A new year
January 6, 2014
With a new year comes
renewed enthusiasm and
confidence and it is my opinion
that this will be the case with
the sale of pharmacies in 2014.
This is not a big leap as sales
in the latter part of 2013 were
rising in line with the number of
buyers seeking opportunities.
I believe that the PBS changes
have now been fully factored
into buyers’ considerations,
and certainly into valuations
provided to financial
institutions.
There is no appetite for
unreasonably high priced
pharmacies but with a small
increase in competition there
is certainly more optimism that
sellers will achieve satisfactory
sales results.
The returns being achieved
have eased considerably since
the heady days of three years
ago and I do not expect that
we will return to these EBIT
multiples, but with time will
come increased confidence.
Hopefully the Christmas retail
sales results will all be very
positive and will go some way
in providing a general increase
in business confidence.
The majority of delinquent
businesses have been
eliminated, although there will
be several more in the coming
months but that said, welcome
to 2014 and a return to positive
thinking about the pharmacy
industry.
To discuss, contact peterm@
pharmacysolutions.com.au.
This week’s
contributor is
Peter Marshall,
ceo of Pharmacy
Solutions
Australia.
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