Pharmacy Daily | Plan ownership exit early: Sirianni

PHARMACY owners considering selling up should think carefully before listing their businesses for sale, Medici Capital Managing Director, Frank Sirianni, believes.

Delivering the latest Sirianni Market Update earlier this week, Sirianni noted former owners often look to buy back in having taken some time away from the profession.

He recommended owners should consider developing a succession plan to ensure a "staged exit", rather than walking away from a business they have an emotional attachment to, noting many regret selling up too soon, and look to buy back in.

"If you feel reluctant to sell, if you feel that it's difficult to go, but you can't cope with the workload as it is, then a succession plan may be a good way to go," he said.

"[It] gives you the opportunity to plan your exit, to have some specific deadlines, which might be varied, but the reality is you might map out a scenario of how you're going to exit, which might be over a three, five or 10-year period depending on your age and circumstances.

"That can be a very good way to go, and equally, we're finding that there are a lot of pharmacy owners in their 40s and 50s that are starting to think about that sort of strategy as a way of getting balance in their life."

For those looking to sell up, Sirianni stressed the need to be realistic about the value of the business.

"Often pharmacy owners, particularly people who've been involved in the business for a long time will become emotional about the business and its value," he said.

"They have an expectation of a price which is unrealistic, based on the level of debt that they're attached to the pharmacy for personal reasons.

"Often they ignore the fact that their house might be debt free and their holiday house may be debt free, so they see that the pharmacy should cover all the debt that they had in their life by the single sale price."

Speaking during the same update, Attain Business Brokers Director, Natalie Sirianni, told owners looking to either sell up completely or enter a succession plan, that preparation time was critical.

"It's important that you don't leave that decision till the last minute," she said.