Partners · 03

Two advisers. Very different jobs.

Buyers routinely conflate these. Your accountant tells you whether the business is worth what you're paying and how to hold it. Your lawyer makes sure you actually get what you're paying for.

What they actually do

Two tracks, running in parallel.

Accountant

01Review the financials and normalise earnings

Adjust for owner salaries, related-party rent, one-off items and anything that won't continue after settlement. The normalised figure is what you're actually buying.

02Test the revenue mix and script data

Check the split between PBS-subsidised dispensing, private scripts, services and retail, and look at script trends and prescriber concentration over time rather than a single year.

03Advise on ownership and tax structure

Within the entities permitted to own a pharmacy in Victoria, structure affects tax, asset protection and your eventual exit. Changing it later is expensive.

04Model the post-settlement cash position

Debt service, stock replenishment, wages and the timing of PBS payments in the first months. Many buyers are profitable on paper and short of cash in week six.

05Set up reporting from day one

A simple monthly reporting pack, aligned to your lender's covenants, so you know where you stand before the bank does.

Lawyer

01Review and negotiate the contract of sale

Conditions precedent, warranties, deposit handling, adjustment mechanisms and what happens if approvals don't arrive in time.

02Review the lease, assignment and options

Term, options, rent review mechanism, permitted use, make-good and the landlord's consent to assignment. The lease frequently deserves more scrutiny than the contract.

03Conduct title, licence and encumbrance searches

Company, personal property security, and licence searches to confirm the assets are unencumbered and the seller can actually sell them.

04Handle regulatory approvals and registration

Victorian Pharmacy Authority premises approval and the separate PBS approval process, plus registration of the new ownership entity.

05Manage settlement and adjustments

Stocktake, apportionment of rent and outgoings, transfer of the trading entity's obligations, and simultaneous release of funds.

06Draft restraint and employee transfer terms

A restraint that is enforceable in scope and geography, and correct treatment of accrued employee entitlements on transfer.

Where they fit

When in the process you need them

Your accountant should be involved as soon as you shortlist, so you don't spend weeks on a business the numbers never supported. Both advisers carry the load through due diligence and settlement.

  1. Search

  2. Shortlist

    Matters most

  3. Offer

  4. Due diligence

    Matters most

  5. Settlement

    Matters most

Before you engage one

Questions worth asking first

01

How many pharmacy transactions have you handled, and how recently?

02

Will you review the lease as well as the contract of sale?

03

What isn't included in your quoted fee?

04

Who exactly will do the work — you, or a junior under supervision?

05

What's your turnaround on a contract review once you receive it?

06

What structure are you recommending and why, and what would it cost to change later?

Costs

How they’re charged

Fee structureUsually paid byWhat to watch
Fixed-fee transaction packageBuyerA quoted amount covering a defined scope. Get the scope in writing: lease review and regulatory approvals are often excluded from the headline figure.
Hourly ratesBuyerCharged by time in increments, usually with an estimate rather than a cap. Ask for a written estimate and to be told when it is about to be exceeded.
Separate lease review feeBuyerCommonly quoted apart from the contract review, and sometimes again for negotiating amendments with the landlord.
Searches and disbursementsBuyerThird-party costs for title, company and personal property security searches, passed through at cost.
Ongoing compliance retainerBuyerA monthly or annual amount for bookkeeping, BAS, payroll and year-end work after settlement. Price this before you complete, not after.

Structures vary. Confirm fees in writing before engaging.

FAQ

Common questions

Some groups offer both under one roof, but they are distinct disciplines with distinct professional obligations. What matters is that both roles are clearly scoped and that the person doing each has genuine pharmacy transaction experience.

Enquiry

Tell us where you’re up to

Indicative eligibility for due-diligence purposes only. Not legal or financial advice. Verify against the current Pharmacy Location Rules and the ACPA before acting.

Preliminary decision-support tool only. Results are based on available data, user inputs and automated measurements. They are not legal, surveying, financial or regulatory advice and do not determine whether ACPA, the Department of Health, Disability and Ageing or the Victorian Pharmacy Authority will approve an application. Verify all requirements against current legislation, official guidance and appropriately qualified advisers.