Finance question
Can I get finance to buy a pharmacy?
Yes, if you are a registered pharmacist or a pharmacist-owned entity, because that is who the law allows to own a pharmacy. Pharmacists are treated as a low-risk profession, and lenders publish appetite of 60 to 80% of independent valuation, with up to full funding where residential property equity secures the balance, subject to lender assessment.
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The short answer
The ownership rule decides who can borrow
Pharmacy is the most rule-bound business purchase in Australia, and the rule comes first. Every state and territory limits ownership to registered pharmacists or pharmacist-owned entities, and caps how many one pharmacist can hold: five in NSW, Victoria and Queensland, four in most others. If you are not a pharmacist, the market is closed to you directly. If you are, lenders see a low-risk profession, which makes this one of the most bankable acquisitions around.
The price is set on earnings, not turnover. The guide shows small rural pharmacies at $500,000 to $900,000 on 4 to 4.5 times adjusted earnings, suburban community pharmacies at $1m to $3m on 4.5 to 5.5 times, and premium or medical-centre sites at $5m plus on 5.5 to 6.5 times, with an owner salary of around $124,000 added back (pharmacy guide). What moves the multiple is rent under 8 to 10% of gross profit, wages under about 55%, front-of-shop margin above 35% and five-plus years of lease. A lender lends against an independent valuation, and the valuer is looking at the same ratios.
Lenders publish appetite of 60 to 80% of the independent valuation, not of your contract price, so paying above valuation widens your gap. The practical path for a pharmacist with a gap is equity in a home or other property at property-backed pricing, which is how the deposit gap on a $2m pharmacy is commonly bridged. Check whether stock sits inside the price or is added at valuation on settlement day, and have the lease terms in hand early, because a short lease cuts the multiple. Ventas is a broker across 40+ lenders, not a single bank, and the lender pays us on settlement, so there is no upfront fee to you.
Do you qualify?
What a lender looks at on a pharmacy purchase.
Pharmacist ownership
You, or a pharmacist-owned entity, must be the owner under state law.
Adjusted earnings
Priced on proprietor's earnings with an owner-salary add-back, not turnover.
Equity behind the deposit
Home equity can bridge the gap between the advance and the price.
Lease and ratios
Rent, wages, front-of-shop margin and years of lease all feed the valuation.
Why pharmacy is a bankable purchase
A low-risk borrower
Lenders treat pharmacists as a low-risk profession.
Published appetite
60 to 80% of independent valuation is the quoted range.
Equity completes the deal
Residential property can secure the balance, up to full funding.
A worked example
A pharmacist buys a suburban community pharmacy at $2m, inside the guide's $1m to $3m band. Suppose, subject to lender assessment, the independent valuation is $2m and the lender advances 70%, which is $1.4m. The $600,000 gap is secured against the pharmacist's home, so the purchase is funded in full, with stock and costs budgeted on top. Illustrative only.
Common questions
Frequently asked questions
Can a non-pharmacist buy a pharmacy in Australia?
No. Every state and territory restricts ownership to registered pharmacists or pharmacist-owned entities, with caps on how many one pharmacist can hold.
How much of a pharmacy purchase will a lender fund?
Published appetite is 60 to 80% of independent valuation, and up to full funding where residential property equity secures the balance. It is subject to lender assessment.
What multiple do pharmacies sell for?
The guide quotes 4 to 4.5 times adjusted earnings for small rural pharmacies, 4.5 to 5.5 times for suburban community pharmacies and 5.5 to 6.5 times for premium sites.
How do I cover the gap between the loan and the price?
The usual route is equity in your home or another property, secured at property-backed pricing. The deposit gap on a $2m pharmacy is commonly bridged this way.