The most common question we are asked by existing pharmacy owners and prospective purchasers is “how are these cuts affecting pharmacy values?”. The short answer to this question is that values are not being affected………yet!
It is important to remember that the proposal to cut funding was announced in December 2015 so the market has had plenty of time to consider these cuts. Whilst the level of funding is clearly important when considering pharmacy values, this has been outweighed in recent years by the continued demand from purchasers as the supply of pharmacies for sale has been limited.
As long as demand stays high then we do not expect to see any significant effect on pharmacy values within the near future. Of course the situation might change if a large number of pharmacy owners decided to sell and the shortage of supply is reversed so we will continue to monitor prices with interest and provide further updates later in the year once the cuts have taken effect.
If you have been considering selling your pharmacy then you may wish to do so sooner than later whilst demand remains high and prices are being maintained. To discuss this further or simply to better understand the effect of the cuts on your business please contact us for a confidential discussion.