PHARMACY OWNERSHIP OR PARTNERSHIP!

The pharmacy industry has been faced with a wide variety of challenges over the past few years, and as a result we are seeing a lot of change take place across the industry. Intense competition and limited supply of pharmacies means that the road to pharmacy ownership is now tougher than ever. So, the question that needs to be asked is – is pharmacy ownership dead? The simple answer is no. However, if you are considering pharmacy ownership or partnership you should consider all avenues to ownership in order to compete in this cutthroat purchase process.

One of the key trends we are currently seeing in the market is that the big pharmacy groups are dominating in the buying space. If you speak with any industry professional, you will learn that approximately 7/10 sales are going to the big groups – making it harder for first time owners to enter the market. This being the case, if you are looking at pharmacy ownership, you need to think long and hard about which pharmacy group you want to align with. Careful consideration must be given to the advantages and disadvantages of each group and how these will work in your favour.

At yield, we work hard to give young pharmacists the opportunity to buy and get the right results from the outset. Over the years, we have developed intimate relationships with each of the groups and understand the intricacies of each of them, allowing us to recommend which pharmacy group(s) are best suited for those looking for ownership.

Some of the key things to consider when looking for the right pharmacy group:

Reciprocal relationship – the emphasis placed on a mutually beneficial relationship is key. It’s advantageous to the group to have good young partners to have control over that asset and conversely the junior partner needs to feel like they are valued.
Return on investment – ensuring you understand the business model that each group runs is also crucial. Business models differ between groups – ensure the business model you select has a strong focus on brand and competitive strategy.
The process to becoming a partner – look for groups that provide a partner readiness program. Groups that provide these programs make it easier to progress and secure partnership opportunities. It also shows they are organised and running a solid group.

Trust and reputation – lastly, it’s important to do your own due diligence when selecting a group. Things to look for include trust levels and reputation within industry. Where possible, speaking with existing partners may help provide some good insights that may not be readily available in the market.

At the end of the day, no matter which pharmacy group you decide to partner with, you will still need to do your due diligence. The groups are seeking pharmacists who can come in and drive effective change to propel the business forward. Ensuring you’ve undertaken a thorough due diligence process will ensure you are purchasing the pharmacy at the right price and are set up for success from the get-go.

At yield, we work with pharmacists ready to purchase their first pharmacy and set their businesses up for success. We can:

Find the right group for your pharmacy, or work with you for individual purchase
Work with financiers to assess your borrowing and investment limits
Undertake pre-purchase investigations
Set up the right business structures from day one
Implement financial systems that streamline operations

If you are considering pharmacy ownership or a partnership, ensure you get in contact with our team for a confidential discussion on how we can get you moving on your pharmacy journey.