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Showing 1 to 5 of 7 articles related to "returns".

Pharmacy Returns - are pharmacy returns reasonable

PBS Reforms combined with the impact of the recent credit crunch have driven many pharmacists to ask the question - should the prices being paid for pharmacies come down? In the context of the current economic climate, many expect that returns should increase to reflect the increasing uncertainty and/or risks about pharmacy. But is this the case?

Pharmacy returns

Pharmacy business sales brokers generally refer to the capitalisation rate as the return on investment. But is it?

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Is Anyone Listening? Be Alert When Purchasing A Pharmacy

Don't pay the seller for what you bring to the table!

Emotion and fear are often the twin drivers for the purchase of a pharmacy. This is particularly so where a competitor is thought to looking at the same opportunity.

Brokers are very skilled at creating the 'pressure pot' for sales and a quick decision. They drive the emotional factor! They will often encourage the purchaser, to never mind the reported results and think about what "you could do with this business" and, as a result, have the purchaser pay a premium to the seller for value yet to be created by the purchaser.

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Succession Planning: an important strategy for wealth creation and the long term survival of independent community pharmacy

Succession planning refers to the process of progressively transferring ownership and control to another generation of owners. In essence, it aims to promote a win-win situation for vendor, entrant and industry as a whole. Long used by other professions, correctly managed, and with the right parties, it leads to improved values for the retiring owner and reduced risks for the incoming partner.

Synopsis:
Many pharmacy owners, as a practical alternative to business sale, are adopting succession planning which involves the progressive transfer of ownership. Long used by other professions, correctly managed, and with the right parties, it leads to improved values for the retiring owner and reduced risks for the incoming partner. Ultimately it's a process not an event and requires careful execution of a number of steps. It also must be tailored to the objectives of each partner; new and old. Once completed, often the process starts again with another generation.
Current pharmacy landscape
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Myth Busters: Change in the Location Rules and Pharmacy Values

Following the change in the Pharmacy Location Rules many pharmacists have been concerned that these changes will have a detrimental impact on the value of pharmacies. These concerns have been fuelled by industry rumours also hinting of drops in pharmacy values. However in the majority of cases, I fail to see the correlation between Pharmacy Approval Number values and the value of a pharmacy as a going concern.

As a valuation specialist we are receiving calls from pharmacists inquiring about the changes and impact on valuations. First and foremost, we believe the valuation of going concern pharmacies is not expected to change.

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Is Anyone Listening? Be Alert When Purchasing A Pharamacy

Despite the numerous threats and pressures facing pharmacy, Goodwill is and remains at an all time high. By any measure the cost of pharmacy ownership is high and the payback period greater than in recent history. So too are the associated risks of pharmacy ownership.

However, the returns for wisely selected pharmacies can be excellent and the rewards, both personal and financial, can be exceptional!

Recent sales evidence suggests a number of warning bells which I wish to alert you to.

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