| On dispensing you can expect to make a gross margin of between 18 per cent and 22 per cent, whereas OTC sales will give you in the region of 30 per cent to 35 per cent, so a good mix will provide a sensible margin and the security of NHS dispensing. |
Business plan No matter from whom you will be borrowing, a proper presentation of your business plan will make your task much easier. Here again the vendor's agent will be pleased to advise you on the procedures. |
| Assuming you have chosen your geographical area, you will need to consider the various types of business on offer. |
Similarly, you need to check whether another agent has a client who has insisted on offering his business at an inflated price. |
Those in suburbia are usually less attractive to multiples because of their secondary positions and, therefore, offer good value opportunities to independents.
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) This leaves a band of turnover between . |
| A quick look at the classified advertisement section of The Pharmaceutical Journal will identify a selection of agents of all sizes and in various locations. |
A quick look at the classified advertisement section of The Pharmaceutical Journal will identify a selection of agents of all sizes and in various locations.700,000 and, the larger the turnover, the greater the competition and the more likely for a premium price to be achieved. |
| In recent years, larger businesses have become available to first-time buyers due to the support offered by wholesalers. |
Your agent should be pleased to explain the basic principles of pharmacy valuation. As the Office of Fair Trading has made us all too aware, nothing is guaranteed for ever. |
| Agenda for 2003 The Pharmaceutical Journal Vol 270 No 7246 p578-580 26 April 2003 This article Reprint Photocopy PDF * 130K Features Buying a pharmacy: A guide for the first-time buyer By Nick Holland-Brown, FCIS, FCMI Buying and managing their own pharmacy business is something that recently qualified pharmacists sometimes aspire to, but knowing where to start is often a problem. |
Turnover Having arrived at your budget figure the next decision is what to buy. Since you are unlikely to have a track record with suppliers, you will have to rely on a bank reference and possibly character references, so strike up a good relationship with your bank as soon you can. |
| The best of these are usually close to a doctor's surgery and also have a thriving OTC trade. Also in this group will fall pharmacies adjacent to or within a health centre. |
True value The true value of a business was referred to above. Your agent should be pleased to explain the basic principles of pharmacy valuation. |
| Once your offer is accepted you may be asked to lodge a returnable deposit with the vendor's solicitor, which he will hold as stakeholder acting between the parties. When both parties have agreed the terms, exchange of contracts is usually followed immediately by simultaneous completion. |
There are exceptions to every rule and it may be that a poorly performing business is simply not being competitive.
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