Once you have decided to sell your pharmacy with Rx pharmacy Brokers, we will require you to sign an exclusive sales agreement. This document outlines the price we think we can get for the pharmacy, the length of the agency agreement and the commission we will charge you for handling the sale process.
We will then undertake a full appraisal of the pharmacy and produce an Information Memorandum. (IM) The IM is used by the purchaser and the purchaser’s accountant to undertake the initial valuation of the business and forms the basis of their offer.
Before the IM is sent to a prospective purchaser a Confidentiality agreement. (CA) will need to be filled out, signed and returned by the purchaser. This prevents the purchaser from disclosing the contents of the IM to anyone except their professional advisors.
Once the purchaser is ready to make an offer, we will send them an Offer Document or Heads of Agreementwhich sets out the basic parameters of the sale such as, price, stock value, expected settlement date as well as certain other caveats such as, subject to finance, transfer of lease etc. If agreed, both parties sign the offer document and an initial deposit is paid by the purchaser. This is held in Rx Pharmacy Brokers trust account. At this point the vendor and the purchaser exchange the details of their Accountants and Solicitors who start to correspond.
The buyer has 21 days to perform both financial and legal due diligence on the pharmacy. The 21 days start from the date on which all requested due diligence documentation is received by the purchaser’s solicitor and accountant. This is often the most difficult time for the vendor as there is often much work to be done to produce the documentation. During financial due diligence, the purchaser would be expected to have received provisional approval for their finance.
After the 21 days, if the due diligence has been successfully completed, and the purchaser is happy to proceed with the purchase, the vendor then, at his cost, gets his solicitor to draw up a Contract of sale.
During the Contract of sale process, the solicitors on both sides enter a process of negotiation. Once the finer points have been agreed, a final draft is completed and signed by both the purchaser and then the vendor. A final deposit is paid and both deposits are held in our trust account. At this point the process becomes unconditional.
The vendor and the purchaser work together to transfer the lease into the purchaser’s name. This cost falls to the purchaser. The purchaser and the vendor also work collaboratively to get PBS and Pharmacy board approval for the purchaser.
In normal circumstances the sale of a pharmacy may take 16 to 20 weeks or possibly more. Public holidays, Easter and particularly Christmas may lengthen this process. Solicitors who are not familiar with the pharmacy sales process are usually slower.