Practice4Sale Blog (Page 16)

A new web-based listing service will assist pharmacies and their agents to buy, sell and lease pharmacy practices. To be launched at the Australian Pharmacy Professional conference, www.practice4sale.com.au will also enable users to sell, buy or lease practice sites, seek partnerships or equity partners, or find employment.

When looking to sell your business, you will undoubtedly be faced with the issue of the agent's commission. All business brokers (and real estate agents) are required to advise that commission are negotiable and you have a right to discuss the commission structure with your agent. However, be aware of the process when doing this - you really do get what you pay for and often those offering lower commissions also provide less of a service. Your aim should be to set a walk-away price from the sale - what you receive after the agent's commission. And at the end of the day, when you put your business to market you want your broker to be pushing hard to get the best return for you - how they negotiate their commission will be a good example of their negotiation skills. If they're willing to cut their own commission to get the deal, how hard are they going to negotiate with buyers for your business?

A new pharmacy for sale has been listed in Sydney, near the Sydney CBD. "With a history of long pharmacy ownership, it is unlikely to be offered for sale again any time soon! This pharmacy has a strong history of good returns - operating since 1930 in the same location! With current turnover for the 2011 Financial Year at $1.13 million, gross margins at 30.22% and generic substitutions at 11%, the business provides a tremendous opportunity for improvement and development." For more information, visit Practice4Sale.

Following the change in the Pharmacy Location Rules many pharmacists have been concerned that these changes will have a detrimental impact on the value of pharmacies. These concerns have been fuelled by industry rumours also hinting of drops in pharmacy values. However in the majority of cases, there is no correlation between Pharmacy Approval Number values and the value of a pharmacy as a going concern. In response to these rumours, Medici Capital has released a piece to address the myths present in the industry.