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What is the pharmacy worth?
If you have been approached privately by a local independent or one of the multiples, be aware that their price objective is different to yours. You want to sell for the maximum price and they want to buy for the minimum price.
To obtain the maximum price for your pharmacy you must know what it is worth. Ask us for a valuation. Pharmacy valuation is very specialised and unlike other business sales. We had an example recently where a general business transfer agent valued a pharmacy at over £100,000 less than our market valuation. On a sale, which was worth approximately £500,000, this difference in valuation represented a substantial sum and illustrates the importance of using a pharmacy valuation expert.
Pharmacists often think that their business is valued at pence in the pound. This is not an accurate valuation method because so many factors affect the value. A few of these are:
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Location, particularly in relation to doctors surgeries.
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Security of income, with regard to doctors relocating, competition, 100 hour pharmacies etc.
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Nursing home income forming a significant proportion of turnover.
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NHS/counter mix.
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Shop rent and terms of the lease.
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Opening hours.
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Business profits. |
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If you are aware of something which could affect the saleability of your pharmacy such as the local doctors moving it is advisable to deal with this at the outset, by assessing how it will affect your business and factoring this into the asking price. You can be sure that potential purchasers will carry out their own due diligence and find out what is happening in the location. If there is something, which could have a negative impact on the business it is preferable to pre-empt the situation, rather than be confronted with a difficult situation later on which could result in the sale falling through.
If you are thinking of selling, we are happy to give you a verbal valuation free of charge.
We can also provide written valuations for Inland Revenue purposes, marital and partnership settlements etc. We do charge for this service and will agree a fee with you in advance once we know what is required.
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