Pharmacy market strong

LOW interest rates combined with renewed positivity around the Seventh Community Pharmacy Agreement (7CPA) are fuelling optimism in the sector, Attain Business Brokers Director, Natalie Sirianni, believes.

During a video market update published on Facebook earlier this week, Sirianni said transactions were continuing to go ahead despite the COVID-19 crisis, with potential buyers up-beat about the future of community pharmacy.

“The market’s been really strong, there are plenty of buyers out there, and all the transactions that are in play are still going through,” she said.

“The main issues that we’re dealing with are some delays, particularly with the bankers, the lawyers and the advisers all working from home have caused a bit more complexity [than usual].

“But everything’s going ahead pretty strongly and there’s plenty of positivity amongst buyers, obviously two key factors being, the CPA - it’s sounding like it’ll be a lot more positive than we perhaps thought in Feb or Jan, and only time will tell, but hopefully we’ll have some news on that soon.

“And the second item is low interest rates and access to capital is going well, so the buyers out there are definitely very positive about those two key factors in particular, and that’s reflected in the market where we’re seeing a lot of interest out there.”

Speaking during the same update, Medici Capital Managing Director, Frank Sirianni, said the COVID crisis had created opportunities for pharmacy owners to strengthen their businesses, including reviewing the location of their pharmacies.

He also advised owners to reassess their business model and focus on “core principles” to make it “easier for patients to get their care in these [difficult] times”.