I recently came across a situation where an accounting firm facilitated the sale of a pharmacy from one of its clients to another. The firm charged a commission for the sale – not to the seller, but to the purchaser. The purchaser was informed of this commission partway through the process, rather than at the outset. I’m also uncertain whether the seller knew their accountant was receiving a commission from the buyer.
This raises some serious questions about transparency, conflicts of interest and, ultimately, whose interests are really being protected.
When it comes to selling a business, it is essential that the person facilitating the transaction is upfront about who they are acting for, how they are being paid and whether any conflicts of interest exist. These matters need to be clearly disclosed and addressed with the parties involved.
Consider the potential conflict when an accountant sells a pharmacy owned by one client to another client of the same firm. Whose interests come first? Is the accountant acting in the best interests of the seller (who may no longer be in need of the accountant’s services after the sale) or the purchaser (who has the ongoing accounting relationship)?
There is also the question of due diligence. What happens if the same accountant is doing the Due Diligence process and uncovers an issue with the pharmacy’s financial records that relates to work they have previously undertaken themselves? This creates an uncomfortable situation that could compromise the independence and objectivity needed to complete a transaction properly.
Selling a pharmacy is a significant business decision. It deserves an independent, professional approach.
Your accountant may know your business and its financials inside out, but that does not necessarily make them the right person to sell it. Their knowledge of the market may be limited to their own client base, potentially narrowing the pool of buyers and the opportunity to achieve the best possible outcome.
The best buyer for your pharmacy is not necessarily someone your accountant already knows. A properly managed sale should expose the business to the right market, attract genuine competition and ensure that all parties understand the process and their respective obligations.
At Pharmacy Solutions Australia, we believe in keeping professional roles separate. We focus on selling pharmacies, leaving the accounting to the accountants, the legal work to the solicitors and finance to specialist finance brokers.
Why? Because maintaining independence across these areas helps us remain focused on what matters most to our client: achieving the best possible price for our client, protecting their interests and ensuring the transaction runs as smoothly as possible.
When it comes to selling your pharmacy, choose your sales representative carefully. Make sure you understand who they are acting for, how they are being paid and whether any conflicts of interest exist.
Your business is too valuable to have self-serving “professionals” involved in its sale.
Peter Marshall
Managing Director, Pharmacy Solutions Australia
0417 721 203
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