There are a number of things to consider when buying your first pharmacy, leading pharmacy broker Natalie Sirianni lists her top tips
Buying your first pharmacy can be an intimidating task! It will most likely be one of the largest investment decisions you have made up to that time.
But hopefully it will be the first of many exciting and successful investment decisions!
- Be Proactive – Take Action!
Sometimes you may just be lucky and an opportunity will present itself, however, most of the time, the more proactive you are in your research for opportunities, the more luck you’ll have. Speak to your colleagues, seek advice, attend conferences and seminars, search pharmacy listings on sites like Practice4sale , contact pharmacy brokers to see if they have any pharmacies that suit your requirements. All of these actions increase the chances of finding that dream pharmacy!
- Understand Pharmacy Values
It is integral to understand not only the mathematics of calculating pharmacy values but also the reasoning and rationale behind the methodology. In order to be able to make an informed decision regarding your offer, it is vital to understand both how the market values pharmacy and what return you will receive from the business.
- Employ Experts
These may include pharmacy valuers, bankers, finance brokers, accountants etc. It is best to deal with experts that specialise in pharmacy so that you are getting current and relevant information on the industry.
- Know what you can Afford
When looking for pharmacies to buy, first and foremost, consider your affordability. Assess your available capital, current lending rates and speak to your local pharmacy banking specialist to help you assess your affordability. It is also prudent to include any additional transaction costs in your calculations. Your affordability assessment will give you a clear objective of what to look for when buying. It’s best to focus your attention to businesses that suit your current situation.
- Get your Finance Ready
Once you’ve assessed your affordability, start to get your finance ready. This not only shows your readiness to the brokers and vendors you are dealing with but also helps the deal progress much quicker from offer acceptance through to settlement. Speak to pharmacy bankers in your area and finance brokers. It also speeds up the process if you have your capital and all of your paperwork in order and ready to go.
- Do the Maths
Even if you have employed experts, make sure that you understand the calculations involved in the purchase and make sure you do them yourself. Check the calculations thoroughly to ensure they are relevant to your specific situation.
- Start thinking like an owner and build your business skills
Once you have gone through all the steps and purchased your first pharmacy, now comes the ownership! Business ownership skills are vital to the future performance of your pharmacy. Learn as much as you can about this by enrolling in courses, reading books and try to gain as much experience and knowledge from your colleagues and current employers. Also, build a team of advisors and mentors around you to assist when owning the pharmacy.
And remember that your preparation is vital in getting you that dream pharmacy! If you have everything in place early, when that business comes on the market you can act quickly and not miss out on the opportunity. Your dream pharmacy may be equally attractive to a number of other pharmacy buyers. Good business will sell fast, so make sure you get in early to avoid any disappointment!
The Medici Capital Pharmacy Ownership Ready Conference is being held in the Gold Coast in February next year and is a must attend event for any prospective pharmacy owner. The conference will include a range of sessions on how to buy a good pharmacy at a great price, understanding financial statements, valuation principles, legal factors, partnerships and much much more! I will be there with Attain as a major sponsor and look forward to seeing you there!
Contact Natalie Sirianni at Attain Business Brokers on 03 9853 7933 or click here