Meridian Lawyers acts for pharmacists in the sale and purchase of their pharmacy businesses. Issues which arise in these transactions commonly include:
- the negotiation of the contract for sale of the business in order that the written contract reflects the wishes of the parties
- the obtaining of necessary approvals and consents (such as Pharmacy Council of NSW approval and a PBS approval from the Department of Human Services)
- the grant or assignment of the premises lease
- the treatment of employee entitlements on transfer of a business
- the requirements of lenders for security including right of entry deeds.
Recently, we have seen an increased resistance by lessors to consent to the assignment of pharmacy leases. In our experience, lessors are requiring more information about a prospective assignee, and additional security for the lease such as increased bank or personal guarantees than has traditionally been the case.
The legislation governing retail leases in a particular State or Territory can sometimes assist in securing lessor’s consent, as can the wording of the relevant lease which might dictate the circumstances in which a lessor can withhold consent.