If you're thinking of buying a pharmacy, before you dive into the world of prescriptions and pill bottles, there's a lot to think about. From navigating government regulations to checking out the financial health of your dream pharmacy, there's plenty to consider.
This guide examines how you can find the right pharmacy to buy, how much it costs to buy a pharmacy and how to find the right business loan to fund your purchase.
Make sure you consider the following factors if you're considering buying a pharmacy:
The price you'll need to pay depends on a range of factors. These include whether you buy a freehold or leasehold pharmacy, the size of the business, the number of staff employed and the range of products it sells.
The true value of a business can only be determined by analysing a long list of factors, including the following:
To get an accurate idea of just how much a pharmacy is worth, you should engage the services of an accountant or business broker. They will be able to examine the business as well as its strengths and weaknesses to help determine a fair value.
Before you buy a pharmacy or any other business, you'll need to examine and analyse the following factors:
Banks, credit unions and a wide range of non-bank lenders can provide the business loan financing you need to purchase a pharmacy. However, it's not just as simple as filling out a quick application form with your personal details and the amount you want to borrow; you'll need to prepare a detailed business plan to prove your reliability as a borrower.
The lender will want the following details:
Your accountant can run you through the process of developing a detailed business plan and loan application to help you find the financing you need.
Although borrowing criteria vary between lenders, you will generally be able to access 75% of the business's value. If you use your residential property as security, loans for up to 100% of the business value are available.
Yes, many lenders will offer the option of interest-only repayments for a fixed period.
It can be quite difficult to get approval for a loan to set up a pharmacy in an existing suburb due to the fact that there is most likely already plenty of well-established competition in place. However, you may be able to find financing if you want to set up a pharmacy in a new or expanding suburb.
Yes. Depending on the type of pharmacy, you may need equipment such as wheelchairs, walking aids, bathroom aids, refrigerators, incubators, breast pumps, scales and more. When buying a pharmacy, it's also important to consider your equipment finance needs.
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Hi there
I’m a pharmacist and planning to go for partnership with other pharmacy owners. I’ve got $440K in savings that I would like to put down as a down payment. I was wondering if you have the service to act as a lender and get a pre-approval a loan.
Regards
Michael Abdelmalek
Hi Michael,
Congratulations on your new adventure!
To see what options you have to finance your new business, you can click on any suitable options in this table and select the green “go to site” button.
You may also want to engage a lawyer and an accountant, to make sure you set your business up with the ideal ownership structure that allows you to take advantage of the most tax effective strategies that offer legal protection (especially important when going into business in partnership).
Hope this helps!