HS Financial Services - Pharmacy Finance
Pharmacy Finance

Pharmacy Purchase Finance


Funding your pharmacy purchase
The scope on lending for a pharmacy has many considerations and variables. As advisers we will explore all avenues banks and building societies provide on your behalf, in order to secure the best possible deal that fits with your individual requirements.

When buying a pharmacy there are considerations which we will advise and assist you on:

Deposit Levels

Vary with different banks and practice types

Lending Calculations
These are evaluated by applying the healthcare specialists’ lending criteria, along with consideration of your own personal situation relating to cash at bank, assets and liabilities. If you have properties which have equity in them, these can be utilised for second charges as many lenders have various maximum unsecured lending limits. This can then be utilised to increase the level of lending for a pharmacy purchase to be considerably higher.

Loan Serviceability
Serviceability is another important consideration for the banks and is done on a case by case basis. Their assessment of working capital ensures that the loan is serviceable, as banks like to be certain that when all drawings and loan repayments are taken from the business, to still have surplus cash to cover living costs comfortably.

Government EFG Scheme
Assists with higher unsecured lending limits, but will restrict you with regards to the maximum loan term and an additional annual premium is charged

Changes to Personal Circumstances
if these change it can effect lending levels, please inform us and we will be more than happy to re-assess

Preferential Lower Lending Rates
We have a great relationship with heads of healthcare in our respective healthcare panel of 14 lenders and so receive preferential rates. Once you have found a suitable pharmacy, you can contact us even prior to making an offer so we can assess the business performance and advise accordingly. If it is then viable, we can then approach the lenders to provide indicative loan terms for the pharmacy purchase. Upon receiving these from 14 banks, we will create a full profile for you and by packaging your case to the banks to secure the best possible deal.

Viability Checking – I have found a pharmacy I like

Review current assets and liabilities
An understanding of the individual’s current financial situation will allow us to ascertain the upper levels the banks will go up to.

Pharmacy Found
Prior to even viewing a pharmacy, if you have found a particular pharmacy you are interested in, by providing us with the basic details we will profile the practice to the 14 specialist healthcare banks to see if and see if it is a financially viable proposition for you and them. This will give confidence in not losing a deposit paid to an agent for a pharmacy purchase if the banks will not fund it.

I have found a pharmacy I like

Supply details and accounts of pharmacy found
Once there is a target pharmacy the banks require documentation in order to give a loan in principal. This bundle of documents is paramount in attaining a practice loan, Henry Schein Financial Services will guide and compile this bundle of documents and ensure they are sent to the banks.

Create business case package and approach 14 banks for best deal and rates
A full business case detailing the current business and where the business will be under the new owners is created on behalf of the individual by Henry Schein Financial Services. This is then sent to the banks along with all other documentation required to source the required funding.

Review insurances required by banks and put these in place
When a pharmacy is purchased, banks will require relevant insurances to be in place on the day of completion. With each case being individual, Henry Schein Financial Services will review the requirements and generate the relevant cover to suffice the bank’s needs.

What our clients say

Dental Practice
D Abdah - Stevenage, Hertfordshire
"Emma was very patient in answering all the questions and steered the information in a clear direction for this first-time [potential] buyer. ..."
Practice Purchase
Grethe Louw - Hampshire
"Just wanted to say a huge thank you to Kimberley for her fantastic work...."
Practice Purchase
Dani Mancuso - East Sussex
"’Words cannot express the gratitude I have for the service you provide in helping me to acquire my dream practice. I was impressed that you were there for me at my convenience and able to solve all issues very promptly. ..."

General Buyer Terms

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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