What can I expect when I sell my pharmacy?
SELLING a pharmacy has become increasingly more sophisticated over the last 20 years, ramping up a great deal in the last five. With the banking royal commission having a bearing on banks’ willingness to lend, landlords trying to protect decreasing property values, the increasing proliferation of discounters and the continual winding back of the PBS, transacting a pharmacy has become a minefield of commercial issues.
The reality is that rates of return have not changed dramatically over the last few years but the calculation of the businesses adjusted net profit has become much more conservative as financial institutions attempt to lessen the risk of pharmacy purchase.
There is a growing culture of putting an offer on a pharmacy and relying on the bank valuation to assist with ratcheting the price back, should the price paid be over the valuer’s opinion. Genuine buyers are highly sought after and are getting more opportunities to purchase than those buyers described above.
So what you can expect when selling your pharmacy is plenty of people telling you what it is worth, so having some trusted, experienced advice along the way is very important.