Selling your pharmacy, which is often your largest asset and also perhaps even your retirement purse, is a very large decision. When is the time right for such a move?
There are many considerations that go into the decision to divest interest in a pharmacy. One of the key ingredients is the prevailing market conditions and trying to ascertain the highs and lows.
It is almost certain that pharmacy sale prices reached the highest point a few years ago and I believe that we will never see a sustained period of high prices like that again. So waiting around for prices to rise may be a very lengthy and potentially expensive exercise.
As there is solid evidence to suggest that market conditions (sale prices) will not improve in the short to medium term, the decision to sell should be based on personal situations rather than hanging on to an asset in the hope that its value increases against market expectations.
Good pharmacies are still attracting good prices (within market parameters), so when you are thinking that selling is best for you, make sure that you have taken care of the tangibles like lease tenure.
by Peter Marshall, Managing Director Pharmacy Solutions Australia