When auto-enrolment launched earlier this year, many employers understandably had one goal: get it up and running correctly.

Fast forward a few months and the next milestone has arrived.

From July 2026, the first employees automatically enrolled into My Future Fund will reach the point where they can decide whether to remain in the scheme or opt out.

For employers, this isn’t about pressing the panic button. It’s simply the next stage of the process – and a good opportunity to make sure your payroll processes, systems and internal procedures are working exactly as they should.

A Quick Refresher

Under Ireland’s new auto-enrolment pension scheme, eligible employees began joining  My Future Fund earlier this year.

Once an employee has completed their initial six-month participation period, they enter an opt-out window, during which they can choose to:

• Remain enrolled in the scheme.
• Opt-out within the permitted timeframe.
• Receive a refund of their own employee pension contributions made during the qualifying period, in accordance with the scheme rules.

The important point to remember is this:

The decision belongs entirely to the employee.

An employer’s role is to administer the scheme correctly, provide factual information where appropriate, and continue to meet their payroll obligations.

How Does the Opt-Out Process Work?

One of the most common questions we’re hearing is:

“If an employee wants to opt out, what happens next?”

The good news is that employers are not responsible for processing opt-out requests themselves.

Instead, the process is managed by My Future Fund (NAERSA).

The process is straightforward:

1. The employee completes their initial six months of participation.
2. My Future Fund notifies the employee when their opt-out window opens.
3. The employee submits their opt-out request directly through the My Future Fund online portal.
4. NAERSA confirms the request and notifies the employer.
5. The employer updates payroll and stops future deductions from the date instructed.

A Helpful Reminder

Even if an employee tells you they wish to opt out, don’t stop payroll deductions until you’ve received formal confirmation from NAERSA.

This helps ensure compliance and avoids payroll errors.

What Does This Mean for Employers?

For many businesses, this will be the first time employees begin making different decisions about their pension.

Some will remain enrolled.

Some will choose to opt-out.

Others will simply have questions.

That means payroll, HR and management teams should be prepared to respond consistently and understand how the process works.

Fortunately, if your payroll systems and internal procedures are already in good shape, there shouldn’t be any major surprises.

Now Is a Good Time for a Payroll Health Check

Before opt-out requests begin arriving, it’s worth taking a few minutes to review your processes.

Ask yourself:

• Are your payroll systems fully up to date?
• Are employee records accurate?
• Does your payroll team understand how opt-out notifications will be received and processed?
• Are your internal HR procedures clear and consistent?
• Is everyone responsible for payroll aware of the latest scheme requirements?

Like most payroll matters, small issues are much easier to resolve before they become larger administrative headaches.

Communication Matters

Auto-enrolment is still relatively new, so it’s perfectly natural that employees will have questions.

The best approach is a simple one:

Provide clear, factual information and direct employees to the official My Future Fund guidance where appropriate.

Avoid encouraging or discouraging participation. The legislation has been designed so that remaining enrolled – or opting out – is entirely the employee’s decision.

Looking Beyond July

The opening of the opt-out window is another reminder that auto-enrolment isn’t a one-off payroll project.

It’s now part of the ongoing employment landscape.

Businesses with robust payroll processes, accurate employee records and clear internal procedures will find future milestones much easier to manage.

In other words, a little preparation today can save a lot of administration tomorrow.

Frequently Asked Questions

Can an employee opt out immediately?

No. Employees must first complete the initial six-month participation period before they become eligible to opt out.

Does an employee opt out through their employer?

No. Employees submit their opt-out request directly through My Future Fund. Employers will receive formal notification from NAERSA once the request has been processed.

Should employers stop payroll deductions if an employee asks?

No. Payroll should only be updated once official confirmation has been received from NAERSA.

Will employees receive their pension contributions back?

Employees who opt out during the official opt-out window will receive a refund of their own employee contributions in accordance with the scheme rules.

Can an employee rejoin the scheme later?

Yes. Employees may choose to opt back into the scheme, and eligible employees may also be automatically re-enrolled under the legislation.

How Fitzgerald Power Can Help

Auto-enrolment has introduced a new layer of payroll administration for employers across Ireland, and the opening of the opt-out window is another important milestone.

Whether you need support reviewing your payroll processes, ensuring compliance, or understanding how auto-enrolment fits into your wider payroll and HR procedures, our Payroll team is here to help.

If you’d like to discuss how the July opt-out window could affect your business – or simply want reassurance that your payroll processes are ready, get in touch with us today.

The post Auto-Enrolment: What’s Next for Employers? appeared first on Fitzgerald Power.

Every quarter we’re inundated with economic data. Inflation. Interest rates. GDP. Consumer confidence.

They’re all essential measures of economic health, but they don’t always tell us how those trends are being felt in everyday life. So, we decided to start somewhere a little more familiar.

The price of a Monday morning latte.

Welcome to the Fitzgerald Power Latte Index.

Each quarter, we’ll track the cost of a standard Starbucks Tall Latte across seven major global cities. It’s our own light-hearted take on the famous Big Mac Index – but beneath the foam is a surprisingly useful snapshot of consumer prices, operating costs and inflationary pressure.

No, we’re not suggesting the European Central Bank swaps inflation reports for flat whites. But sometimes the smallest purchases tell us the biggest stories.

Q2 2026: The Story Isn’t Higher Prices – It’s That They Haven’t Fallen

The headline this quarter isn’t another surge in prices. It’s something arguably more interesting. Despite signs that wholesale coffee markets have begun to stabilise after two years of volatility, consumers are seeing very little relief when they reach the till.

Across the seven cities in our index, prices barely moved.

London remains the most expensive city for a latte at €6.00, nudging above the €6 mark for the first time, while Dublin holds steady at €5.65. Elsewhere, Berlin is unchanged, Sydney records only a modest increase and Tokyo remains comfortably the lowest-priced city.

The good news?

Your coffee probably didn’t get more expensive this quarter.

The bad news?

It didn’t get any cheaper either.

For businesses, that’s telling us something important.

The cost of coffee beans is no longer the biggest challenge. Labour, rent, insurance, utilities and operating costs continue to outweigh any easing in commodity prices. Businesses aren’t cutting prices because, quite simply, they still can’t afford to.

Dublin: Still Paying Global Prices

At €5.65, Dublin remains the second most expensive city in our index, sitting just behind London.

For a city of its size, that’s remarkable.

Dublin continues to price like a global capital, reflecting the significant cost pressures facing Irish businesses. Commercial rents remain high, wage costs continue to rise and strong consumer demand allows premium pricing to hold.

Or, put another way… It turns out we’re not just paying premium prices for housing.

The consistency is perhaps the most interesting finding. Despite signs that global commodity prices have started to settle, Dublin’s average latte price hasn’t moved in two consecutive quarters.

That suggests businesses have very little room to reduce prices, even where some input costs begin to ease.

The US: The Quarter’s Biggest Surprise

If there was one unexpected development in Q2, it came from across the Atlantic.

New York fell from €5.60 to €5.03, while San Francisco dropped from €5.00 to €4.51.

Importantly, those reductions are reflected in both euro and local currency, suggesting the movement isn’t simply the result of exchange rate fluctuations.

Before we all start booking flights for cheaper coffee, however, it’s worth exercising a little caution.

The Latte Index uses platform-based pricing, meaning quarter-on-quarter movements can sometimes reflect individual store pricing, promotional activity or platform dynamics rather than a structural shift across the wider market.

In other words, it’s an interesting signal – not yet a trend.

Local Costs Are Now Driving Prices

One of the clearest themes emerging from the Latte Index is that local operating costs now matter more than global coffee prices.

The disruption to coffee supply chains in Brazil and Vietnam pushed wholesale prices sharply higher over the past two years. Those increases have now largely worked their way through to consumers.

Today, the bigger challenge isn’t the coffee.

It’s everything that comes with serving it.

• Payroll.
• Rent.
• Energy.
• Insurance.

For many café owners, coffee beans have stopped being the biggest headache.

Everything else has politely stepped in to take their place.

That’s why cities such as Dublin and Berlin remain unchanged, London continues to edge upwards and Tokyo remains structurally cheaper thanks to its different labour and occupancy costs.

What This Means for Irish Businesses

While the Latte Index is intentionally light-hearted, the economic message behind it is serious.

The pressures facing cafés mirror those facing thousands of Irish businesses.

• Higher employment costs.
• Increasing commercial rents.
• Rising insurance premiums.
• Persistent operating expenses.

Many businesses are no longer increasing prices because costs are accelerating.

They’re maintaining prices because costs remain stubbornly high.

The result is a pricing environment where today’s “expensive” has quietly become tomorrow’s normal.

Consumers may not like paying over €5 for a coffee – but increasingly, they’re accepting it.

The real question is how long that acceptance lasts.

Looking Ahead

We’ll continue publishing the Fitzgerald Power Latte Index every quarter to see whether this pattern changes.

• Will easing commodity prices eventually find their way to consumers?
• Will businesses finally get some breathing room on operating costs?
• Or will today’s prices become the new benchmark?

We’ll be watching closely.

Because sometimes the clearest insight into the economy isn’t hidden in a 200-page report.

Sometimes it’s sitting in a cardboard cup beside your laptop.

The post The Latte Index: Q2 2026 Snapshot appeared first on Fitzgerald Power.

Let’s just say what everyone’s thinking. Changing accountant probably sits somewhere between cleaning out the shed and cancelling that subscription you forgot you had! In other words… It’s on the list, but it never quite makes it to the top.

The good news? Switching accountant is a lot easier than most people think. In fact, we handle most of the work for you.

Book A Discovery Call HERE

 

Do any of these sound familiar?

• You only hear from your accountant once a year.
• You have questions but don’t know who to ask.
• Your accounts are historical, not helpful.
• Tax deadlines arrive as an unpleasant surprise.
• You feel like you’re getting compliance, but not advice.
• You’re growing but your accountant hasn’t grown with you.

If you found yourself nodding along to any of the above, it might be time for a different conversation.

 

Switching Is Simple

No drama. No disruption. No form-filling marathon.

Why Businesses Make The Move .

Most businesses don’t switch because something has gone wrong.

They switch because they want:

✔ Better visibility.

✔ More proactive advice.

✔ Faster responses.

✔ A trusted sounding board.

✔ A partner that helps them plan for the future.

The post Switching accountants is easier than you think appeared first on Fitzgerald Power.

While the change is positive news, it also requires careful planning. Businesses will need to ensure their systems, pricing and cash flow forecasts are updated ahead of the implementation date to avoid unnecessary issues.

Here’s what you need to know.

Which Businesses Are Affected?

The reduced 9% VAT rate applies to most food and certain drinks sold by:

• Restaurants
• Cafés
• Hotels
• Bars
• Takeaways
• Other catering businesses

However, not everything qualifies.

Soft drinks and alcoholic beverages will continue to attract the standard 23% VAT rate, while accommodation services and admissions to tourist attractions remain outside the scope of this change.

Understanding which products qualify is essential to ensure VAT is applied correctly from 1 July.

Review Your Systems Before 1 July

One of the most important steps businesses can take is to review their Point-of-Sale (POS) and accounting systems.

Businesses should ensure:

• Qualifying products are updated to the new 9% VAT rate.
• Non-qualifying products remain at the correct VAT rate.
• Accounting software reflects the changes.
• Menus, price lists and online ordering systems are updated where necessary.

Applying the incorrect VAT rate could result in unnecessary Revenue queries, penalties or unexpected tax liabilities.

Pricing Decisions: Pass It On or Protect Margin?

The VAT reduction also presents an important commercial decision.

Businesses must decide whether to:

• Pass the full VAT saving on to customers through lower prices.
• Retain some or all of the saving to help offset rising operating costs.
• Take a balanced approach that supports both competitiveness and profitability.

With continued pressure from wage inflation, energy costs and supplier increases, many businesses may see this as an opportunity to strengthen margins.

However, it’s important to consider customer perception. If prices remain unchanged despite the reduction in VAT, businesses should be prepared to clearly communicate the wider cost pressures they continue to face.

Don’t Overlook Cash Flow

Although a lower VAT rate means less VAT is ultimately paid to Revenue, it can also affect working capital.

Many businesses naturally benefit from the timing difference between collecting VAT from customers and remitting it to Revenue. With less VAT collected, there may be less cash available in the short term.

This makes accurate cash flow forecasting even more important.

Now is a good time to review your cash flow projections and ensure your business has the right financial information to support day-to-day decision making.

More Than a Tax Change

The reintroduction of the 9% VAT rate was a commitment under the current Programme for Government and is intended to provide meaningful support to Ireland’s hospitality sector.

For individual businesses, however, the impact will depend on how well they prepare.

Those who review their systems, pricing strategy and financial forecasts now will be best placed to take advantage of the change while avoiding unnecessary disruption.

How Fitzgerald Power Can Help

Our Tax team works with hospitality businesses across Ireland to ensure they remain compliant while making commercially informed decisions.

If you’d like advice on how the VAT changes could affect your business, or support in preparing for the 1 July implementation date, we’d be delighted to help.

Get in touch with Jennifer Power or a member of our Tax team to discuss your business.

The post VAT Reduced to 9%: What Irish Businesses Need to Know appeared first on Fitzgerald Power.

Almost every SME out there knows a few things to be true: that being stretched too thin is their day-to-day, that the idea of reviewing retail pricing feels like a mammoth task, and that there simply aren’t enough hours in the day. But, as an organisation that regularly conducts valuations, we’ve seen first-hand how re-evaluating one’s retail structure can be a game-changer in order to foster long-term, sustainable growth. Even small, well-informed pricing adjustments particularly across OTC and front-of-shop (FOS) categories can deliver a meaningful impact on profitability without increasing footfall.

Given that the time in which we now live has been marred with economic uncertainty, increased labour costs and a deteriorating geopolitical situation, it’s imperative that business owners become comfortable with adaptation to survive, with pricing strategies, and as such, profitability among the top of that list. Whether that’s value-based pricing, dynamic or competitive is entirely up to you, but what’s not debatable is that this strategy should be regularly reviewed. Here’s why.

Why should I review my retail pricing?

As we are all too aware, Ireland and the UK are currently experiencing a rapidly changing economic environment with high inflation, low unemployment, increasing interest rates and one that is particularly prevalent in the Pharmacy sector, fluctuating supply chain issues. Amongst all of these uncertainties, it’s critical that you remain certain of the things you can control for your business. In this case, pricing.

Irish pharmacies are operating in a uniquely constrained environment:

• Dispensing income is largely controlled through HSE reimbursement structures.
• Wage costs continue to rise in a tight labour market.
• Supplier pricing and margins are under pressure.
• Retail competition, particularly from large chains and online is intensifying.

This means that your controllable margin is increasingly driven by OTC and front-of-shop performance. Yet, this is often the area that receives the least structured pricing attention. If retail pricing is not reviewed regularly, pharmacies risk:

• Eroding margins on high-volume OTC lines.
• Missing opportunities to optimise premium or specialist products.
• Falling out of line with local competitors.
• Undervaluing convenience, service and expertise.

Where Should You Focus? (OTC & Front of Shop)

Unlike prescription items, where pricing is often fixed or restricted, OTC and FOS categories give you real commercial control.

These include:

• Vitamins & supplements.
• Skincare & beauty.
• Pain relief & seasonal products.
• Baby care.
• Wellness products.
• Gifts and discretionary retail.

This is where pricing strategy can and should be actively managed. Some key considerations when you are reviewing are:

• Are you pricing premium brands appropriately, or undercharging?
• Are known-value items (e.g. paracetamol) aligned with local competitors?
• Are you protecting margin on convenience purchases?
• Are slow-moving lines priced correctly to clear?

Many pharmacies default to supplier RRP but this often leaves margin on the table or creates inconsistencies across categories.

How often should I review?

Prices should be reviewed regularly, particularly in light of changing OTC / FOC cost prices which impact the retail price and the retail margin. We would suggest:

• Quarterly reviews of key OTC/FOS categories.
• More frequent reviews (monthly) on high-volume or seasonal lines.

Immediate review where:

• Supplier costs change.
• A competitor opens or adjusts pricing.
• Sales patterns shift significantly.

Staying informed about economic trends, as well as the needs of your consumers will also allow you to make informed decisions when price reviewing. Moreover, you can minimise risks and maintain a competitive advantage by proactively managing pricing in response to economic shifts.

How Do You Decide What to Charge?

Effective pricing isn’t guesswork it’s a combination of data, positioning and local knowledge.

Start with:

1. Know Your Numbers

• Understand your gross margin by category, not just overall.
• Identify your top 50–100 selling OTC products.
• Analyse what’s driving profit, not just volume.

2. Benchmark Locally

• What are nearby pharmacies charging?
• Where are you positioned — value, mid-market or premium?

Fitzgerald Power can help you here as we provide a benchmarking service.

3. Segment Your Products

• Not all products should be priced the same way.
• Known-value items → stay competitive.
• Specialist / premium products → price for value, not cost.
• Impulse / convenience items → protect margin.

4. Understand Your Customer

Your customers aren’t just buying products — they’re buying:

• Trust.
• Advice.
• Convenience.
• Accessibility.

That gives you more pricing power than you might think, particularly in community pharmacy.

How Do You Communicate Price Changes?

Price sensitivity is real but so is customer understanding.

The key is clear and confident communication:

• Be transparent where appropriate (especially for services).
• Ensure pricing is consistent and logical across categories.
• Avoid frequent erratic changes, aim for structured adjustments.

Customers are far more accepting of pricing when it feels considered and fair.

How Fitzgerald Power Can Help

Pharmacy is at the core of what we do. We work with pharmacy owners across Ireland to:

• Review and optimise retail pricing structures.
• Analyse margins across OTC and front-of-shop categories.
• Support financial strategy and profitability planning.
• Prepare businesses for growth, succession or sale.

As Ireland’s leading advisor to the community pharmacy sector, we combine deep sector knowledge with practical, commercial insight. Learn more and get in touch HERE.

The post Pharmacy Pricing Strategy: Protecting Margin & Profitability appeared first on Fitzgerald Power.

At first glance, the price of a coffee might seem trivial. But when tracked consistently across global cities, it becomes a useful and relatable indicator of discretionary spending and cost-of-living pressures.

Introducing the Latte Index: Fitzgerald Power’s quarterly snapshot of the price of a standard Starbucks latte across key international cities, converted into euro using ECB exchange rates.

While simple in concept, the index offers a lens into broader economic dynamics: wage levels, rent pressures, currency movements, and, importantly, consumer tolerance for rising prices.

Q1 2026 Snapshot

In Q1 2026, London ranks as the most expensive city for a latte at €5.93, followed closely by Dublin (€5.65) and New York (€5.60). At the other end of the spectrum, Tokyo remains significantly more affordable at €3.48.

This spread highlights more than just pricing differences, it reflects structural cost variations across economies.

Dublin: Converging with High-Cost Cities

Dublin’s position is particularly notable.

Despite being a smaller market than London or New York, Dublin’s latte price sits firmly within the top tier. This suggests that cost pressures in the Irish economy are aligning with those seen in larger global cities.

Key drivers include:

• Persistently high commercial rents
• Rising wage expectations in hospitality
• Strong urban demand supporting premium pricing

In effect, Dublin is behaving like a high-cost global city — without necessarily having the same scale advantages.

The Role of Currency and Local Cost Structures

Currency movements also play a role.

For example, New York appears marginally cheaper than Dublin in euro terms, partly due to exchange rate effects. However, underlying local costs, particularly labour, remain high.

Similarly, Tokyo’s lower price point reflects both a weaker yen and a fundamentally different cost structure, where wages and rents remain comparatively subdued.

Consumer Behaviour: A Tipping Point?

Perhaps the most important insight from the Latte Index is not the price itself, but what it signals about consumer behaviour.

Across many developed economies, consumers have absorbed sustained increases in everyday costs — from coffee to energy. However, there are signs that this tolerance is being tested.

Recent protests linked to rising living costs and energy prices highlight a growing sensitivity to affordability. While a latte is a small discretionary purchase, it sits within a broader basket of spending that households are increasingly scrutinising.

The question is no longer whether prices can rise, but how far they can rise before behaviour changes.

Why It Matters

The Latte Index is not intended to be a definitive economic measure. Rather, it complements traditional indicators by grounding macroeconomic trends in something tangible and widely understood.

It provides:

• A relatable benchmark for discretionary spending.
• A comparative view across international markets.
• An early signal of pressure points in consumer affordability.

Looking Ahead

Fitzgerald Power will track the Latte Index on a quarterly basis, building a clearer picture of how consumer prices evolve over time — and what that means for businesses operating in Ireland and beyond.

Because sometimes, the most meaningful economic insights aren’t found in complex models…

…but in the price of your morning coffee.

The post The Latte Index Q1 2026: What a Coffee Tells Us About the Global Economy appeared first on Fitzgerald Power.

The central thesis is very simple. The lives of men have been taken to represent the lives of humans overall and as a result most of recorded human history is one large data gap. When it comes to the other half of humanity, the silence is often deafening. This absence of data – the failure to count, measure, and analyse the female experience – is what Perez calls the gender data gap.

If you want to understand inequality in modern society, you could do worse than starting here.

I have three smart, thoughtful children – two daughters and a son. And like most parents, I hope they all get the chance to reach their potential

But it seems unfair to think that the world is likely to provide my son with unfettered access to opportunity because he is a white male, while my daughters may have to fight for their place in it. Yet the data suggests precisely that.

Here are a few takeaways that struck me.

The Male Default

Women make up half the population, yet the female perspective is routinely treated as niche. The “default human” across medicine, economics, urban planning and technology is male – often white and middle-class. Everything else is a deviation.

The inequalities that result are not always the product of malice. Or as Perez puts it; “One of the most important things to say about the gender data gap is that it is not generally malicious, or even deliberate. Quite the opposite. It is simply the product of a way of thinking that has been around for millennia and is therefore a kind of not thinking. A double not thinking, even: men go without saying, and women don’t get said at all. Because when we say human, on the whole, we mean man.”

She cites an example where Google’s image-recognition software labelled a portly, balding, middle-aged man standing in front of a kitchen stove as “female”. Kitchens, it would seem, are a more powerful indication of gender than male-pattern baldness.

When the data is skewed, so are the conclusions.

Equality Is an Economic Issue

We often frame gender equality as a moral issue. Which it is, but it is also an economic problem.

When half the population is underrepresented in decision-making, the resulting policies, products and processes are less efficient. Markets are misread, talent is misallocated, and productivity is constrained.

Women do the vast majority of unpaid work globally – childcare, eldercare, housework. Much of the value that this work creates is invisible. But it has a value.

We tend to value what we can measure. It’s just easier.

But here’s one we can definitely measure. Women are more likely to have career breaks, so their chronological age is often older than their academic or professional age. Promotion systems and tenure clocks often fail to account for this. And that’s before you start to consider how difficult it is to re-enter the workforce after a sustained absence.

Representation Matters

In politics, balanced representation leads to more balanced legislation. When women enter legislatures in meaningful numbers, policy priorities shift – often towards health, education and social welfare.

The use of all-women shortlists by the UK Labour Party dramatically increased the number of female MPs over time. Representation changed because the mechanism for selecting candidates changed.

Contrast this approach with commentary during the 2016 US presidential election campaign where some voters suggested that Hillary Clinton was too ambitious. Running for the most powerful political office in the world undoubtedly requires ambition. Yet a reality television star with no political experience wasn’t criticised for the same trait. The difference was not ambition it was social norm violation. We associate leadership with men, and through this lens Trump was a better fit. Although history is unlikely to record it as such.

Closing the Gap

Perez’s solution is to close the representation gap, increase female participation in all spheres of life and collect gender-disaggregated data. Then analyse the data and act on it.

As more women move into positions of influence, different questions get asked. Gaps in previously held universal truths are exposed, and new ways of thinking are developed.

Sigmund Freud once posed a riddle about femininity.

“The great question,” he said, “that has never been answered, and which I have not been able to answer, despite my thirty years of research into the feminine soul is: What does a woman want?”

The answer, as Perez points out, was staring us in the face all along.

All “people” had to do was ask women.

The post Half the population, half the data? Understanding the Gender Data Gap appeared first on Fitzgerald Power.

Think like a buyer.

A successful sale requires an understanding of both the seller’s and the buyer’s perspectives. If a pharmacy is not an attractive proposition to a purchaser, it simply will not sell – or it will sell at a discount.

Selling a pharmacy is not unlike retailing itself. Customers do not buy faulty or poorly presented products. Similarly, buyers will not pay a premium for a business that is inefficient, opaque, or overly dependent on its owner. The critical question every seller should ask is:

• How can my pharmacy be best packaged for sale?
• How pharmacies are valued.

Most pharmacy transactions are valued using an earnings-based approach, typically applying a multiple to maintainable EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation). EBITDA is effectively a measure of the business’s pre-tax cash-generating ability before financing costs.

It is important to note that historical or current EBITDA may not reflect the true value of the business. Buyers are purchasing future income, not past performance. As a result, normalising profits and identifying sustainable earnings is critical.

In the current market, EBITDA multiples in the range of 4 to 6 times are common. The multiple achieved will depend largely on factors such as:

• Scale of the business.
• Geographic location.
• Quality and sustainability of earnings.
• Strength of systems and processes.
• The final valuation step involves adjusting for assets and liabilities, including stock, debt, and working capital.

Understanding how your pharmacy is valued allows you to actively influence that outcome.

The three key drivers of value.

While pharmacy businesses are complex, valuation ultimately comes back to three core drivers:

• Turnover.
• Gross profit margin.
• Overhead control.

Improving performance in each area strengthens EBITDA and, in turn, the valuation.

1. Driving turnover

Increasing turnover is often the most challenging lever, particularly when the majority of the business’ income stream is set by the State  and there is continual pressure on discretionary consumer spending. However, opportunities still exist.

Consider the following:

• Maximise claim accuracy: Most pharmacies already have the systems in place. Reviewing rejected prescription claims and tightening processes can recover income that is already earned but not collected.
• Monitor competition: Customer loyalty should never be taken for granted. Today’s consumer is well-informed and value-driven.
• Optimise front-of-shop performance: Every square inch must earn its keep. Replace stagnant product lines, trial new offerings, and make swift decisions where performance disappoints.

In many cases, protecting turnover can be just as valuable as growing it.

2. Improving gross profit margin

• Gross margin is often the most impactful and controllable driver of profitability.
• Review purchasing arrangements regularly and negotiate assertively with suppliers.
• Consider joining or leveraging buying groups to improve terms.
• Some pharmacies benefit from assigning responsibility or even a dedicated role to sourcing discounts and monitoring supplier pricing.
• Small improvements in margin can translate into disproportionately large increases in EBITDA.

3. Controlling overheads

• Overhead management is critical, particularly in two key areas: wages and rent.
• Benchmark labour costs against sector norms and review dispensing processes. Variations in the cost of dispensing between pharmacies can be significant.
• Ensure staffing levels and skill mix align with workflow efficiency.
• Review occupancy costs regularly and understand how they compare to industry standards.
• Consistent discipline in overhead control strengthens profitability and reduces buyer risk.

Tax planning: act early or pay the price.

After years of effort spent building and improving a pharmacy business, it is remarkable how often tax planning is left until the final stages of a sale. In our experience, this is where significant value can be unintentionally lost.

A pharmacy may be trading well and operationally ready for sale, yet still be structurally unprepared for a tax-efficient transaction. Issues frequently only come to light late in the process or when a deal is already being negotiated, leaving little or no scope to correct them.

Examples we commonly encounter include substantial cash balances or investment portfolios that have accumulated within the company, uncertainty around share ownership and who is ultimately entitled to the sale proceeds, or complications arising from property ownership, whether the premises are owned personally, held within the company, or owned by a third party. Each of these can materially affect both deal structure and post-tax outcomes if not addressed early.

Effective tax planning requires meaningful lead time to avail of the various reliefs and exemptions available, including entrepreneur and retirement reliefs, participation exemption, and tax-efficient strategies for interim cash extraction. Just as importantly, it allows the overall exit to be designed in a way that aligns the business structure with the owner’s personal objectives.

At Fitzgerald Power, this work is carried out collaboratively. Our Taxation Partner, Brian Kelly, works closely with pharmacy owners and with the corporate finance team to ensure that both the business and the shareholder are properly positioned well in advance of a transaction. As we often say: if you are already at the altar, it is probably too late. Addressing these matters early can materially change not just the tax bill, but the overall success of the sale itself.

Maximising the value of your pharmacy is not about a single change or a last-minute push. It is about consistent improvement, clear planning, and early professional advice. If you would like to explore any of the issues raised in this article, contact Noel Winters, Corporate Finance Partner at Fitzgerald Power, on 051 870152 or visit www.fitzgeraldpower.ie.

The post Maximising the value of your pharmacy when it comes time to sell appeared first on Fitzgerald Power.

The case for data in pharmacy.

Faster, more informed reactions. Data lets you see trends as they’re happening, not weeks or months later, so you can pivot before issues become problems (e.g. a product mix shift, margin compression, or supply disruptions).

1. Benchmarking and comparative insight.

In Ireland, new tools are emerging to allow pharmacies (or stakeholders) to compare prescribing trends across regions and national schemes. For example, the RxTrends platform (developed by RCSI) uses publicly available data from the HSE’s PCRS to visualise prescribing patterns over time, and this offers a glimpse of what is possible when you harness data across multiple units.

2. Guarding margin in tight markets.

Many pharmacies are under pressure from rising costs, labour constraints, and regulatory challenges. Data is your best defence here as it helps you catch margin erosion early, identify underperforming lines, and redirect resources where they yield the best return.

3. Stronger stakeholder communication.

Whether you’re dealing with staff, investors, auditors, or external partners, having objective data builds trust, reduces disputes, and helps align everyone to the same targets.

4. Supporting strategic growth.

Want to expand to a new location? Explore new service lines? You’ll need data-backed forecasts and KPIs to validate your decisions and secure stakeholder buy-in.

Key metrics you should be tracking in a pharmacy.

Below is a shortlist of vital KPIs every pharmacy (or group of pharmacies) should have on its dashboard. These help you assess performance, operations, and growth potential.

*These metrics are not just “nice to have”, they’re essential levers that let you spot friction, allocate resources smarter, and push your business forward.

How to put data to work (without overwhelming yourself).

1. Start small, expand intentionally – Pick 3–5 KPIs to begin. Once you’ve got a reliable tracking process, layer in more.
2. Automate data capturing – Manual spreadsheets drag and are error-prone. Use systems that integrate with your pharmacy software or POS to pull data directly.
3. Set benchmarks and targets – Don’t just report numbers, compare them to goals or industry statistics.
4. Regularly review and act – Weekly or monthly dashboards should lead to action, what to scale, what to pause, what to test.
5. Use visual dashboards – Charts, heatmaps, and traffic-light indicators make insight more digestible for you and your team.
6. Foster a data culture – Everyone from store managers to pharmacists should feel empowered by, not intimidated by, data

Putting it into practice.

Building a culture of data-driven decision making takes time, but the payoff is significant. It can give you greater control, improved profitability, and a clearer understanding of what truly drives your business.

At Fitzgerald Power, we support many pharmacy clients in bringing their data to life through custom dashboards and real-time financial tracking tools, such as Ezora. These systems turn day-to-day business information into meaningful insight, helping owners make confident, evidence-based decisions about their pharmacies. Chat with our pharmacy team today, we’re here to make the numbers and the process add up.

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So, what exactly is benchmarking?

At its simplest, benchmarking means comparing your pharmacy’s key financial and operational metrics, often referred to as Key Performance Indicators (KPIs), with those of similar businesses, sector averages, or best-in-class performers. It’s about gaining perspective: identifying what’s working well and where there’s room to improve.

Why benchmark your financial performance?

1. Performance Comparison.

As with any business, each owner will have their own way of running their business, be it from their purchasing policies to their private sales pricing model. Benchmarking is an invaluable exercise to ensure that the policies being implemented in the pharmacy are achieving the best results. For instance, if you were generating a gross profit margin of say 41%, but the sector average benchmark for pharmacies with a similar profile was 44.50%, then straight away you know that your purchasing policy, sales pricing model or turnover mix requires review.

If your pharmacy achieved the sector average gross profit margin, there would be an additional 3.5% of turnover added to the bottom line of the business. In these challenging times with labour cost inflation and stock acquisition constraints, the additional gross profit margin could help negate these ever-increasing costs.

2. Driving continuous improvement.

Tracking KPIs over time helps you assess whether operational changes are having the desired effect. To garner the most from this approach, I would strongly recommend preparing live monthly management accounts (live meaning accounts prepared within 30 days of the month’s end) Waiting until year-end to review performance makes it harder to identify what’s driving your results in real time.

3. Setting realistic goals.

Using sector benchmarks allows you to set targets grounded in reality, ambitious yet attainable. Unrealistic targets, though they may seem motivating, only lead to feelings of failure and low team morale if not met.

4. Strengthening Accountability.

Whether it’s purchasing or staffing, having transparent performance metrics encourages responsibility and helps keep everyone focused on results.

5. Resource Allocation.

Understanding where your pharmacy is underperforming helps direct resources where they’ll have the most impact. Benchmarking can also help identify risks, justify investment decisions, and build the case for operational change.

6. Increasing your business value.

For owners thinking ahead to succession or sale, benchmarking delivers tangible benefits. Pharmacies that consistently meet or exceed sector averages for key metrics over a three-year period are typically more attractive to buyers and command higher sale prices. Proven, sustained performance reduces perceived risk and smooths the transaction process.

In summary:

Benchmarking isn’t just a numbers exercise, it’s a strategic tool for performance improvement, decision-making, and long-term value creation. Whether you operate a single community pharmacy or manage multiple sites, benchmarking ensures you’re maximising the return on your hard-earned turnover.

At Fitzgerald Power, we offer all clients complimentary access to Ezora, our advanced Pharmacy Sector Benchmarking tool, which provides real-time insights and comparative data to help you stay ahead of the curve.

Whether you are a large pharmacy chain or a small independent community pharmacy, the owner should be benchmarking their KPIs to ensure they are maximising the return on the hard-earned turnover being generated.

Get in touch HERE for more information!

Over the last four decades, we have made a name for ourselves as the largest pharmacy transaction brokerage firm in Ireland. Offering creative solutions, we provide bespoke pharmacy services for businesses of all sizes, from independent single-unit operators to multinational mammoths. As one of the top accounting firms Ireland has to offer, we use our experience and knowledge of the sector to provide our clients with unparalleled pharmacy insights. For more information contact our expert team today!

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