The number of new buyers seeking to purchase their own pharmacy increased by 56.9% from March 2019/20 to March 2020/21 according to sales agents, Hutchings Consultants.
Despite the fact that the COVID-19 pandemic has brought increasing challenges to pharmacies, the pharmacy purchasing market has increased with demand currently outstripping supply. The larger pharmacy chains (Lloyds, and Boots, etc) selling considerable numbers of branches looks to be coming to an end. Furthermore, other pharmacy owners looking to sell in the last 12 months have more than likely put their plans on hold due to the pandemic, causing a significant decrease in the number of new pharmacies coming onto the market.
How has this affected the market price?
The current imbalance of supply and demand means those who do want to purchase a pharmacy will more than likely have to pay a premium price with several parties likely to be interested in acquiring that pharmacy. However, some pharmacy owners and investors are more than willing to pay a premium price if the pharmacy in question fits in well with their current portfolio – with many pharmacies performing better following the outbreak of pandemic.
What does the future look like?
Hutchings Consultants predict that pharmacy demand will increase to normal levels over the next 12 months as we hopefully look to return to normality and the economy begins to improve and settle back down as the country begins to recover from the effects of COVID-19.
How we can help?
At Hawsons our dedicated team of pharmacy accountants offer a specialist service to community pharmacists and locum pharmacists. We can assist you with accountancy and taxation needs, utilising our in-depth knowledge and experience in the sector.
We recognise that no two pharmacies are the same and have experience in dealing with pharmacies of varying sizes and ownerships structures.
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