When two or more people are coming together to buy a pharmacy, we have a bit more freedom of choice about what legal entity we choose. However, if a partner is being admitted into an existing pharmacy business, the incoming partner is restricted to the legal entity the current owner has. Meaning the incoming partner is either buying shares in the company, units in a unit trust, or is in partnership with the other owner. However, it is important that we carefully consider some critical issues.
Considering pharmacy partnership? With careful thought, bringing in a junior business partner is an exciting time for everyone. It is a great honour to be able to mentor and guide a pharmacist making their first entry into business ownership. The focus of course must be on business success and protecting the business.
The most common entry point for pharmacists into the world of pharmacy business ownership is via a partnership interest. It is an exciting time, but a very nervous time. One where you often have little knowledge about what you need to do, what’s involved, and what advice you need. Having the right team around at this point is vital.
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 arrangement 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.
