Are you considering buying or selling a chemist? Whether you’re expanding your business or planning your next chapter, the process can feel daunting. At Bartletts Solicitors, we understand the complexities involved and are here to guide you every step of the way
Buying and selling pharmacies is a niche area of the law and more complicated than a standard business acquisition – which is why most people buying or selling a chemist will use specialist solicitors’ firms, like Bartletts Solicitors to help with the process.
What To Consider With A Pharmacy Purchase?
There are many technical issues to consider when buying or selling a chemist, including handling the transfer of ownership of an existing NHS contract, negotiations and the NHS (Pharmaceutical Service) Regulations 2013.
As a guide, you should consider a wide range of factors, including:
- NHS regulations
You will need to apply to NHS England as part of the process. - Paying a deposit
Often, a seller will request a deposit from a potential buyer to make sure they’re a serious buyer and also to enable an exclusivity agreement to be put in place, that means the seller won’t negotiate with other buyers during due diligence. - Due Diligence
The fact-finding part of the purchasing process is vital with pharmacist buying, as the buyer must understand every aspect of the business before the purchase goes ahead. Facts to check include employee contracts, supplier contracts, finances, insurance, intellectual property rights, and customer complaints. - Confidentiality Agreement
Normally, a buyer will have to sign a confidentiality agreement before the seller will disclose the information required for due diligence. - Data Protection
Extra care must be taken with pharmacies as they have access to sensitive information. Every chemist must be registered with the Information Commissioner’s Office (ICO), who is responsible for data protection in England. - Goodwill
The reputation and value of a pharmacy is tied up with goodwill, an intangible company asset that adds value to the business. It’s important to try to understand the worth of a company’s goodwill.
What Is The Process?
Buying and selling chemists is subject to far greater regulations and requirements than straightforward property or general business transactions. Depending on the complexities of the individual pharmacy being sold, the process takes approximately 6 months to complete.
It’s important to use a legal firm with experience of chemist purchases and sales, and that has an understanding of the specialist regulations of this industry.
How We Can Help You With Your Chemist Purchase
Our specialist solicitors have extensive experience of helping clients with the sale and purchase of pharmacies and are able to help with every aspect of the transaction.
With our help and guidance, you’ll have total peace of mind throughout the purchase or sale process that all the necessary due diligence, negotiations, and data protection requirements have been checked to enable a true business value and a fair, transparent transaction.
To speak to us about buying or selling a chemist business, please contact us on 01244 313301 or email advice@bartletts.co.uk
