If you’re thinking of selling your pharmacy, here’s a few things you should bear in mind before making any decisions….
- 1. If someone (private approach, corporate, anyone!) knocks on your door do not accept their offer without getting the value independently checked yourself. Independently, means you find and appoint the valuer yourself and not be guided by the prospective purchaser to a valuer they suggest.
- 2. Don’t immediately tell your staff you are planning to sell. A conversation that starts ‘I am planning on selling my pharmacy. I don’t know who to or when it will happen but don’t worry’ is guaranteed to get your team to worry. There is the right time and way to handle this sensitive issue.
- 3. Don’t spend lots of money improving the look of your pharmacy to impress a buyer. This spend will be immediately depreciated and may not suit your buyer.
- 4. Don’t assume all sales agents operate the same way – some take payment from the buyer whilst having a duty of care to the seller which creates a conflict of interest.
- 5. Don’t give your business partner an open ended opportunity to buy your pharmacy. Impose a time limit and when this is reached engage a reputable sales agent to take it forward on your behalf if there has been no significant progress. The lack of competition is unhealthy and is often taken advantage of.
- 6. Don’t book your cruise too early! Selling can take months and keeping calm through the process is important so that you can stay focused and not make emotional decisions.
- 7. Don’t allow your solicitor to dictate the pace of the transaction – they take ‘instructions’ from you. You need to drive the deal and make sure your deal is a priority.
- 8. Don’t listen to stories about banks not lending to pharmacists to buy. Utter tosh! FT&A Finance has arranged over £140m of loans in the past year.
- 9. Don’t underestimate the personal commitment and resolve required to get through the process. It willbe time consuming and could be stressful. This can be minimised with good quality advisers around you. Anyone who tells you it will be easy and quick are either lying or haven’t the experience to know the reality.
- 10. Don’t assume your landlord will be accommodating about extending your lease, even if you are on good terms. Very often they are slow to deal with it and we have seen cases where a landlord has been paid up to £50,000 to extend a lease from 3 years remaining to 15 years.
If you follow these tips it will dramatically improve your chances of achieving a successful sale.