PHARMACY VALUATION FEES
How much does a pharmacy valuation cost in Australia?
HPNA values a pharmacy for a fixed fee set by its annual revenue. A full valuation report costs $1,500 for revenue up to $1 million, $2,200 for revenue $1 million to $3 million, $4,950 for revenue $3 million to $10 million and $9,450 for revenue above $10 million, all plus GST. An indicative assessment is $950 plus GST, and an expert report for a dispute between owners starts at $4,495 plus GST. The fee is agreed in writing before work begins and does not change with the value we reach.
Fixed fee, published. Agreed in writing before work starts.
The schedule
Three tiers, each a fixed fee
Indicative assessment
$950
One fee whatever the size of the business, credited against a valuation report if you proceed within 3 months.
Valuation report
- Up to $1 million
- $1,500
- $1 million to $3 million
- $2,200
- $3 million to $10 million
- $4,950
- Above $10 million
- $9,450
Expert report
- Up to $10 million
- $4,495
- Above $10 million
- $16,950
Every fee above is fixed and quoted plus GST, and is agreed in writing before any work starts. Bands are set on annual revenue. A business sitting exactly on a boundary pays the lower fee. See the full fee schedule
Which revenue sets the band
The band is set on the annual revenue of the pharmacy as a whole, dispensary and front of shop together, taken from its most recent financial statements. Many pharmacies are held through a pharmacist company, a partnership or a unit trust. The first entity is included in the fee, and each additional entity that has to be analysed is $795 plus GST. We confirm the band and the entities in scope with you before the engagement is signed.
Worked examples
How the fee is worked out
Each row applies the band rule and the additional entity fee to a hypothetical engagement. The rows illustrate the arithmetic, not what businesses in this sector typically earn. All fees plus GST.
| Engagement | Annual revenue | Tier | Working | Fee |
|---|---|---|---|---|
| A single pharmacy owned by one pharmacist company, valued for a sale | $2,800,000 | Valuation report | $2,200, one entity | $2,200 plus GST |
| A pharmacy held through a pharmacist company and a unit trust, both analysed, valued for a partner buy-in | $6,500,000 | Valuation report | $4,950 plus $795 for one additional entity | $5,745 plus GST |
| Two pharmacists in dispute over the price of a departing partner's share | $4,000,000 | Expert report | $4,495, one entity | $4,495 plus GST |
Which tier
The purpose of the valuation picks the tier
Indicative assessment
For an owner deciding whether to sell, or two pharmacists opening a conversation about a buy-in. It costs $950 plus GST whatever the size of the pharmacy. It is a limited scope view for planning, not a report for a court, the Australian Taxation Office or a lender.
Valuation report
The full independent valuation for a sale or purchase, a partner buying in or leaving on agreed terms, succession, a tax matter or a restructure. It costs $1,500 to $9,450 plus GST depending on revenue.
Expert report
For a partnership or shareholder dispute, or an expert determination under the partnership or shareholders agreement, where another party will test the conclusion. It starts at $4,495 plus GST.
What you are paying for
What the fee covers in a pharmacy valuation
The fee covers the whole engagement as scoped: the analysis, the valuation and the written report. For a pharmacy the analysis works through the matters that decide how much of the earnings a new owner keeps.
- The section 90 approval and how the Pharmacy Location Rules protect or expose the site
- The lease, its remaining term and options, because the approval attaches to the premises
- Dispensing data, script mix and the effect of 60-day dispensing on dispensary income
- A market salary for the owner pharmacist in place of whatever the owner actually draws
- Stock, which is usually valued separately at cost
- State and territory ownership limits and what they mean for the pool of buyers
Fee or commission
Why a valuation costs a fee when a broker appraisal does not
A pharmacy broker will usually appraise a pharmacy without charging for it, because the broker is paid a commission if the pharmacy sells. That is a sensible way to test the market before listing. It is not an independent opinion: the person giving the figure earns more when the figure is higher and nothing if there is no sale. A valuation is paid for by a fixed fee so that the conclusion has no bearing on what the valuer earns. Business valuation versus business appraisal compares the two in detail.
Go deeper
Read the full analysis
- Sector pagePharmacy valuationsHow businesses in this sector are valued: methods, earnings adjustments, risks, value drivers and the information required.Read
- AnswerHow much is my pharmacy worth?What the answer depends on in this sector, what pushes it up and what pushes it down.Read
- FeesThe full fee scheduleEvery tier and band, the boundary rule, the additional entity fee and what the fee includes.Read
FAQs
Pharmacy valuation fee questions
How much does a pharmacy valuation cost?
HPNA values a pharmacy for a fixed fee set by its annual revenue. A full valuation report costs $1,500 for revenue up to $1 million, $2,200 for revenue $1 million to $3 million, $4,950 for revenue $3 million to $10 million and $9,450 for revenue above $10 million, all plus GST. An indicative assessment is $950 plus GST, and an expert report for a dispute between owners starts at $4,495 plus GST. The fee is agreed in writing before work begins and does not change with the value we reach. Each additional entity that has to be analysed is $795 plus GST. The full schedule is on the pricing page.
Does the fee depend on the value HPNA reaches?
No. The fee is fixed for the revenue band and agreed in writing before the work starts, so it cannot move with the conclusion. HPNA also takes no commission from any party to a transaction. A valuer who is paid more for a higher figure is not independent, which is why the fee is set this way.
Does a pharmacy held through a company and a unit trust cost more to value?
Only if more than one entity has to be analysed. The first entity is included in the fee. Each additional entity that has to be analysed, such as a second company or a unit trust in the ownership structure, is $795 plus GST. The band itself is set on the revenue of the pharmacy as a whole, not on each entity. We confirm how many entities are in scope before the engagement is signed, so the total is known in advance.
Which fee applies when one pharmacist is buying out a partner?
Where the partners have agreed to obtain a valuation and act on it, the standard valuation report applies, at $1,500 to $9,450 plus GST by revenue. Where the price is in dispute, or the partnership or shareholders agreement calls for an expert determination, the work is an expert report, which starts at $4,495 plus GST, because the report will be read and tested by the other side and their advisers.
Make your next decision with a clear understanding of value.
Tell us about your healthcare business and the purpose of the valuation. We will confirm the appropriate scope, information requirements, timeframe and the fee band that applies.