THIS week's contributor is - Robert Whelan, Managing Director of AP Group - Independent pharmacists are winners: Retail Pharmacy markets have proven to be resilient despite some of the negative publicity around ongoing profitability. There continues to be strong buying demand from independent pharmacists who believe they have what it takes to succeed in the space.
Independent pharmacists represented ~90% of total pharmacy business purchases from AP Group over the previous year. While the larger groups remain active in the market, they have been more selective in which businesses they purchase.
Throughout the last year AP Group did see a slight reduction in the average sale price from ~$2,000,000 to ~$1,850,000, which can largely be attributed to the lack of 'high value' pharmacies on the market.
Perhaps most interestingly in 2018, the average time from listing for sale with AP Group to selling was only 2 months. Managing the settlement process is still highly important as tightened financier criteria can still cause some delays. The major wholesalers' appetites to support their members is stronger than ever which is supplementing the tighter lending criteria.
With an estimated 100+ pharmacies on the market at any one time and strong market competition, the outlook for the coming year is strong for buyers and vendors alike.
The above article was sent to subscribers in Pharmacy Daily's issue from 04 Feb 19
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