If you’re selling a pharmacy, there are lots of things that you need to keep in mind, especially if you’ve never been in this position before. With this in mind, here are four key points that you should consider to help streamline the process and ensure that everything runs as smoothly as possible.
- Change Of Ownership Consent
The first point you need to consider is whether obtaining Change of Ownership Consent will be necessary. If you’re selling your pharmacy in a share sale, consent isn’t necessary as the buyer essentially takes your place.
If it’s going to be an asset sale, though, consent is necessary before the sale goes through. You, the buyer, and your accountant together are in the best positions to determine the format the sale will take when operational practicalities and tax considerations are taken into account
- Due Diligence
Prudent buyers will always demand that you have extensively shown due diligence in terms of prescription figures, GPhC registration, locum long-term contracts, employment contracts, practice insurance, waste contracts, and more, so you need to be well-prepared so you can answer all their questions on these subjects.
- Dealing With Your Buyer’s Standard Premises Enquiries
When you’re selling a pharmacy, there will be several elements covered in your buyer’s Standard Premises Enquiries. Firstly, you’ll have to obtain an asbestos report and EPC (Energy Performance Certificate) for your property since both are key components of those enquiries. Also, you have to supply confirmation that your premises has been approved for use as a pharmacy.
This can be evidenced both from your property’s title deeds and copies of the local council’s planning authority. Your premises must also be on the pharmaceutical list held by NHS England, and you’ll need to provide this evidence to your buyer.
- Freehold Or Leasehold Properties
If your pharmacy property is freehold and the bank has a mortgage on it, you need to carry out checks to ensure no restrictions are in place regarding its sale, such as a penalty or fee for early redemption, when you complete the sale and pay the loan off in full.
If you’re the property’s freeholder but wish to keep its ownership, you will have to ask your solicitor to draft you a new lease since your buyer’s lender is going to require a minimum lease term of ten years. If you’re a tenant with under 10 years remaining on the leasehold, you’ll have to negotiate with the freeholder to arrange an extension then assign it to the buyer.
Avoiding Costly Errors
Selling a pharmacy can be a complex process, so it’s essential to take professional advice to avoid any costly errors arising. Making mistakes when selling a pharmacy not only costs you valuable time, but also significant amounts of money.
Preparation is always key when it comes to selling a business, but if you remember to take the above points into account when arranging your sale, you can hopefully avoid any serious issues and enjoy a smooth and successful sale.