What’s the secret to a winning first pharmacy purchase? Natalie Sirianni looks into the key factors
The Australian Bureau of Statistics (ABS) recently released the November Housing Finance Data which showed that, “In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 18.0% in November 2017 from 17.6% in October 2017.”
That is, first home buyers now make up almost 1 in 5 of all housing finance loans throughout Australia.
This had me consider what the case may be for pharmacy purchasers and what is the proportion of first time buyers?
While the population data on this statistic may be difficult to obtain, I had a look through our own data for Attain purchases throughout 2017. Of the pharmacies sold, 31.5% of the pharmacies were purchased by first time buyers.
This was interesting to me, as I assumed that the proportion of first time buyers would be lower than one-third. And also a great sign for the future of the profession and market.
Even when you look at the purchase prices (as opposed to the number of sales), our data shows that the first-time buyers purchases made up approximately 21.1% of the total purchase prices for the pharmacies sample.
So, what made these first-time buyers successful in the purchases of these pharmacies?
The successful first-time buyers that we dealt with showed the following characteristics and traits:
- Financially Prepared – they were all financially prepared for the process and had checked their capacity to buy with bankers and/or finance brokers.
- Communicative with broker – they all were communicative with us as the business broker as to their financial capacity, what type of business they were looking to buy, their plans and kept in regular communication with us.
- Pharmacy Mentor (who is also an owner) – most of them also had a mentor who is a current pharmacy owner, who they could discuss matters with throughout the process.
- Worked with pharmacy specific advisors – they all worked with advisors (solicitors, accountants, finance brokers, bankers, valuers etc.), who specialised in pharmacy and knew the industry.
- Committed to buy – all of the successful first-time buyers had a strong resolve and were determined to buy a pharmacy business. They made choices and sacrifices accordingly.
- Entrepreneurial spirit – not all, but many of them also had an entrepreneurial spirit and loved the idea of owning their own business. They purchased the pharmacies with many ideas for improvements to be made.
As a first-time buyer, it is important that you are knowledgeable and know the process while also understanding the risks.
We wish you all the best for your search for a pharmacy purchase and hopefully 2018 will be the year for your successful pharmacy purchase!
These topics and many others about the process and how you can achieve the successful pharmacy purchase of your dream pharmacy are being covered at the Medici Capital Pharmacy Ownership Ready Conference in February 2018 on the Gold Coast. Attain is sponsoring this event and I will be speaking at the conference. The event is now SOLD OUT, but to ensure you are kept up to date about further resources and the next conference, click here