Keencare Pharmacy Sale

Keencare Pharmacy, Greater London (Branches in Harrow & Victoria)

When the Shah Brothers were planning for their retirement, they realised that the time would soon come to think about selling the family business which the three brothers had successfully operated for the last 30 years. They met with several agents before deciding but finally chose Hutchings because of our experience, comprehensive service and recommendations received from friends.

Hutchings met with Dilip, Rashmi and Shailesh several times at the pharmacy and also with their accountant and tax advisors before the sale got underway. We were able to assist and guide them in terms of the market expectations and the best way to structure the deal for presentation to the market.

This sale was slightly more complicated than most because there was a freehold, long leaseholds, and a pension fund all interconnected between the company and individuals. The existing company structure required some careful thought as to how to package it for market whilst both maximising the goodwill value, the saleability of the business and at the same time, minimising the Shah’s tax bill as far as possible.

Before the marketing commenced, Hutchings highlighted that potential purchasers may have had some concerns with one of the units lease terms – subsequently the Shah’s had a good understanding of the matter and were able to agree a much more buyer friendly position with their landlord at review, which would have allowed for higher goodwill value to be attributed to the business. When we finally marketed the company, it was received positively by the market and multiple offers were received. We successfully negotiated these offers upwards to their maximum bids. From five financially qualified final offers received for the business, the successful bid was tendered by a relatively small but fast growing pharmacy chain with units sited across London. Greenlight Healthcare could really see the potential in the two Keencare shops and this was demonstrated not only in their offer for the business but time and time again in the way they dealt with matters throughout the sale, their commitment, attitude and efficiency.

Once the sale was with solicitors, Hutchings role changed to that of ensuring a swift sale progress and supporting the Shah Brothers in the legal aspects. The first task in hand was to tie the deal together quickly with a tight exclusivity and deposit arrangement between the buyer and seller, affording the Shah’s reassurance and confidence in both the deal and buyer. Hutchings were on hand at every step to offer the Shah’s guidance in terms of NHS regulations and the legal due diligence process and act as a buffer and negotiator between buyer and seller in order to agree the best possible outcome on sticking points, thus ensuring continuity of the deal.

“Your sound advice and help before marketing the pharmacy allowed us to present a far more buyer-friendly business which resulted in a successful sale for us. You are a very professional company who understands the pharmacy market inside out and having never sold previously, your knowledge and experience was invaluable.”

Dilip Shah – Harrow, London

Throughout the sale, Hutchings were able to keep pressure on both sets of solicitors, the buyers and the lending bank thereby helping ensure the deal was successfully completed as quickly as possible.