News
What is a Right of Entry document & why can it cause problems in the sale of a retail Pharmacy business?
Most Retail Pharmacies in Australia have the right to occupy and operate from the leased premises pursuant to a Lease document. When a purchaser enters into a contract to purchase a retail pharmacy business they are required to either accept an assignment of an existing lease or negotiate and sign a new Lease with the Landlord.
Beware the sting in the recovery
For many retailers, 2009 was a difficult year, with deep discounting and sluggish or patchy sales. Yet pharmacists performed better than most, enjoying better growth than just about everyone else, with the exception of takeaway food shops and liquor stores. Better still, conditions look set to improve in 2010, although the recovery could hold a few hidden surprises for the unwary.
Methasoft - Treatment Management System
The Methasoft™ solution is a complete suite of software and hardware designed to provide pharmacists with a safe, quick and efficient turnkey dispensing package.
Were you on the “Net” this Christmas?
How was your Christmas 2009 trade? For many clients I have spoken to it has been flat and some are down about 5% to 10% on same month last year. The main reasons of course are the recent consecutive interest rate rises and no Federal Government funding this year for the general public compared to last December. Nevertheless the greater public are still spending.
Business Ownership Succession Strategies
Whenever speaking to a pharmacist who is either already in, or about to join, a pharmacy partnership, I always ask whether they have thought about their business succession strategy. For the reader who is in a pharmacy partnership, a key question to consider is “what is going to happen if you die at your dispensary”.
How Important is My Lease to the Sale of My Pharmacy?
Nearly all Pharmacy businesses operate under a Lease and throughout Australia those Leases are predominately if not always Retail Shop Leases which are governed by various State based legislative Retail Shop Lease Acts.
Investment options outside the Pharmacy
Pharmacists looking to achieve investment goals sooner during the new financial year should take advantage of opportunities for Self Managed Super Fund (SMSF) investment outside the Pharmacy. Accelerating your wealth sooner by making the most of changes to Australia’s superannuation laws is a good first step.
Structuring - still worth it?
With the top marginal rate of individual tax starting at $180,000 of income you have to ask whether structuring your pharmacy into a company or trust (depending on which State the pharmacy operates in) it still worth it?
Methasoft Methadone Dispensing System
Health administrations nationally are increasingly seeking to integrate recovering addiction patients back into the community. Retail Pharmacy can and does play an important role in addiction care programs that provide treatment and support in achieving better outcomes for individuals involved in opiate substitution therapy.
Pharmacy Location Rule Changes
The Minister for Health and Ageing has amended the National Health (Australian Community Pharmacy Authority Rules) Determination (“The Rules”). The Determination was made in February and came into effect on the 17th March 2009 and applies to all applications made to the Australian Community Pharmacy Authority (“ACPA”) on or after that date.
Keeping your pharmacy financially healthy
It is always difficult in times of uncertainty, with volumes of negative news and headlines, not to question how things impact your business. However, as a Pharmacy owner you’re not alone, particularly when it comes to keeping your pharmacy financially healthy.
Budget for it
Ever set off to travel somewhere and did not know where you were going? Have an idea of where you are heading but no clue on how to get there – unless you look at the map.
Survive and Thrive in Turbulent Times
2009 has started with disturbing news of higher unemployment, brought on by the turbulence in the financial markets and downturns in sectors like tourism, construction, and the motor trade.
2009 - What does the year hold for pharmacy?
The unprecedented collapse of world financial markets along with the destruction of a lot of personal wealth certainly took the wind out of the sails of many in 2008! Continual stories of pending doom and gloom paint a less than positive picture for 2009.
Tax Effective Wills
A will is only part of Estate Planning. One wants to organise their affairs in a way to minimise cost, tax and stamp duties so as to maximise the Estate. As assets may be held in various entities, one must consider what will happen to these assets and entities when one dies.
Restraints Of Trade In Pharmacy Sales
As with most business sales, the giving of restraints of trade by a vendor pharmacist is an important aspect of transferring the business goodwill to the purchaser. However, many would be surprised to know that a restraint of trade is on its face, contrary to public policy and as a result is legally unenforceable, unless it is established that the restraint is reasonable in the parties' interests and also in the public interest.
Banner Group Member Agreements - Be Wary
It is now a standard occurrence when joining a large banner group that pharmacists are being asked to sign formal 'member agreements' which are not only lengthy and complex documents, but are legally binding upon the pharmacist.
Legal Due Diligence In Pharmacy Transactions
It is common to see in almost all contracts for pharmacy business sales a clause making the sale conditional upon a satisfactory financial due diligence exercise being carried out by the purchaser's accountant. As a consequence, prospective pharmacist vendors focus on ensuring that the appropriate accountancy work is organised in readiness for the purchaser's financial due diligence inquiries.
Did you hear the one about the buyer that walks into the pharmacy and makes an offer?
If a buyer enters your pharmacy and asks whether you are interested in selling, what then?
Representations and Warranties
With almost all sales of businesses, a vendor will endeavour to present the business in the most positive manner and as a consequence, will make certain representations in order to encourage a purchaser's interest.
