Pharmacy Sellers

If you are considering selling your pharmacy, we will help you maximise your pharmacy value and minimise your tax bill.

The first step

We understand that selling your pharmacy business can be stressful and incur high fees. We can help with our fixed fee Sellers package by talking care of all your accounting requirements with the purchase, and you’ll also benefit from our extensive experience in dealing with pharmacy sales. 

Get a free tax review

We also offer a FREE review of your tax position and accounts. If you have been approached by prospective buyers we will review the proposed sale structure to assess how tax efficient it is. We’ve seen many cases where poorly structured deals have ended up costing the seller a lot, so even when you have already taken advice, getting a second opinion can be very valuable! Contact us for a free initial meeting to discuss your requirements.

As well as the usual compliance work like preparing accounts, tax returns, VAT and payroll, we can also assist those who wish to sell or develop their pharmacy business. If you plan to sell your business we can help by providing the following services:

How we help pharmacy sellers

Working out the best way to structure your sale for tax purposes

Getting the structure of your sale right can have huge tax implications that can sometimes amount to a difference in your tax bill of hundreds of thousands of pounds! We have the experience to know what will be the best way to do it that fits your individual circumstances.

Business Asset Disposal Relief – do you qualify

Your gains from selling your business can sometimes be taxed at a lower rate due to the availability of BADR, as long as certain conditions are met. We can advise on what steps may be required to take advantage of this valuable tax relief!

Tax planning for final year remuneration

We can advise on the most tax efficient way to extract profits from the company tailored to your personal requirements.

Preparing final/completion accounts and net asset adjustments

Completion accounts and net asset calculations are an extremely important part of the sale process, and are very specific to pharmacy sales. As such most accountants won’t have the necessary expertise and technical knowledge to prepare these correctly, which could result in you losing money. We can help to ensure you receive every penny you are due.

Advising on excess cash within the business

Many pharmacy owners build up cash reserves in the business before selling, and this can have significant implications for the sale. We can advise on the best way to deal with this to make sure you get to keep as much of your money as possible.

Preparing management accounts

Once your sale is underway, buyers will sometimes want to see management accounts so they can monitor the business’s progress, and it’s very important these are prepared and presented correctly.

Review of warranties in your sale agreement

Our many years of experience mean we can review sale agreements in detail to make sure your exposure to risk is minimised and you’re interests are protected.

Working with your accountant on your sale

Many pharmacy owners have accountants they have worked with for years and are happy with, but who nonetheless lack the necessary level of experience dealing with the technical aspects of pharmacy sales. We can work with your accountants to make sure you can benefit from our expertise in this area.

Personal tax returns and minimising your tax liability

Whether you run your business as a limited company, partnership or sole trader, there will be personal tax due when you sell it. We can help make sure you don’t pay any more than you absolutely have to.

Our partners

We also work with a number of trusted partners with specialist knowledge of areas like wealth management, pensions, inheritance tax and wills and probate, and can recommend someone with the necessary expertise to assist you in these matters.

Sale already in progress

If you’ve been approached by potential buyers or your sale is already being negotiated, we offer a free review of the proposed sale structure to assess how tax efficient it is. We’ve seen many cases where poorly structured deals have ended up costing the seller a lot, so even when you have already taken advice, getting a second opinion can sometimes be very valuable!

Six steps to a tax efficient pharmacy sale

Review of your tax position

Once you've decided you want to sell your pharmacy, we will review your accounts and tax position to recommend the most tax efficient way to proceed, including whether you'll qualify for Entrepreneurs Relief. This sometimes involves making changes to the company or seeking clearances from HMRC. Getting the structure of your sale right can have huge tax implications that could make a difference of hundreds of thousands of pounds to your tax bill, so it's important to look at this as early as you can.

The Due Diligence process

When a potential buyer has been found, the next step is for them to look at the company's financial records to make sure they understand what they are buying, in a process known as 'financial due diligence'. This is usually led by the buyer's accountants, and we would provide information and answer their questions drawing on our experience to make this run as smoothly as possible. 

Checking the Sale Agreement

Tax covenants and warranties form part of the legal contract for the sale and are meant to deal with potential tax liabilities and claims against you post completion, relating to your period of ownership of the business. Our many years of experience mean we can confidently review sale agreements in detail to make sure your exposure to risk post sale is minimised and your interests are protected.

Completion

Several weeks before the point of completion we need to provide the buyer's side with a projected figure for the company's net asset position at that date. This requires preparing the computation and liaising with you and your solicitor and the buyer and their advisers. It often involves our negotiating with the parties regarding retentions on completion etc, so our experience of market deals is crucial to ensure the best result for you.

Completion Accounts

The sale proceeds that you get for your pharmacy are made up of the value of the goodwill plus a payment for the net current assets (or liabilities) at the point of sale. We prepare the completion accounts to this date including the final computation of the net assets/liabilities of the company, and this needs to be checked and agreed by the buyers so that the final payment can be made to you. It's important to understand the completion accounts process and adjustment mechanism so you receive every penny due to you from the buyer.

Your Personal Tax

The final step is declaring the sale on your personal tax return and calculating and paying the tax due. We can help to ensure you claim all available reliefs and pay the least tax possible, so you end up with more money in your pocket

Make sure you speak to a pharmacy specialist accountant