Buying a pharmacy in Scotland can be an exciting step for any pharmacist. It can also be a complex legal process. Unlike buying a standard retail business, a pharmacy purchase involves regulation, property issues, NHS contract considerations and sector-specific due diligence.
For first-time buyers in particular, the process can feel daunting. Good preparation and the right professional support can make a major difference. Here are five practical tips to help you approach a pharmacy acquisition in Scotland with confidence.
1. Secure the right funding support early
Funding is one of the first issues to address when buying a pharmacy in Scotland. Working with a specialist pharmacy finance broker, or a healthcare relationship manager within a mainstream bank, can improve your chances of securing approval on the right terms.
Pharmacy funding applications often need to account for factors that do not arise in other business purchases, such as NHS income, dispensing volumes and script levels. A specialist adviser will understand how to present these points clearly to credit teams and may help you avoid costly delays or mistakes.
2. Make sure your due diligence is pharmacy‑specific
Due to the additional sector specific regulatory requirements, a standard or general commercial due diligence exercise isn’t enough for a pharmacy acquisition. Ideally, you want to ensure that issues such as:
- Controlled drugs compliance;
- NHS payment reconciliation;
- Staffing and locum arrangements (in particular right to work checks and sponsor licence requirements);
- GPhC inspection history; and
- Any ongoing complaints or investigations,
are all adequately covered off as part of any due diligence investigations. Issuing a due diligence questionnaire that isn’t specifically tailored to the pharmacy sector may result in issues being missed that could materially affect the value of the business, or expose you to regulatory risk.
3. Do not assume the NHS contract will transfer automatically
In Scotland, the pharmacy’s NHS contract is the lifeblood of the business. Scottish pharmacies operate under a national contract with local Health Boards. A key point to remember is that the NHS contract does not automatically transfer when you buy the pharmacy. You must liaise with the Health Board and get their approval before you can operate.
Separately from the Health Board, any new pharmacy owner must notify the GPhC of the change of ownership within 28 days.
4. Check the premises carefully
Property issues can have a major impact on a pharmacy purchase, especially where the premises are leased rather than owned. Before completion, your property solicitor should review the legal position in detail.
This includes:
- lease terms, including rent reviews, break clauses and assignation rights
- whether landlord consent is needed
- planning use and any restrictions affecting pharmacy use
- health and safety compliance
- accessibility requirements
Pharmacies often have specific layout, security and operational requirements. It is important to confirm that the premises are legally fit for purpose and suitable for the business you are buying.
5. Use advisers who understand Scottish pharmacy transactions
This is one of the most important points for any buyer. Using a solicitor and accountant with experience in Scottish pharmacy transactions can help you identify issues early, manage risk and keep the deal moving.
Sector experience can help you:
- spot pharmacy-specific legal and regulatory risks early
- understand the practical steps involved in the transaction
- avoid delays linked to NHS, GPhC or property issues
- complete your purchase on a stronger footing
For buyers, that expertise can save time, money and stress.
How to prepare for a pharmacy purchase in Scotland
If you are planning to buy a pharmacy in Scotland, it is worth taking advice at an early stage. The right support can help you structure the deal properly, carry out focused due diligence and deal with funding, property and regulatory requirements in a joined-up way.
If you are considering buying a pharmacy in Scotland, our specialist team supports buyers at every stage of the process, helping you manage risk at every stage. Get in touch with Kim Campbell to discuss your proposed pharmacy purchase.
