Gone are the days when a pharmacy could be bought and sold on the strength of a handshake and a quick review of a few dispensary reports. With pharmacies now selling at significant multiples, it is essential that both vendors and purchasers have access to accurate, up-to-date, and comprehensive information throughout the transaction process.
For vendors, presenting your business in the clearest possible manner is critical. The information provided should leave little room for doubt regarding the accuracy of the figures or the overall performance of the pharmacy. When preparing an Information Memorandum (IM), we examine all aspects of the business in detail. While some of the reports requested can take time to compile, providing thorough information from the outset helps minimise questions later in the process and can significantly streamline negotiations.
Purchasers, in turn, are often seeking finance approval from their banking institutions. Banks will generally require the most recent monthly trading reports before approving funding, making the quality and timeliness of the data particularly important. To assist with this, we present the information in a logical, sequential format that is easy to read and allows interested parties to make informed decisions quickly.
A comprehensive IM will typically include three years of financial statements, current-year management reports, detailed script reports (including external sales and HCDs separated out), staffing information, lease details, business history, and other key operational data. Together, these elements provide a complete overview of the pharmacy and enable buyers to properly assess the opportunity.
If you would like to discuss the contents of our Information Memorandums in more detail, please do not hesitate to contact Peter or Mike.