Now, a checklist for buying a pharmacy is not simple, and its not something that can really be comprehensively covered in 5 points. However, this guide will serve as the closest I can get to a buying a pharmacy checklist. For more details you may want to see my Buying A Pharmacy How To Guide.
So I will assume you are a pharmacist or are going into the purchase with someone who is. And I will assume you actually want to buy a pharmacy business, not set up a new one from scratch – that is a whole different ball game, and will be the focus of a completely different article.
But for now, here’s a quick fire checklist to buying a pharmacy.
- Research, research, research! – Do your due diligence, get in contact with as many people as you can. Business brokers, pharmacy managers, pharmaceutical wholesalers, just anyone who is connected to the industry. And be prepared to put your feelers out across a very large area. The perfect pharmacy for you, may not be on your doorstep.
- Crunch the numbers – once you’ve found one that seems perfect – make sure you get a good look at the accounts, and get an (accurate) measure of the profits. And I mean true net profit. If its not your area of expertise – find an accountant who is an expert!
- External factors – are there other factors that will affect the financials of the pharmacy? I.e. things like the amount of staff you’ll have to pay, is the source of income from very labour intensive services, how many hours is it open?
- Having the capital – I will assume you don’t have a huge chunk of money to buy a pharmacy. If you do, great! But if not, just remember most banks will consider a pharmacy as a fairly solid business venture. And if you do your research, it shouldn’t go wrong. Just be prepared to have a business plan prepared with cash flow forecasts and profit/loss accounts. As always, be prepared to hire a bookkeeper or accountant for this.
- What exactly are you buying? – Business assets, the company? Are you getting freehold or leasehold? Make sure you know exactly what you’re getting and make an offer accordingly.
- Can you grow the business? – this is a key factor and you will find that the pharmacies with the most growth potential, tend to attract more buyers and hence more offers. However, a pharmacy like this can get you the most for your money – just think of extra services or changes you can make to the product range, to improve the bottom line.
Hopefully this checklist to buying a pharmacy should give you a quick background in some key issues you need to focus on. Of course, I always advise you not to take my word as gospel and do your own research, but hopefully you have found this quick fire article to be of some benefit and at least feel one step closer to buying a pharmacy!