Weekly Comment 13 Jan 20
January 13, 2020
THIS week’s contributor is Andrew Whelan, General Manager at Australian Pharmacy Group - 2020 Pharmacy Market Outlook:
So what does 2020 look like for those looking to buy or sell a pharmacy? The uncertain conditions that characterised the year just passed – namely a tightening of lending from banks and a looming 7th CPA – are largely behind us, which should afford buyers with easier access to capital and greater certainty.
If lessons can be taken from the release year of the 6th CPA in 2015, buyers and sellers can both expect more opportunity in 2020 as the typical ‘watch with caution’ approach transitions to an approach of ‘it is time act’.
With regard to lending conditions, we are seeing a healthy appetite for pharmacy transactions from the traditional major lenders. The key change being that lenders are tending to settle into a niche of what suits their risk appetite, rather than being open for business across the board. If there is strong pharmacy transaction that requires bank lending, in most cases there will be a bank there to support it. This wasn’t always the case in 2019.
The team at AP Group wish all prospective buyers and sellers all the best for a prosperous 2020.
The above article was sent to subscribers in Pharmacy Daily's issue from 13 Jan 20To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 13 Jan 20
