Partners · 01
The broker knows the deal. You should know the market.
A broker is usually the first person you'll speak to about a pharmacy that's for sale — and often the only person who knows it's for sale at all. Understanding what they do, who pays them and where their obligations sit will make you a far better buyer.
What they actually do
Five things a broker is actually doing.
Brokers build relationships with owners long before a sale is announced. Much of the market never reaches a public listing, so the broker's own pipeline is often the only visible supply. That is useful to you, but it also means the flow of opportunities you see is shaped by their relationships, not by the market as a whole.
An appraisal blends earnings, script volumes, revenue mix, lease terms and location. It is an opinion of price prepared for the vendor, not an independent valuation. Ask for the basis behind the number and test it against your own analysis and your accountant's review of the financials.
Staff, prescribers and competitors usually aren't told a pharmacy is for sale. Brokers gate the information: a confidentiality agreement first, then a memorandum, then the detailed data. Expect to demonstrate that you're a registered pharmacist or otherwise eligible to own, and that your finance is realistic.
The broker carries offers between the parties, tests price and conditions, and coordinates the contract of sale with the lawyers on both sides. They keep the transaction moving, but they don't act for you unless you've engaged them separately as a buyer's advocate.
Registering your criteria puts you on a list that gets called before a listing goes public. It costs nothing and is the single most useful thing a first-time buyer can do — provided you also keep your own independent view of where the opportunities are.
Where they fit
When in the process you need them
A broker is most useful when you're finding opportunities and when price and conditions are being negotiated. Between those points, your accountant, lawyer and lender carry the work.
Search
Matters most
Shortlist
Offer
Matters most
Due diligence
Settlement
Before you engage one
Questions worth asking first
01
Who are you acting for in this transaction, and who pays you?
02
Do you hold a licence to deal in businesses in Victoria, and under what entity?
03
How many pharmacy transactions have you settled in the last 24 months?
04
Is this listing exclusive to you, or is it also being marketed elsewhere?
05
How was the asking price arrived at, and can I see the basis for it?
06
What information will be released before I sign a confidentiality agreement?
Costs
How they’re charged
| Fee structure | Usually paid by | What to watch |
|---|---|---|
| Commission on sale price | Vendor | Typically charged as a percentage of the sale price and paid at settlement. Because the vendor pays, the broker's duty sits with the vendor unless you have engaged them yourself. |
| Engagement or listing fee | Vendor | An upfront amount charged when the business is listed, sometimes credited against commission on settlement. |
| Marketing fee | Vendor | Charged separately for advertising and preparation of the information memorandum. |
| Buyer's advocate retainer or success fee | Buyer | Where you engage an agent to act for you. This creates a duty to you, and should be documented before any property or business is inspected. |
Structures vary. Confirm fees in writing before engaging.
FAQ
Common questions
Almost always no. In a standard listing the broker is engaged and paid by the vendor, and their duty runs to the vendor. They must still deal with you honestly and not mislead you, but they are not your adviser. If you want someone on your side of the table, engage a buyer's advocate under a separate written agreement.
Enquiry