What legal issues come into play when a pharmacist purchases a pharmacy with the financial backing of another who is not a pharmacist? What sort of business structure would be appropriate to avoid any legal "ownership" issues arising from such a situation? Thanks

This requires legal advice.

A non-pharmacist cannot have a pecuniary interest in a pharmacy. However, they may provide 'financial backing' in the same way a bank can provide financial support.

Call Medici Capital to discuss.

Medici Capital: pharmacy specialists in finance, management consulting and valuations.…read more

What percentage of the purchase price for a pharmacy has to come from personal funds?

This is a good question and one that often comes from young pharmacists looking to buy into their first pharmacy. It is also an important question given our current economic environment and the greater costs associated with funding business acquisitions.

It is a common misconception in the market place that you can acquire a business without providing any equity. This is not true.

As a general rule, if you're looking at buying a pharmacy on your own, a lending institut…read more

What do I do if the asking price for a business for sale is too high?

The question of whether the asking price is too high depends on what the business is worth to you?

That is not to suggest that you should pay the vendor a premium for what you intend to do. However, if the asking price is less than what the business is worth to you, the deal is worthwhile - you are ahead.

The key steps in this situation should include:

consider asking for terms on the sale: would the vendor accept a higher price with some funding from them or time…read more

Should I set-up a new pharmacy? Is it cheaper?

On face value it would appear cheaper. However, you need to factor in the years it would take to get the business to a profitable level and any investment (or losses accumulated) until it becomes profitable.

An existing business has a known sales level and is more likely to be profitable. Day 1, you make money.

Setting up a new business can take 3 to 4 years before it reaches break-even. Is it worth paying a premium for security of income?…read more

I am cosidering establishing a NON PBS pharmacy in a tropical resort setting. What are some of the important questions I should be asking myself and others regarding this project ?

While these might be practical in isolated or tourist settings, they limit the viability of the business. You should develop a business plan to assess the viability of the site.

The key questions are:

Traffic drivers Any speciality practice (Non-PBS) Competition and other pharmacies in the area Occupancy costs Staffing requirements

You should also consider, whether a site specific PBS approval could be sought.…read more