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.

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