Buying a pharmacy | Legal processes
05 December 2019
When buying a pharmacy, especially if it is your first, it is not unusual for the prospective purchaser to feel a little daunted by the legal process and all the documentation involved.
However, with the right choice of lawyer the process can be made a little easier and more understandable.
The first, crucial step
Themost important decision is to appoint a specialist lawyer who has experience of pharmacy transactions.
Using a mate you went to Uni with, a family friend or the solicitor you used to buy your house is definitely not recommended! Surgeons and GP’s are all qualified doctors but would you want a GP to undertake brain surgery? It’s the same with qualified lawyers, they all have their specialities whether that be family law, commercial law or the even more niche legal area of pharmacy transactions.
All business sales agents can recommend a panel of experienced lawyers for you to choose from and although their fees may seem high, the time they take to undertake the transaction and their advice will actually save you lots of money.
Understand the what type of sale it is
In a previous article we have talked about an Asset Purchase Agreement (APA) and Share Purchase Agreement (SPA) and it is important to understand which process you are using to purchase the pharmacy.
HOTs – What has been agreed?
When your offer is accepted by the vendor, the Pharmacy Sales Agent will draw up a Heads of Terms (HOTs) document outlining exactly what has been agreed to sell the pharmacy from the vendor to the purchaser and this document also outlines the expected timetable.
The HOT’s form the basis for the respective lawyers to draw up the APA or SPA.
Guarantees and warranties
There will be a number of discussions between the lawyers and their clients as to what guarantees, or warranties are required by both vendor and purchaser and this rather detailed legal framework within the APA or SPA is very important for you to understand.
Property and finance
In addition to the APA or SPA which forms the purchase document, there will also be ancillary legal documentation around the property the pharmacy is located in, (lease or freehold) (link the words ‘lease and freehold’ to https://pharmacyseekers.com/insight/overcoming-pharmacy-property-issues/)dealing with landlords and of course the legal documents required by the purchasers bank/ lender for any loan required to fund the purchase.
A step by step approach guided by an expert lawyer will make the whole process a little bit less stressful and enable you to achieve your ambition of owning your first pharmacy. As the industry experts and with a wealth of experience across the team, Pharmacy Seekers can put you in touch with a number of pharmacy specialist lawyers who have the knowledge and experience you need.
Pharmacy Seekers – Experienced pharmacy professionals to support your pharmacy purchase
To help you succeed at each step of the road map our team at Pharmacy Seekers have unparalleled experience over decades, working in operational, financial, developmental and leadership roles within the pharmacy profession.
• We provide a supported purchasing process
• We provide end to end support – from decision to purchase to completion
• You will receive director level contact and assistance throughout
• We are the pharmacy specialists and don’t get distracted with work in other sectors
• We can help you prepare your business plan and financial application for funding
• We have an extensive associate network to assist with developing your pharmacy