Selling a pharmacy is never easy, especially if you`ve built it and your patients have served for many years. So you want not only the best value for your business when selling, but also the best for your patients and employees. It is in this context that we have gathered and answered with our expertise in the pharmaceutical industry a list of the questions most frequently asked by pharmacists when selling their pharmacy activities. The wording should clarify the purchase price and the approximate closing date of the transaction for all assets that are included in the agreement and excluded. The letter should also describe certain conditions relating to pharmacy activity as soon as the owner changes ownership. The Memorandum of Understanding could contain confidential provisions that also protect the interests of both parties in the agreement. Once this document has been sent to the other party for verification, the next step in the process can begin. In this context, each pharmacy purchase contract is different and is handled by the seller`s and the buyer`s lawyers. At a very high level, there are 20 key areas in each pharmacy asset sale contract: when you sell a pharmacy, the buyer and seller make a full wealth purchase contract (APA) negotiated by their respective lawyers. In general, the purpose of the asset acquisition contract is to document what is purchased, what is paid and who is responsible for what before and after the sale.
First, the buyer needs proof of the agreement of your local planning authority so that the property can be used as a pharmacy. You must also prove to the buyer that your pharmacy is on the list of medicines for the NHS team concerned and that the premises are registered with the GPhC. Your lawyer will help you understand and comply with all the provisions agreed in the sales contract. In some states, sellers must submit a bulk sales certificate before an agreement can be reached. We agree to give the buyer that advantage, because there really isn`t much to negotiate in these asset-buying pharmacies. All conditions are disclosed in the Memorandum of Understanding, and virtually 100% of the Asset Purchase Agreement is the standard language used when buying and selling any type of business, pharmacy or not. In fact, I believe that the contract for the sale of assets from one transaction to another is similar to 95%, with the remaining 5% being related to specific risks or opportunities of a pharmacy. When a pharmacy owner sells his pharmacy, part of what he sells is the “good will” of the company or the reputation of the specialized product or service that attracts patients there, and the habits they have, that they can continue to bring to it. Without a non-competition clause, the owner would be free to cross the street and immediately open a competing pharmacy.
The non-compete agreement protects the purchaser of the pharmacy by inserting such a provision into the pharmacy`s purchase contract. The sales invoice is the mandatory legal agreement used for the sale of pharmacy assets, such as receipts, inventory, furniture, faucets and equipment. Contracts, agreements and leases relating to commercial property that the seller owns or to which the seller is bound are covered by the buyer. If the seller receives a letter from the buyer outlining the intention to acquire the pharmacy`s assets, the seller should send a letter of confirmation. While the letter is essentially a receipt, it also informs the buyer of the next steps to take with respect to the acquisition of assets. The letter should begin by confirming receipt of the relevant document and telling the buyer what action to take on the document.