Forward planning essential for pharmacy owners

Are you a pharmacy owner? Have you thought about the legal and financing considerations when the time comes to exit your pharmacy business?

At the recent Pharmacy Connect conference, organised by the Qld and NSW Branches of the Pharmacy Guild of Australia, in Sydney over the weekend of 10 and 11 September, I co-presented a paper on ‘Legal and financing considerations when exiting a pharmacy business’. Presenting with Principal Mark Fitzgerald and Special Counsel Georgina Odell, we highlighted the importance of forward planning an exit model in pharmacy partnerships.

There are numerous events that may impact on the continuity of a business in its life cycle, for example, if a partner resigns, is ill or injured, ceases to be able to practice as a result of deregistration, breaches the pecuniary interest prohibition, becomes bankrupt or materially breaches the terms of a partnership agreement.

A carefully drafted exit clause will provide certainty for continuing partners in protect their interests in a contentious exit and provide a degree of control for all partners in the event of an exit.

Various mechanisms can be employed to engineer a fair and reasonable exit with the inclusion of a call option, breakdown option or pre-emptive rights and a valuation process within the terms of a partnership agreement. Contact Michael Bracken for more information.

Comments are closed.

Contact

  • Sydney

    Level 16, MLC Centre
    19 Martin Place
    Sydney, NSW 2000
    T:
    +61 2 9018 9999
    F:
    +61 2 9018 9900
  • Melbourne

    Level 12, 357 Collins Street
    Melbourne VIC 3000
    T:
    +61 3 9810 6777
    F:
    +61 3 9810 6770
  • Newcastle

    Level 6, 45 Watt Street
    Newcastle NSW 2300
    T:
    +61 2 4047 2600
    F:
    +61 2 4047 2699
  • Brisbane

    Level 8, 60 Edward Street
    Brisbane QLD 4000
    T:
    +61 7 3220 9333
    F:
    +61 7 3220 9399
  • Perth

    Level 3, 225 St Georges Terrace
    Perth WA 6000
    T:
    +61 8 6319 0470
    F:
    +61 8 6319 0499