As we near the end of 2021, we look back at what has been an interesting and challenging year for some in the pharmacy industry. Pharmacy owners have been faced with a wide variety of challenges over the course of 2021 and we have seen a lot of change take place in the industry. Now more than ever, pharmacists are playing a more proactive and significant role in the provision of healthcare which is a very positive outcome.
One thing that is becoming more and more apparent is that the industry is slowly being subjected to consolidation. How this plays out in 2022 will certainly be interesting especially with the addition of Wesfarmers into the industry through their ownership of API. The big groups in the industry are getting bigger and are aggressively acquiring more stores within their portfolios. As a result, smaller players, including first time buyers, need to be savvy to compete with the bigger fish when it comes to purchasing a pharmacy.
So how do smaller players and young pharmacists compete? In order to have a shot at purchasing new pharmacies as they come to market, it is vital that pharmacists have pre-approved finance, combined with reputable advisors in the accounting and legal space. Not only is it important to have all your ducks in a row but ensuring that your support team are specialised in pharmacy and understand this complex industry is also crucial. In a sales scenario, there is no doubt the reputation of a buyer is taken into account and if they are relatively unknown then it will come down to the reputation of their advisors. We have assisted a number of smaller players and first-time buyers over the last few months secure sites, and it has been because they were proactive in having everything in place prior to purchasing that they were successful in being provided with the opportunity.
The fluctuating Pharmacy landscape is evolving, and no doubt will provide new opportunities and challenges for 2022. If you are looking to purchase a pharmacy in the new year and wish to have a confidential discussion about your situation, please contact me to discuss.
Lachlan Ballinger, Managing Director
Yield Advisory
info@yieldadvisory.com.au
https://yieldadvisory.com.au