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Does a Pharmacy Price Include Stock?

Many buyers will query whether or not the asking price for a pharmacy includes stock. In all pharmacy sales through Attain Business Brokers, the asking price of the pharmacy will include stock unless specifically stated otherwise. However, there are reasons why stock would/would-not be included in the sale price. Before looking to buy a pharmacy, make sure you understand how stock is associated with the sale.

For many business sales, the business is sold for a price plus stock on hand. In fact, many advisers are versed in this process and the Law Institute Contract of Sale templates often refer to the sale price in this way. As such, many solicitors look to draft agreements in this form.

Pharmacy, however has always been valued/assessed under a model that includes stock. The Capitalisation of Future Maintainable Earnings is the approach used to value pharmacy businesses. And this model provides an all-encompassing value - including stock. Therefore, the price of the pharmacy more often than not includes stock.

 

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