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Who is Your Agent Really Working For?

Is there a conflict of interest with your pharmacy sale?

As a business owner I always ask myself how I would like to be treated if I was selling my business. This is my biggest asset built up over many, many years of hard work. I am very proud of my team, our business ethic and achievements over the last 20 years. So when I take on a new client I am mindful that we look after that client properly and provide the best service we possibly can to ensure we don’t just meet your expectations but we exceed them. I know how important it is for the new owner to look after your loyal staff and for you to get the best price achievable. These are the things that I would want if I was selling my business.

It would just not be acceptable to me to have my business sale handled by agents who have a conflict of interest. As a pharmacy owner selling your business you would expect the agent you appoint to sell your pharmacy to be acting for you in your best interest. Unfortunately, this is rarely the case. Most agents will not just be charging you when they sell your pharmacy, they will also be making money from your buyer!

How does this work?

Referral fees – Some agents own their own finance brokerage company referring buyers directly there in return for lucrative referral fees. If they don’t actually own a finance company they have arrangements in place directly with banks and finance brokers who pay substantial fees/commissions for the referrals. When this happens you as the business seller will lose out because the agent will want to maximise their income by giving preferential treatment to a buyer prepared to use their recommended financial services. This may be at the expense of a buyer who is prepared to pay a higher price for your pharmacy or a cash buyer who doesn’t need finance and can complete on the sale very quickly. Making money from both buyer and seller in this way is a direct conflict of interest and in my opinion it is also unethical. The only people benefiting from this are the sales agents themselves.
The Double Agent – as the name suggests charges both the buyer and the seller. It’s hard to know who the double agent is acting for. While the lower fees can seem attractive to the seller, the agent has a real conflict of interest between the seller and the buyer, so how can you possibly get the best deal. If an agent offers to sell your business for a low fee, they will probably also be taking a payment from the buyer.

So who can I trust?

I have built my business, Hutchings Consultants, based on never having any conflict of interest with buyers. We only ever act solely in your interests as seller, you are our client, giving you peace of mind and assurance that we are genuinely working for you to secure the best possible price and terms for you.
If you are thinking of selling now or in the next few years and would like to have a chat about the market and value of your pharmacy please don’t hesitate to give me a call on my direct line below or drop me an email, I would be delighted to hear from you.

Anne Hutchings, Managing Director

Anne Hutchings

Managing Director, Hutchings Consultants Ltd.
E: [email protected]
T: 01494 422 848

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