THIS week's contributor is Peter Marshall, Managing Director - Pharmacy Solutions Australia - What do Pharmacy buyers look for?
Every pharmacy that is sold is unique. The mix of sales - dispensary v retail, the mix of drugs sold in the dispensary, the lease situation, is there nursing home work, and so on. So what are the facets of a pharmacy business that are considered most desirable by buyers in the current environment?
In terms of security of the business - the lease and rent are obviously very important, equally important however is having a complete understanding of the competitive forces surrounding the business -- these are the key factors that drive rate of return.
There are however numerous other aspects of the business that can have a positive bearing on a buyer's perception of opportunity -- some of these positive influences include;
* An increasing turnover is highly desirable
* Gross profit percentage is not high with no large fluctuations in previous years
* The wage percentage is not low
* Low generic substitution
* Little or no external business (e.g. nursing home)
* Low stock levels per square metre represents a great opportunity for a pharmacist with retail skills.
Simply put, obtaining a pharmacy that has multiple avenues for growth is the key to what is desirable to buyers.
The above article was sent to subscribers in Pharmacy Daily's issue from 10 Dec 18
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