Frank Sirianni explains how to get a quick and good sale when you’re ready to put your pharmacy on the market
For many pharmacy owners, selling their pharmacy is a once in a lifetime event.
Often, the value of your pharmacy is also your major asset and a key feature of your personal retirement plan. So getting the process right is critical for both you, your family, and your team.
Over the next few weeks/months practice4sale will provide tips on selling your pharmacy.
Tip 1 – Be ready
This tip has 2 elements:
- Get yourself ready; and
- Preparing your pharmacy for sale.
Getting yourself ready
For some, the decision to sell is an easy one with few personal challenges. Others struggle with the emotional process of letting go and selling the business which they have built. Other suggestions include:
- Discuss the process with your trusted advisers and other pharmacy owners who have been through the process.
- Give some thought to what the next chapter of your life might include.
- What are your real financial needs beyond business ownership?
- Surround yourself with a support team who be there for you on the emotional rollercoaster of selling a pharmacy; setting a realistic price, negotiation, dealing with the inevitable delays, and just letting go!
Consider the business, personal, financial, estate and tax issues. Also, use a consultant who is trained and pharmacy experienced to help you wrestle with these issues.
Pharmacies generally taking longer to sell. Start early and prepare your pharmacy for sale.
Most importantly, if you decide to sell and the time is right for you, you must commit to the sale process while continuing to manage your pharmacy to ensure its value does not decline.
Preparing your pharmacy for sale
Preparing your pharmacy for sale can include:
- Check your business – review your pharmacy from a buyer’s perspective and assess what you need to tidy up and what strengths you need to build further.
Often the key strengths of many pharmacies are their management team and specialty practice. If this is the case for your pharmacy, make sure these are secure and transferrable to a new owner.
- Cleaning up your pharmacy – both financially and physically.
- Having the financial and other information that your broker will require to sell your pharmacy.
- Identifying and strengthening the key features of your pharmacy which drive value and buyers will look for.
- Select a broker who knows pharmacy, you can trust to deal with your pharmacy professionally and confidentially, and you can work with.
- Seek advice from a solicitor who has pharmacy experience and work with your accountant to understand any documentation and arrangements which will need to be completed on business sale. Pharmacy business sales require a detailed understanding of a number of pharmacy specific regulatory requirements. Specialist pharmacy expertise is invaluable.
- Gather the information that will be required for due diligence once an acceptable offer is made
Visit and register to use www.practice4sale.com.au for free today and see how it works for yourself.
Definition: what is an open and transparent market?
In economic terms, a market is open and transparent if all interested market participants know as much as possible about the assets (businesses) available for sale including how many assets (businesses) are available for sale, at what price, and where. Transparency is important as it is one of the economic condition for a free market to be efficient in economic terms.
Practice4sale.com.au is an independent website dedicated to helping vendors (and their business brokers) attract more potential buyers and get you top dollar while keeping the identity and location of your pharmacy private. This means less risk of your staff or competitors finding out about your plans, or your financial and operational details.
Practice4sale was established to create an open and transparent market for the sale of pharmacies throughout Australia.