Buy Pharmacy In Australia: Key Factors To Consider

Buying a pharmacy in Australia is a major decision that requires careful consideration of several factors. Typically, you’ll find that pharmacy ownership in Australia is limited to registered pharmacists, and the regulations for owning a pharmacy varys from different states and territories. In this article, we’ll understand how to buy pharmacy in Australia. 

8 Factors to Consider to Buy Pharmacy in Australia

• Understand ownership regulations first.

In Australia, strict rules in the pharmacy industry are enforced to ensure public health and safety. Most states and territories restrict pharmacy ownership to registered pharmacists only. If you want to buy pharmacy in Australia, you have to register with the Pharmacy Board of Australia and comply with state-specific ownership laws. Some jurisdictions also allow for structured partnerships or companies under limited circumstances and help pharmacists maintain the majority of the ownership and control.

• Location and Market Analysis 

Before buying a pharmacy, you need to consider the demographics where you analyse the local population, age groups, and healthcare needs in the pharmacy's catchment area. Also, by doing market analysis, you have to assess the number of pharmacies, the services provided by them, and the potential impact on the business. Lastly, you need to assess the nearby pharmacies to consider the location’s proximity to public transport, medical centres, or residential areas.

• Financial Performance 

While evaluating financial performance, you need to consider sales figures, which include historical sales data, including volume and front-end sales. With profit margins, you can analyse gross and net profit margins so that you can understand the business’s profitability. Also, you can evaluate the pharmacy’s ability to generate consistent cash flow in the long run.

• Lease Agreement

You need to carefully review the lease duration, rent amount, renewal options, or cases where it could result in a rent increase. All these factors have to be considered for future use before you buy pharmacy. Also, you need to understand the landlord’s reputation and willingness to negotiate. 

• Staffing and Personnel 

For owning a pharmacy, you need to assess the experience and expertise of the pharmacy staff, which includes pharmacists and assistants. You need to identify all the important staff members and ensure that even after the sale they continue their employment. 

• Regulatory Compliance 

Before you buy pharmacy in Australia, you need to verify that it's registered with the Pharmacy Board of Australia and help you meet all the required regulations. You need to check where it adheres to the Therapeutic Goods Administration (TGA) guidelines on medication storage and dispensing. 

• Business Structure and Ownerships

Your needs and legal requirements matter before buying a pharmacy in Australia; hence, you need to decide on the most suitable business structure before buying a pharmacy. Also, it's best to familiarise yourself with state-specific pharmacy ownership laws and restrictions. 

• Due Diligence Process 

It's important to consider due diligence before buying a pharmacy, as with due diligence you can thoroughly evaluate a pharmacy’s financial records, legal compliance, operational costs, patient base, and other important factors to minimise any potential risk or liabilities so that you know that the business is financially viable and operates by keeping in mind regulatory guidelines before you decide to purchase a pharmacy.

Other Important Considerations:

Professional advice:
Before making a major decision to buy a pharmacy, seek guidance from a pharmacy broker, accountant, and lawyer, or hire a firm such as MSI Taylor, which has immense experience and expertise in pharmacy acquisitions. 

Market trends:
You need to stay updated on current trends in the pharmacy industry before deciding to buy one. Knowledge of market trends includes medications, services, and technology.

Funding options:
Thoroughly plan the funding options you will need to buy pharmacy.

Business plan:

Develop a comprehensive business plan that outlines the operational strategies and growth goals so that you can be clear on how you can proceed to buy and then operate it.

Conclusion

Buying a pharmacy in Australia is not a small decision and comes with a lot of state rules and regulations. This article is helpful for those who are looking to buy a pharmacy in Australia. This article also lists other important considerations that you should take into account before buying a pharmacy.