy is sold, existing…
There’s been a lot of talk lately about the high sale prices of pharmacies. It’s easy to see why many potential buyers are feeling frustrated and wondering if ownership is still within reach. Most of us have experienced the challenge of trying to buy into a hot market, whether that’s a home, a business, or a pharmacy. When competition is high, it can feel like the goalposts keep moving. Understanding What’s Driving the Market Like most assets, pharmacy sale prices are shaped by demand. When there are more buyers than sellers, prices rise during a market expansion, and when buyer…
When it comes to selling or buying a pharmacy, one of the most common questions I hear is: “Is now a good time?” It’s a fair question — especially given the endless headlines about interest rate changes, government policy shifts, global economic uncertainty, or health sector reforms. Vendors and buyers alike often assume these external forces will have a direct and dramatic impact on pharmacy values. As a result, many try to “time the market” — holding out for the perfect conditions to buy or sell. But here’s the reality: the factors that dominate the news rarely move the needle…
When acquiring a pharmacy, selecting the right franchise or banner group is a crucial decision that can significantly impact your success. Each franchise offers unique benefits and challenges, and understanding these differences is essential before signing on the dotted line. Understanding the Franchise Models Pharmacy franchises come with varying levels of support and operational frameworks. Some offer comprehensive marketing, supplier arrangements, and training, while others provide more autonomy for owners. The right choice depends on your skills, experience, and preferred level of independence. For instance, certain banners excel at targeting specific demographics, such as families or the health-conscious, while others…
As the financial year draws to a close, we find ourselves reflecting on the many conversations had about the “state of the market” for pharmacy transactions. It’s a topic that seems to be constantly on people’s minds, and for good reason. With all the changes and uncertainties faced by the industry, it’s only natural to seek some clarity. This article takes a deep dive into the AP Group transaction data to share what we’ve learned in the financial year that was FY24. To get the most accurate snapshot, we focus on the four key indicators: Average Sale Price, Capitalisation Rates,…
When talking to pharmacists about their key acquisition criteria, many often say that they are not interested in any shopping centre opportunities and will instantly dismiss any pharmacy located inside a centre owned by one of the major landlords i.e. Westfield, QIC, Charter Hall etc. While I recognise that shopping centre pharmacies may face some challenges that strip pharmacies do not, they also have advantages that strip pharmacies do not have, and should be assessed on a ‘case by case’ basis like any other opportunity. There are few key considerations when reviewing a shopping centre opportunity, and I’ve outlined some…