Pharmacy valuation

[Tony Schofield]

open next to it. Don't buy it.......................

[shan]

All cases decided on merit. Agreed, but in your experience have you seen one?? I mean is it possible or not?? For interest rates you need to talk to a bank manager [ Not a suggestion from you !! As a senior person in the business an advice from experience would have been better, as you always do]. A wholesaler may guarantee your loan in exchange for a promise to spend say 80% of your purchases with them.[Yup. but is it the only way out ??]

The investment required will depend on many factors. Will you have to buy a freehold, will there be a premium for a lease? How big is the premises and what will be the cost to fit it out. Purchase/lease of IT. Stock? [Market information. But, if you were to suggest a place, say, in a health centre in london, what would you think ?? or what does your experience/ time spent these years in pharmacy business say??] Think around £10 per Rx item. It could be a lot less or a lot more and you will have no idea until you start trading [well documented in NHSBSA] as prescribing patterns (28, 56 day Rx, generic v branded product etc) [Can always be changed]will be impossible to gauge until you actually open [how do you factor??]. OTC opportunity. The sky is the limit really. If you do 4000 items in your first month it will be a miracle but you never know! [well you never know, but if you have identified there is then???]

In reality it is possible ???

Shan

P.S: as a long standing member I thought the best way is to, share or build or develop ideas that can help people to get in a mode of doing their research and acheive things that may look very distant .... but possible.

[Tony Schofield]

Of course it is possible. How do you think I started?

[shan]

Of course it is possible. How do you think I started?

Well that's why we need more of your inputs as to how you started the process and what changes do you see at the current moment.

Shan

[Tony Schofield]

With all due respect Shan, every case needs to be evaluated individually. I have no idea what interest rate you will be charged as I know nothing about you credit wise. Interest rates have never been lower...ever!! When I started they were 15%. Banks have lending criteria and have not been as forthcoming as a few years ago and the only way to find out is to ask a bank on a proposal. If I generalise I overlook all manner of factors and won't be doing any favours to you. Why don't you "pm" me and we can discuss what you want to do off line?

[Pharmaton]

I am looking to buy a pharmacy (again) and am amazed at some of the valuations. I have been offered a number of pharmacies that are, at best, breaking even and they want 200K+ for goodwill. I was also offered a 100hr pharmacy for 200K that was making a big loss. There doesn't seem to be many for sale at the moment, so I suppose its supply & demand keeping valuations so high. Wish I'd never sold in 2002 now!! Retiring at 41 was not the utopia I was expecting.