• Do a proper Stocktake

You need to know exactly how much stock you will have at settlement. The sale price stipulates a stock value, and you will only be paid for the stock on hand on the day of the stocktake. Some vendors have underestimated their stock by up to $50 000. This reduces the price you receive by $50 000. Count your stock before settlement and monitor it regularly through the sale process.

  • Do a proper assessment of your stock

Ensure all your stock is in a saleable state and will be four months from its expiry date at settlement. Sell all short-dated stock as well as damaged and superseded items, as these, will not be included in the stock take 

  • Shop Lease

Make sure your lease has at least five years to run. The purchaser’s bank will prefer a longer lease. If you own the premises, discuss the lease terms, options and increases with your solicitor early in the sale process. 

  • Leased equipment

Do not enter new leases, e.g. phone systems, solar panels, computer systems etc. You must pay them out at settlement, decreasing the money you get for the pharmacy. 

  • Debtors

Focus on getting your customer accounts up to date. Recovering this debt after the sale is time-consuming. Debt recovery should form part of the contract of sale. Speak to your solicitor. 

  • Bad Debt

Make a list of the bad debt and give it to a debt recovery agency. The customers are no longer yours after settlement; therefore, you can be more ruthless in your debt collection. 

  • Franchise agreements

Don’t sign a new franchise agreement. Ensure you understand your obligations under your franchise agreement concerning the sale of your business. In some franchise agreements, restrictive sale clauses exist. Consult with your solicitor. 

  • Bank security over loans

Ensure that any charges, loans or security the bank has over your business are removed well before settlement. 

  • Owing Scripts

Reduce the number of owing scripts to zero before stock take. 

  • Scripts awaiting collection

Reduce the number of scripts waiting for collection. 

  • Consumable ordering

Reduce the number of labels, bags, warning labels, bottles, Webster packs, toner and pill boxes in stock

  • Removal of personal items from the pharmacy

Before the sales process starts, remove all personal items from the pharmacy.

 

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