Irish Pharmacy Sector M&A Review 2024 – White PaperWelcome to our review of the Irish Pharmacy Sector M&A for 2024. This report highlights the key findings from the comprehensive white paper prepared by Fitzgerald Power, offering insights into the sector’s transactions, valuations, market dynamics, and labour considerations.Download the white paper.White Paper OverviewOverview of Transactions.97 single-unit pharmacy sales took place from Q1 2022 to Q4 2024, with 44 transactions (45%) advised by Fitzgerald Power.Dublin and Munster accounted for most deals (31% and 29% respectively), while Leinster (excluding Dublin) saw 23% and Connacht/Ulster 17%.The majority of transactions involved independently owned pharmacies, with an increasing number of symbol group pharmacies being sold.Valuation Multiples.The average valuation multiple achieved was 4.91x EBITDA, up from 4.78x in 2023.Multiples increased for pharmacies with revenues between €1M – €2M, but declined for those above €2M due to reduced acquisition activity by corporate groups.The average deal completion time was 7 months.Buyers.Of the 44 transactions, 27 were acquired by independent operators, while 17 were purchased by groups (6+ pharmacies).The average valuation multiple for independent buyers was 4.81x, whereas group acquisitions achieved a higher multiple of 5.06x.Large pharmacy groups acquired 6 out of 10 pharmacies with revenues exceeding €2M.The Pharmacy Market.The total number of community pharmacies in Ireland remained stable at 1,906 in 2024.67 new pharmacies opened, while 62 closed between Q1 2022 and Q4 2024.First-time buyers face funding challenges, leading to an increase in hybrid deal structures like Management Buy-Ins and investor partnerships.Demographics.Leinster (including Dublin) houses 52.57% of all pharmacies (Dublin: 26.02%, Rest of Leinster: 26.55%).Pharmacy numbers grew by 9.41% from 2013 to 2024, aligning with a 12.22% national population increase.Funding The Gap.Banks finance about 70% of pharmacy purchases, leaving buyers to cover 30% plus additional costs (legal, stamp duty, etc.).Events like the Future Pharmacist Summit hosted by Fitzgerald Power, and publications such as our Quarterly Pulse Reports, aim to educate buyers on financing and acquisition trends.Outlook For 2025.Inflation has decreased to 1.5% (down from 10% in 2022), improving economic conditions.Pharmacy M&A activity is expected to rise, with corporate groups re-entering the market after a consolidation period.Hybrid deal structures will continue to facilitate first-time buyers entering the market.Read the full white paper here for more in-depth insights and analysis.Our team is dedicated to providing you and your business with the absolute best financial advice out there. We approach each and every case from a fresh perspective, working with you to find tailored solutions that leave your business feeling stronger than ever. With our expert analysis, we translate figures into a language you can understand. Using timely, reliable advice, our experienced team of experts devise sophisticated plans to encourage cost efficiency and growth. If you would like to discuss this research, contact our team at Fitzgerald Power today.Further Articles Pharmacy Pulse Report Q2 2024Analysis of the key trends in the Irish Community Pharmacy sector, prepared by Fitzgerald Power on a quarterly basis. Read Blog Pharmacy Pulse Report Q3 2024Analysis of the key trends in the Irish Community Pharmacy sector, prepared by Fitzgerald Power on a quarterly basis. Read Blog
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