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Finance

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From past experience, you'll probably know that financial services for Health professionals have been far from ideal: solutions that don't really meet your needs, long waits for approvals, impersonal service and rates that might look good on the surface but, when combined with hefty fees, are far from competitive.

Medici Capital changes all that. We have access to bankers who really understand the health industry and want to develop a responsive relationship with their clients. We'll work with you to develop and implement a financial structure which best matches your present - and future - business needs. What's more, we'll give you the kind of things you've always wanted in your financing:

  • Flexibility, especially a willingness to lend against goodwill;
  • Prompt availability to finance;
  • Competitive rates;
  • Limited bank charges, resulting in substantial overall savings;
  • Personal service to you; and
  • Property based finance.

All proposals are specifically tailored for your needs and remain confidential.


Buying A Business

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Buying a practice is challenge for the inexperienced and young professionals.

A good practitioner doesn't necessarily make a great practice owner. The burden of ownership and practice management require specialised development and training. While some are instinctively good at it, most will need to develop their management skills (or those of their support team) to match their professional skills.

We have found that informed buyers ask the right questions and gather the important information early in the process. This gives them a head start in the negotiating process.


Benchmarks

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A benchmark is a point of reference for a measurement. The term originates from the chiselled horizontal marks that surveyors made into which an angle-iron could be placed to bracket (bench) a levelling rod, thus ensuring that the levelling rod can be repositioned in the exact same place in the future.

Use this category as a resource to better understand what benchmarking is and how it can be used in your analysis to improve your businesses performance.


Pharmacy Rents

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Medici Capital recently developed a new measure for use in assessing fairness and equity of tenancy arrangements. Following publication of the approach in the PharmacyNews arising from my presentation at the 2007 APP, a major clothing manufacturer/retailer has adopted the Medici Capital measure for all its rent negotiations worldwide. The measure is a new approach to an age old problem.

Who takes the risk? Whose business is it?

Most pharmacy owners and managers know that pharmacy rents and occupancy costs are a significant and increasing cost. Generally occupancy costs are the third highest expense (after Cost of Goods & Salaries). In some locations, they may be the second highest expense.

Pharmacy often pays the highest rent in a centre!

Based on Medici Capital data the 2006 Australian Average Pharmacy Rent & Outgoings per square metre per annum was $522.54 (95% confidence interval ranges from $479 to $566) and the Average Rent % of Turnover 3.97% (95% confidence interval ranges from 3.61% to 4.33%).

Rent & Outgoings per square metre

The distribution of rents is highly skewed, with a few pharmacies paying well above the average rent and outgoings of $523. Any industry benchmark analysis is highly misleading, as the median (50% mark $406) is significantly lower than the average. Chart 1 illustrates the rent and outgoings per square metre. In simple terms, the vast majority of pharmacies pay less than the average, and the average is skewed by a number of pharmacists that pay extraordinarily high rates of occupancy costs - up to 6 times the average.

Any effort to bring pharmacy rents up to the average is misguided. Landlords should be examining industry median levels as well as averages to make a fairer assessment. Any alternative approach places enormous pressure on the viability of such businesses.


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Medici Events

Pharmacy Ownership Ready Conference

This event is a Conference event for Pharmacists

Women's Pharmacy Golf Day

This event is a Discussion event for Pharmacists

Pharmacy Study Tour

This event is a Conference event for Pharmacists

Pharmacy Connect

This event is a Conference event for Pharmacists, pharmacy managers & students

Pharmacy Snow Business

This event is a Conference event for Pharmacists