Finding the right legal representation for pharmacy buying or selling
Finding the right legal team for the sale or purchase of a pharmacy is very important, almost as important as finding the right broker. If you have decided to use a large, national broker, you might have access to their legal team (some pharmacy brokers offer a full service including valuation and legal support).It is common for the seller’s solicitor to draw up the sale contracts so make sure your solicitor has experience of creating this type of document. It is a good idea to check their fees to ensure you can cover them (although this calculation should be done already, as you will need to include these costs in the summary figure of how much finance you need).
What will I need specialised help with?
When looking for legal representation to buy or sell a pharmacy you should always approach those with experience of pharmacy sales. There are intricacies associated with the buying and selling of pharmacies that other solicitors will not have worked with before, so an experienced and knowledgeable solicitor is essential. There are a handful of specialist pharmacy lawyers who are more geared towards dealing with charges than commercial law, so make sure the lawyers you use are experienced in commercial transactions, ideally pharmacy sales transactions.
Employment law is one aspect you will need specialist help with, as when buying or selling a pharmacy the existing staff (and their contracts) are part of the deal. If you are selling a pharmacy and want to ensure your staff will continue to be treated in the same way then have their contracts examined by a solicitor with employment law experience prior to completing the sale. Similarly, if you are buying a pharmacy then you will inherit the staff and their contracts. It is essential that you know what you are taking on before you agree to buy, as contracts with longer holiday hours or over-generous sick pay agreements could impact the number of staff hours you have to work with, thereby affecting profitability.
Legal advice concerning dealing with the NHS is also a must-have. It is a specialist solicitor’s job to know and understand the workings of the NHS payment contracts and to help you understand them as well, especially for first time buyers.
If you are selling a pharmacy business in order to buy another one, it would be prudent to find a solicitor with experience of working on both sides of the transaction, as they can then handle both your sale and your purchase. This is much better than using two solicitors as you will be able to build up a good working relationship and they will know your case better than anyone.
How can I find the right legal team for me?
It can be useful to ask fellow pharmacists for recommendations, or to let you know which firms to avoid. As with asking for recommendations of brokers, always make sure you give enough details about your circumstances and needs for others to make a suitable recommendation based on what you are looking for exactly.
Once you have made a list of the potential firms to use, call each one (or email if don’t have time to call each one; a swift response is indicative of good customer service) and ask to speak to a specialist. If you can visit the solicitor in person this is a great way to find out whether there will be a good working relationship between you and them.
If you can enter into the meeting or phone call with a list of probing questions you will be able to determine whether the solicitors knows the pharmacy business well, whether they are able to explain complex issues in simple terms (which is useful for those with little or no understanding of the legal processes surrounding buying or selling a pharmacy) and whether they are willing to make time for a potential client.
If you are selling your pharmacy, ensure that the solicitor has experience drawing up sales contracts, and if possible, ask to see examples of their previous work (with personal information removed), which will give you a good idea of how well they will work for you.
Ultimately, the decision about the legal team you need to use will be up to you, but the advice of fellow pharmacists and your agent will be invaluable in helping you create a short list from which to work. Following the ideas and tips above will ensure your decision is as well-informed as possible.
