Pharmacy update: A roadmap to selling your business

Published: Thursday 29 February 2024

Is this the year you decide to sell your business, tempted by new and exciting opportunities on the horizon – whether that is reinvesting in another business, taking a well-deserved break or even retiring? Take a look at our roadmap below to understand the full process and what is involved.

Preparation

1. Appoint professional help

Involving both accountants and legal advisers early will help to get your business in great shape and maximise value.

2. Prepare for sale

Get your financials in order, remove non-essential costs to maximise the EBITDA of the pharmacy, review your management structure and prepare forecasts to demonstrate any growth potential

3. Get a professional valuation

This is an art not a science. It is important to look at elements which may add value such as low competition, proximity to the surgery and new housing estates.

4. Create sales literature

An attractive Information Memorandum will act like a sales brochure, giving you the chance to present your business in the best possible light to potential buyers.

 
Take to market

5. Find a buyer

If you do not already have a purchaser (e.g., your existing management team), your advisers can research the market for good candidates.

6. Negotiate with the buyer

Your advisers will work to get the best deal on your behalf. Some purchasers may want to defer consideration to allow them to pay in stages or link the sale price to the performance of the business via an earn out. Make sure you are aware of all the options and their implications.

 
Complete the deal

7. Complete due dilligence

The purchaser will need to scrutinise your business before fi nalising the transaction and your professional advisers will manage this process. This can take time, and being open and upfront from the outset is key to maintaining trust.

8. Tax structuring

By constructing the deal in a tax-effi cient manner, you can minimise tax and maximise profi t.

9. Completion

Congratulations, your advisers will now push the deal over the line, and you can focus on your future.

 
Post deal

10. Wealth management

Whatever your future objectives are post deal, the Hazlewoods Financial Planning team can support you in putting together a tailored plan to help you meet them, ensuring you are using the proceeds in the most effective way.

 

If you are considering buying a business, selling your company or are looking for ways to fi nance your growth plans and would like to fi nd out more about the process, our expert-led Pharmacy team can help. With specialist sector expertise spanning across our innovative team, as well as the wider market, you will receive tailored insights and guidance to suit your industry requirements.

Content image: /uploads/team/unknown.jpg Richard Pontin-Medes
Richard Pontin-Medes
Partner, Pharmacy
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