How much capital to buy a shop?

[Defblade]

Here's a question I thought I'd never be asking:

How much capital would I need for buying a low-to-average NHS, low OTC shop - with possibilities for a new broom to improve both? In Wales, so no 100 hour, which would keep the goodwill a bit higher I guess. Assume that I can do the regular finance sort of deal with AAH/Pheonix etc (whatever that may be).



Getting slightly fed up with working for other people's benefit and my wife and I do have soem money behind us now; she reckons it's time I looked in to this properly!

[johnep]

One of the ways used to be to gradually take over a pharmacy enabling the owner to take things easy and then retire. The new proprietor would gradually purchase the rest of the business by paying a 'pension' to the owner. The method was known as succession.

[Defblade]

Well, there's a small chance that could work in the case I'm thinking of now; but to the honest I'd rather they were right out of the way as they'll not like my new broom... there'd be some MAJOR changes that I've already put forward but haven't got anywhere. We had a near-retired locum the other day, and even he said the place was stuck in the '80s or '90s

So, is there a possible answer to my original question, or is it "depends"? Just looking for a ball park minimum... £10k, £25k, £50k, £100k??

[johnep]

Keep on going!. Discussions with a bank manager initially are advised. If they will not play, then google finance for pharmacists. Quite a few private investors about.
johnep

[bobbin]

Assume that I can do the regular finance sort of deal with AAH/Phoenix etc (whatever that may be).

AAH's finance division for independent pharmacies has its own website with lots of info....

Statim Finance - Home Page

[mrmeds]

normally need to put in 20% of purchase price. Speak to your local cambrian Alliance business rep ( an independent buying group ) they've got what looks like a good offer on at the moment.

[BrianA]

You need to have a proper valuation of the business to know how much it is really worth before you think about capital. Value based on items, turnover, income, profit, threats costs, overheads and risks to the business, amount of effort by current owner compared to what you can do. A pharmacy that is performing poorly and could do so mch better if managed correctly has greater potential than one performing well already

[bertram]

Usually need 20% capital,but the best way to do it is to buy into a small,decent one at 50% share and work your way up .There is still a good living to be made as an independant.Watch out for ads in the pj as good pharmacies are usually not via agents.good luck

[DavidS]

Don't forget that some of the wholesaler finance deals/guarantees are with wholesalers who have their own retail businesses.

So don't release the details of the business until an advanced stage of negotiation.

[Defblade]

Update:

How about starting a shop?

My wife's had her own shop before (not pharmacy) so I've got some idea of the regular business start-up costs, leases etc.

I'm in Wales BTW, so no 100 hours. I would have to get a proper contract.

I think I may have identified an area near me with lots of small developments meaning there's been a gradual increase in population... and there's an empty shop unit. Lots of passing traffic, and a free car park just around the corner. No surgeries immediately near by though, and the 2 nearest do have pharmacies next door already. One of those surgeries (the slightly nearer one) may be closing and merging with the other.

Alternatively, I'm sort of friendly with the guy running the local post office.... it's got less passing traffic but obviously a regular run of pensioner customers already. He does have a spare corner....