Before you consider investing in pharmacy ownership, consider the following:
1. Why are there so many pharmacies for sale?
2. Why are so many pharmacists that own their own pharmacy or pharmacies implementing their exit strategies?
3. Why should I expect to get a good return on my investment if the previous owner was struggling to make a profit?
4. How many sales are actually ‘distress’ sales?
5. “Fail to plan, plan to fail.”
6. Why should I expect to do any better than the previous owner if I am not going to change the business model?
7. “If you always do things the same way, you will always get the same results.”
8. Does anyone reading this think that they are justified in repeating the same mistakes as their predecessors and expecting different results?
9. Why are pharmacists and pharmacy companies paying a premium price for a distressed business in an industry with a shrinking NHS budget?
10. Turnover is vanity, profit is sanity
11. Is the pharmacy you are about to buy a ‘repeat offender’; many 100 hour pharmacies as well as new contract pharmacies fail each time they change hands. It becomes only a matter of time. (#see 5-8)
12. “But Pharmacy Sales Agents are telling us that they are achieve sales figures 10-12%, or even more above market value”. They say there is huge demand for pharmacies, driving up selling prices, which might actually be true but is the price being paid justified or is it too much? Lies, damn lies and statistics come to mind. These figures are taken from sales data; often they don’t include the ‘no sales’, those that are re-advertised at a reduced price or transferred by the seller to a different agency. They do not take into consideration substantial agent commission, fees and other professionals’ costs.
13. “Buyer beware; don’t let that dream become a nightmare!”
Credit it to Brian Austen, EPOC Health Limited