Managing the financial arrangements for partners in a partnership is mostly a straight-forward process. But often made complicated and messy by not paying attention to the financial arrangements between partners and the associated implications. If these are kept untidy they can potentially lead to disagreements later on, particularly when partners are exiting the business.
What we have also noticed with the industry in general is that in 2022, newly established owners, young pharmacists and first-time buyers are competing with larger “corporate” pharmacy groups. In a time when the values are significant and as is typical of our industry, there are always more buyers than there are supply of pharmacies.
As an advisor I need to understand your strategic plan - why you are in business and your long term goals to ensure you have a structure that gives you the best opportunity for asset protection, risk limitation or for tax purposes – noting here that we have put tax last as whilst an important consideration, it shouldn’t be the primary reason a particular pharmacy structure or transaction is entered into.
You can have the best advisors (accountants, lawyers, financiers etc) within your A team and they will be extremely supportive. However, more times than not, it is your support network (significant other and family) that will be there in the good times but also the dark times. Don’t forget they are usually the reason you are considering this journey and they should be involved in this journey of pharmacy partnership at every stage.
