THIS week's contributor is Greg Aspeling, Owner, gaps.solutions - As mentioned in last week's article, the demand for buying a pharmacy business is indeed healthy. However, I am amazed by the lack of understanding of the process by many newbies. It's important to get your ducks in a row, so here are some tips.
MOST importantly, speak to a lender first. TIP: contact a finance broker specialising in Health Lending. NOT your mortgage broker. Dealing with a specialist broker lets you know what ALL lenders are offering, not just one. Be aware, as a first-time buyer, you'll need a healthy deposit. Probably around 30% of purchase price. They may consider property equity but speak with your broker.
Other costs you need to factor in - Legal: Anywhere from $5,000 right through to $20,000, depending on the complexity of the sale AND the firm you're dealing with. Accountant: again one that specialises in health who will check the figures (called Due Diligence) $3,000 - $5,000. Transfer stamp duty: Some states don't charge, others do. Rates can be quite hefty. Queensland for example, on a $1m purchase, is around $38,000. In NSW there is no charge.
Do your research! Get your ducks in a row!
The above article was sent to subscribers in Pharmacy Daily's issue from 12 Mar 18
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