How to buy a pharmacy in the UK
Buying a community pharmacy is a significant commercial decision. This guide sets out the main steps so you know what to expect. It is general information, not legal, tax or financial advice, and you should take specialist advice from a pharmacy accountant, solicitor and finance broker.
1. Decide what you are looking for
Settle your area, budget, preferred size of business and the balance of NHS and private income you are comfortable with. First-time buyers often compare several towns; existing owners usually have a travel-distance limit. See the areas we cover.
2. Assemble your advisers
Most buyers use a specialist pharmacy accountant, a solicitor experienced in pharmacy transactions and a finance broker who understands pharmacy lending. Brokers and accountants who work in the sector can also tell you what is realistic in your area.
3. Arrange finance early
Lenders typically look at the business's trading history, your deposit and your experience. Having finance agreed in principle makes you a stronger buyer. See our first-time buyer guide for more.
4. Find opportunities
Established brokers hold most instructions and many sales are confidential. Registering with several brokers, and with us, helps you hear about opportunities as they arise.
5. Review the business
- Accounts and the split between NHS and private income.
- Dependence on particular surgeries and local competition.
- The lease: length, rent, review terms and assignment.
- Staff, their terms and how the pharmacy runs day to day.
- Compliance history and any outstanding issues.
See also our valuation guide.
6. Offer, due diligence and completion
Sales are commonly structured as an asset sale or a share sale, which has different legal and tax consequences, so take advice. Completion involves the NHS contract and regulatory changes. Your solicitor and the broker will guide you through the specifics.