Thorrun Govind and Chris Peace from Brabners shared tips on buying your first pharmacy or building your portfolio at the recent Pharmacy Show 

The Pharmacy Show is a pivotal event for the key players in the pharmacy industry. It’s also an opportunity to gain fresh insights as you embark on your next healthcare venture. TV Pharmacist and Healthcare lawyer (Brabners) Thorrun Govind took to the stage for a packed session at The Pharmacy Show 2024 to share some legal hints and tips. She was joined by her Brabners legal colleague Chris Peace. We share some of the insights from their talk on buying your first pharmacy or building your portfolio here:

Govind explained that the UK pharmacy sales market in 2023 had an unprecedented initial six months owing to the decision taken by parent company Hallo Healthcare Group to divest their portfolio of over 1,054 Lloyds Pharmacies. The divestment created a fever-pitch level of demand from potential buyers both within the market and outside. Since then, other multiples such as Boots have opted to divest some branches, although on a significantly smaller scale than Lloyds.

Govind noted the uncertainty surrounding the upcoming Autumn Budget. Whilst Peace noted the expectation that the government will make significant changes to Capital Gains Tax (CGT) rules. Should (as many anticipate) the government bring in a transitional period for the implementation of any tax changes, we may also expect a heightened ‘fire sale’ flurry of activity in the upcoming months.

Govind sympathised that buying a pharmacy can be daunting, especially for first-time buyers:

Finding a Business:

Independently: You may hear of pharmacies for sale in your local area or through your network. Working or locuming at a pharmacy where the owner is looking to sell can be advantageous. If the business has not been widely advertised to the market, then you may face less competition and through your existing association with the seller possibly secure a better price. However, Govind explained that on the downside, if you are an inexperienced buyer, you may end up paying over the odds if you do not have a good understanding of valuation methodologies.

Through a Broker: Register as an interested buyer with pharmacy brokers. They can help you find a pharmacy for sale and often, the seller pays the broker fees.

Financing Your Purchase:

Determine how much you can realistically borrow and compare interest rates. Specialist financial institutions understand the pharmacy sector and are prepared to lend against pharmacy goodwill valuations.