Is now the right time to sell your pharmacy business?

Expert commentary from Denis O'Leary of PBT (Nationwide)With a growing elderly population community pharmacies have a secure long term future writes Benjamin Hammond, Pharmacy Expert Editor. Being at the forefront of health needs and looking after local patients with extra services gives pharmacies additional growth in turnover and profitability.

Pharmacy buyers are looking to expand for a number of reasons not least because they can see a long term opportunity for community pharmacies in a sector that offers good growth with fewer of the competitive forces that affect other retail sectors.

“Understanding the needs and opportunities with the pharmacy market is why, time after time, we are selected to represent both buyers and sellers.” explained Denis O’Leary, Managing Director of PBT (Nationwide) Ltd.

PBT (Nationwide) Ltd, formerly Pharmacy Business Transfer Ltd, has been trading for more than five years with O’Leary bringing many more years experience into the process of transferring a pharmacy business.

“We have built up a varied client base which includes independents, regional groups plus the large household names that both buy and sell pharmacies through our agency” explained O’Leary.

"This presents a perfect opportunity to help companies grow faster by offering a varied portfolio of quality pharmacies with turnovers of over £750,000 per annum and NHS items averaging 6,000 per month and above. PBT (Nationwide) also assists Health Centre Pharmacies across the country with applicants where funding is already in place.

“So don’t panic, the market is the market and pharmacies are still selling whatever the business climate throws at it. We have seen £1 in the £1 and £2 in the £1 and above being paid before the Category M claw back. This announcement brought an avalanche of pharmacy businesses to the market, which in turn made it into a buyers’ market.”

O'Leary continued, "The business environment has now settled down towards a sellers’ market. Through PBT (Nationwide) many of our clients achieve 20% to 25% more for their pharmacies then they hoped for. Negotiating the best possible selling price is a core skill due to our expertise in the pharmacy sector.

“We are selling Pharmacies in the current trading conditions with prices on the higher end holding up very well and with the commitment of the purchaser to pursue the deal to completion. Vendors should look at achieving prices we were enjoying two years ago. For the special pharmacy business top prices are still being paid.”

If you agree that the time is right to buy or sell your pharmacy then please contact Denis O’Leary on 01206 323808 or mobile 07920 476222 email denis.oleary@pharmacybusinesstransfer.co.uk to arrange a meeting at your convenience.