In this episode of Pharmacy Ownership & Economics, a stream of the Pharmacy View Podcast host, Natalie Sirianni, Director of Attain Business Brokers, speaks with Mark Churchill, Managing Director of Allfin. Mark shares his unique journey into pharmacy finance, starting with a background in asset finance and auctioneering before transitioning into banking and ultimately founding his own broking firm specialising in pharmacy finance. Throughout the episode, Mark provides invaluable advice for pharmacists considering ownership, from navigating the complexities of financing to assembling the right advisory team.
Mark highlights the financial realities of Pharmacy ownership, noting that average valuations typically fall between $2-3 million. He recommends prospective buyers focus on acquiring Pharmacies where they already work, as familiarity with the operations, customer base, and financials can ease the transition. Mark also emphasises the importance of due diligence, demographic analysis, and cultural alignment, particularly for community-focused Pharmacies, as key factors in ensuring long-term success.
Navigating financing can be one of the most challenging aspects of purchasing a Pharmacy, especially for first-time buyers. Mark explains the options available, from traditional bank loans, which typically cover 75-80% of the purchase price, to alternative funding sources such as parental support or secondary lenders. He underscores the importance of structuring loans properly to maintain cash flow viability and meet banks’ requirements. Mark also advises buyers to work within the Pharmacy they plan to purchase, as this familiarity reduces risks and improves financial sustainability.
Partnerships in Pharmacy ownership present their own set of challenges and opportunities. Mark stresses the importance of clear partnership agreements to prevent conflicts and facilitate smooth exits when necessary. He advises new owners to focus on long-term growth, often committing at least five years to stabilise operations and realise returns. By working with experienced partners, new owners can mitigate risks, gain valuable insights, and grow equity.
Finally, Mark underscores the critical role of trusted advisors in the ownership journey. He advises first-time buyers to work with industry-specific brokers, accountants, lawyers, and lease negotiators who understand the nuances of Pharmacy transactions. Delegating tasks like bookkeeping to professionals, he suggests, allows owners to focus on their customers and maintain a work-life balance. Ultimately, Mark advocates for strategic planning, professional guidance, and a focus on equity growth to ensure a successful and rewarding Pharmacy ownership experience.
Topics Covered
- Mark Churchill’s Journey into Pharmacy Finance
- Pharmacy Valuations and Costs
- Due Diligence and Financial Planning
- Financing Options for Pharmacy Purchases
- Managing Debt and Cash Flow
- Partnerships in Pharmacy Ownership
- Equity and Loan Structures
- Investment Potential and Long-Term Outlook
- Choosing the Right Advisors
Key Quotes (Time Stamps)
- “60 to 70% of the portfolio I got given was Pharmacy.” (3:21 – 3:25)
- “But if you work in the store before you buy it, you actually know the numbers, you know the scripts, you know what’s going on behind the scenes. It’s a safer option.” (7:19 – 7:28)
- “You’ve got to look at ownership as an investment.” (32:03 – 32:06)
- “As an investment, it’s probably smarter to buy a Pharmacy than buying a house.” (32:58 – 33:03)
Important Time Stamps
- From Banking Rookie to Industry Leader: Mark Churchill’s Pharmacy Finance Story (1:34 – 5:32)
- Demystifying Pharmacy Buy-Ins: Expert Advice from Mark Churchill (5:49 – 8:41)
- Financing Your First Pharmacy: Tips from an Expert (8:42 – 12:14)
- Balancing Cash Flow, Debt, and Growth in Pharmacy Ownership (12:15 – 15:07)
- Partnership Pitfalls: Why a Solid Exit Strategy Is Non-Negotiable (15:08 – 24:12)
- Why Smart Debt is the Key to Pharmacy Success (24:13 – 31:37)
- Why Pharmacy Ownership is a ‘No-Brainer’ Investment (31:38 -33:50)
- Why Industry Experts Make All the Difference in Pharmacy Ownership (33:51 – 38:03)
Useful Links
Australian Institute of Business Brokers (AIBB) | LinkedIn
Shopfront Solutions: Overview | LinkedIn
Aerion Technologies: Overview | LinkedIn
Aerion Technologies | Helping Non-Techs Build Better Tech
