Due to increasing business size and value, and the need for succession planning, owners with viable businesses are seeking junior partners to join them. Likewise up and coming pharmacists wish to own larger businesses. Such sales of equity will necessitate the development of industry-accepted principles and finance approaches to succession.
Practices have used multi-practitioner professional partnerships to attract appropriate staff and reward specialised skills. Pharmacists, like other professionals, are seeing the evolution in the admission of junior partners. Also, with almost 60% of existing practitioners ready to retire in the next 10 years, partnerships will become a practical way for the profession to retain their skills."Where do I find a partner?" www.practice4sale.com.au offers pharmacists the opportunity to seek and advertise partnerships both through the listing of "equity for sale" and the "jobs" sections. In a bid to ensure that those using the service are genuine, access is restricted to registered practitioners and they can subscribe online. Practice4sale caters for those seriously interested in purchasing practices and partnerships. The information is available Australia wide, 24 hours a day, 7 days a week.
Valuations for succession purposes require a different approach. While the valuation method might be similar, there are a number of specific questions. These include:
- Asset structure and maturity
- Consultant pharmacists' roles and contracts
- Guarantees granted by partnership to financiers and other partners
- Family law matters
- Contracts held by the practice (ie. nursing homes, special accomodation)
- Retirement trends and plans
- The age and influence of existing partners
Advertisement: