Pharmacy Partnership
Due to increasing business size and value, and the need for succession planning, owners with viable businesses are seeking junior partners to join them. Likewise up and coming pharmacists wish to own larger businesses.
Such sales of equity will necessitate the development of industry-accepted principles and finance approaches for succession.
Practices have used multi-practitioner professional partnerships to attract appropriate staff and rewared specialised skills. Pharmacists, like other professionals, are seeing the evolution in the admission of junior partners. Also, with almost 60% of existing practitioners ready to retire in the next 10 years, partnerships will become a practical way for the profession to retain their skills.
Valuations for succession purposes require a different apprach. While the valuation method might be similar, there are a number of specific questions. These include:
- Asset structure and maturity;
- Consultant pharmacists roles and contracts;
- Guarantees granted by partnership to financiers and other partners;
- Family law matters;
- Contracts held by the practice (ie nursing homes, special accomodation);
- Retirement trends and plans; and
- The age and influence of existing partners.
If your are interested in looking into entering into a partnership, Medici Capital can provide guidance and assistance, both in the analysis of the business pre and post new partnership as well as providing guidance in the structure of the partnership agreement. We look forward to your enquiries.