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Proving Your Capacity To Purchase

When buying a pharmacy, the general principle is that you are required to contribute at least 30% of the sale price in equity PLUS transaction costs associated with the sale. With the average price of a pharmacy at $2.5 million, the required equity is a substantial amount. As a buyer (especially when first dealing with a broker) it is important that you provide some clarity around how you expect to fund the transaction.

At the end of the day it's business, not personal. And your ability to fund a transaction will go a long way to providing clarity around both your capacity to purchase the pharmacy and your understanding of the opportunity.

You have to remember that when buying a pharmacy, it is more than an inspection of a premises - you're taking a look at the finances of the vendor. As such, and in order to retain some level of confidentiality, it is important that a broker ensures that you have capacity to buy the business before proceeding with the opportunity.

So be upfront and honest about your capacity from the outset. Explain to the broker what you are looking for and what experience you have. A good broker will use this to assist you in finding an opportunity that matches your requirements and (if you have the capacity) will add clarity to your enquiry on the current opportunity. However it is important that you do address your capacity to purchase with the broker.

For more information about buying a pharmacy, or to discuss current funding arrangements for pharmacy acquisitions, please contact Attain on 1300 ATTAIN (1300 288 246).

 

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