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Factors That Indicate It May Be Time To Sell Your Pharmacy

If you own (or have owned) your own business, you will know that the decision to sell the business can be an emotional one. As you make the decision to sell there will be a number of factors that you need to address - financial, economic, tax and personal. However sometimes making the decision to sell can be the hardest part of the process. These factors can often be used to identify when it is time to start the sale process and, if identified early, may allow you to commence the sale process while the business is still trending well!

1. Differentiation

Continuing to offer a point of difference to the market, or your competitors, is a great way to stand out from the crowd. It also becomes part of your "brand" and becomes a calling card for your business. To maintain a point of difference requires on-going assessment of your offer. If this starts to fall by the way-side, you begin to lose this point of difference and your differentiation from the market and may indicate the start of a slide in your market share.

2. Industry Connection

Maintaining connection with suppliers, wholesalers, IT vendors and advisers ensures that you are constantly in touch with the market dynamics and the latest tools & products to assist you in your business. However, with the vast number of stakeholders involved in pharmacy, it can often be alot of work maintaining relationships with all these groups! If you find yourself losing touch with the industry, chances are that you are falling behind in industry changes and it may be a sign that you need to consider selling your pharmacy.

3. Innovation

Pharmacy is not the only industry in which efficiencies and economies of scale are resulting in customers seeking more for less. With declining margins, rising rents and rising salaries, it is now more important than ever to ensure that you innovate in your pharmacy to find new income streams, adapt practices in the business for efficiency and leverage technology for better business outcomes. However, if this seems a daunting task - or if you simply don't have the time to make these changes, a sale may be a good outcome to realise the current performance of your business while offering potential to a purchaser.

4. Involvement

With the recent industry changes - namely Price Disclosure - it is now more important than ever to ensure that the pharmacy's dispensary operates efficiently. This may require the implementation of management and buying strategies to address the changes that have begun in April this year and will require involvement in the business at all levels. However your involvement, and implementing strategies, is likely to take considerable time, energy and potentially money. If you are not prepared to commit to this involvement, a sale while the business is still performing well may be a good outcome.

5. Other Opportunities

Finally, there simply may be better opportunities for you to explore outside of this business - another pharmacy; another business; the golf course; the yacht or the Caribbean! If you value spending your time in other pursuits, then the sale of your business may be a good chance to realise these other opportunities.

Regardless of the reason, it is your reason. There is no right or wrong answer. However, the key is ensuring that you are selling the business when it is still performing well. This ensures that you get the best price for your business and the buyer is obtaining a business with a good rack record. If you wait for too long and the business starts to decline, then the sale becomes a more difficult process and may reap the same rewards.

When selling your pharmacy, ensure that you seek advice throughout the process. You have spent considerable time and effort building up your business. The pharmacy may be your largest financial asset. It is important that you get the sale process right - a business broker will identify how to start the process and provide a plan to achieve a sale. A business broker will also provide a buffer between you and the market to help insulate you from the emotional side of the sale. To find our more benefits of using a Business Broker, read our recent blog post: Why Use A Broker.

If you have considered selling your pharmacy, contact Attain Business Brokers on 1300 ATTAIN (1300 288 246). We can help you discuss the current market conditions and the process of listing your pharmacy for sale.


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