Over the last ten years the Day Lewis Group has built up a chain of
over 160 retail chemists and opticians in the UK, from East Anglia to Cornwall.
The company’s objective is to continue to acquire pharmacies that are within or close
to our existing geographical boundaries and which fit the company profile.
We are always keen to hear from pharmacists who wish to sell their business.
There are a number of key facts which dictate a decision to buy. These are listed below. For further information please contact
Tony Hough on
tonyhough@daylewisplc.com or 07702 920966.
| Turnover: |
Minimum £500,000 per annum |
| Items dispensed: |
Minimum 2500 per month |
| Location: |
Proximity to local doctor's surgeries is vital. Also of importance is its situation in the community (is it on the high street, within a community's shopping parade etc). |
Distance from nearest
Day Lewis Pharmacy |
Must be on or near existing delivery routes for easy servicing. |
| Competition: |
The distance to the nearest competing pharmacies is an important consideration. |
| Potential: |
Vendors very often declare there is plenty of potential. We consider carefully such statements. Unfortunately in many cases the potential has already been realised and can be limited. However where there is obvious potential we will factor this into our calculations when assessing a pharmacy’s worth. |
| Profitability: |
The old rule about making sure you know the cost of running a pharmacy before opening the door is as true today as ever before. The most important factor (often overlooked by prospective purchasers) is the profit on the bottom line after all fixed and variable overheads have been taken into consideration. With Day Lewis this includes the cost of a pharmacist on the premises for each hour the
pharmacy is open. If the net profit before tax is insufficient to produce an acceptable return on capital, the pharmacy is unlikely to be of interest. |
| Property: |
Pharmacy profit margins have never been under so much pressure
as they are today. High rents and onerous terms in a lease can (and often do) absorb too
much profit.
When buying a business, if the premises are leasehold we always check on the next rent
review date and try and discover current rents in similar premises.
The condition of a property is also important. Who is responsible for maintenance? Has
the property been neglected? Is the landlord about to serve notice that expensive
repairs are needed?
We always have properties surveyed to establish any potential liability. We also prefer
to buy freehold property whenever possible. |
| Disposal: |
We may from time to time sell off smaller pharmacies
which no longer fit within the company profile. If you are interested in buying a
pharmacy from Day Lewis, please contact Tony Hough. |
