The pharmacy sales market in 2024 – and what new owners should know

Ahead of the Pharmacy Show, the team sat down with Thorrun Govind, Pharmacist and healthcare lawyer, to touch base on what’s been going on in the pharmacy sales market and get a sneak preview of what advice she will be sharing at the Pharmacy Show. 

At the beginning of this year, it was reported that 2024 was set to be a busy year for the pharmacy sales market – with 46% of pharmacy professionals looking to acquire a pharmacy this year, 22% of contractors looking to sell, and 17% looking to both buy and sell. What do you think this means for the community pharmacy landscape?  

Large multiples like Boots, Well, and Avicenna have continued to sell numerous branches this year. Consequently, the pharmacy sales market has remained dominated by large groups selling branches through relatively low-value asset sales. 

While there haven’t been as many traditional higher-value pharmacy share sales—where independent owners, often looking to retire after 20 or 30 years, sell their pharmacies—we have still seen quality independent pharmacies changing hands. At present many deals seem to be on hold, possibly due to the aftermath of the Lloyds divestment phase and the uncertainty surrounding the upcoming Autumn Budget. Some sellers are waiting to see if the Government will significantly change the CGT rules.  

We suspect that activity levels in 2025 will be influenced by the outcomes of the Budget. With an increase in independent owners, we can also expect a further shift towards a more service-oriented approach, expanding the range of private services  

If someone is a new owner, or about to embark on that journey – what advice would you give them (without giving too much of the content of your session at the Pharmacy Show this year away, of course!)?  

The best advice is to have a solid team around you. An accountant/tax advisor with experience in the retail pharmacy sector is also vital.  

Specialist pharmacy solicitors and accountants can be invaluable, not just in guiding you through the transaction process, but also in supporting you through the early stages of the business when you are most likely to need sound advice. 

Why would you recommend the Pharmacy Show to someone who is a new contractor, or aspiring to buy soon? 

The Pharmacy Show is a fantastic event for pharmacists, offering a wealth of insights into policy changes and the future of community pharmacy. It’s a great place to discover new products, solutions, and technologies that can really boost your practice. 

For contractors, it’s an absolute must-attend. The show is the perfect opportunity to connect with peers, industry leaders, and suppliers. You never know—you might meet your next business partner, find someone looking to sell their pharmacy, or pick up some invaluable tips from industry experts. 

Plus, it’s a great chance to chat about the challenges and opportunities in the sector, leading to collaborative solutions and shared strategies. The sense of community and support is fantastic. It is a truly rewarding experience for anyone serious about advancing their pharmacy practice. 

Finally, what are you most looking forward to at the Pharmacy Show this year? 

The Pharmacy Show is shaping up to be an incredibly busy and exciting event for me this year. I’ll be sharing my expertise across several sessions- both as a practicing solicitor and a practicing pharmacist. I’m particularly excited about the opportunity to engage with attendees, answer questions, and contribute to discussions that can shape the future of pharmacy practice. 

Beyond the sessions, I’m really looking forward to the networking opportunities. It’s always a pleasure to reconnect with industry colleagues, meet new faces, and exchange ideas. These interactions are invaluable for staying updated on the latest trends and innovations in the field. Plus, it’s a great chance to build new relationships and strengthen existing ones, which can lead to exciting collaborations and opportunities down the line! 

You can catch Thorrun sharing more advice at 14:50-15:20 on Sunday 13 October with Paul Rees, Chief Executive Officer of the National Pharmacy Association, in their session titled From new owner to building a pharmacy portfolio: administrative and legal 101