IAN MILLS GIVES HIS THOUGHT AND SOME SOUND ADVICE....
Industry evidence suggests we are seeing a slow change in the profile of pharmacy ownership, from multiple ownership to the independent sector.
Over the last 18 months the pharmacy market has seen more multiples rationalizing their portfolio and selling some of their shops and these are often being bought by independent small groups owners and first-time buyers.
Whilst some of these units may not be profitable in multiple ownership, this doesn't necessarily mean that these units are not likely to be successful in independent hands. History has shown that many of these businesses can be turned into profitable pharmacies and are a great opportunity as a first business or can be used as a springboard to build up a small group of pharmacies.
The pharmacy market is still very active, however selling agents often need to be sure of the prospective purchaser's ability to obtain the appropriate level of funding to acquire the business concerned before accepting an offer. It can be a daunting and time-consuming task, involving discussions with advisors and banks to obtain the funding needed.
At Medifinance we have the experience to look at a lending proposal from the eyes of the Healthcare lenders, whose credit appetite is often changing. Each bank may have differing criteria which need to be assessed from a financial and non-financial perspective. Medifinance are more than happy to talk through a prospective proposal at an early stage to ascertain whether the proposal is likely to be acceptable to lenders.
Providing that the proposal is realistic, we will tender to key lenders in the healthcare lending market to obtain the most suitable options to fit your individual requirements. This will involve a detailed analysis of the target business financials, preparation of projections and a business proposal to the lenders. We will present the case to the lenders to obtain competitive terms and conditions, following this up with assisting the process to drawdown.
We will be delighted to discuss your business purchase with you – our initial, no-obligation discussion is free, so why not call on;
About The Author
Ian Mills is a Medifinance Consultant, specialising in the Pharmacy sector
Ian was a senior manager who worked for a major pharmaceutical wholesaler for 24 years arranging guarantee scheme lending for pharmacies throughout the UK. Prior to this he worked in mainstream banking in the lending sector and also CeMAP qualified.
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