The Irish pharmacy sector continues to demonstrate resilience and steady investment activity, with transaction volumes increasing and buyer confidence strengthening through 2025. This review of pharmacy mergers and acquisitions between 2023 and 2025 provides insight into transaction trends, valuation movements, buyer behaviour and the wider market landscape, while outlining expectations for the year ahead. The findings highlight a sector supported by stable income streams, evolving ownership dynamics and renewed confidence following regulatory developments.

Key highlights:

Transactions

  • An estimated 98 single-unit pharmacy transactions occurred between 2023 and 2025.

  • Transaction analysis focused on individual pharmacies and small groups of up to four locations.

  • Approximately 31 pharmacies were sold in 2025, up from 27 transactions in 2024.

  • Increased activity in Q4 2025 reflected improved confidence following the new Community Pharmacy Agreement.

  • Pharmacies with State dispensing fees above €250K represented the largest share of deals annually.

  • Mid-range transactions (€175K–€249K) declined in 2025, while smaller transactions (below €100K) increased.

  • Growth in smaller sales indicates a broader and more active market environment.

  • Independently owned pharmacies accounted for the majority of transactions.

  • Market consolidation continued as independent pharmacies were more likely to be sold.

  • Corporate group pharmacy sales increased proportionally over the review period.

  • Indigenous group activity fluctuated, while symbol group disposals declined.

Transactions by location:

  • Munster’s share of deal activity rose significantly from 17% to 29%.

  • Connacht/Ulster experienced the largest proportional decline, falling from 23% to 9%.

  • Dublin and Leinster continued to maintain strong transaction activity levels overall.

Valuation Multiples

  • The average valuation multiple across the review period was 4.7x maintainable EBITDA.

  • This represented a slight decrease from the previous rolling average of 4.92x.

  • The decline was primarily driven by an increase in smaller pharmacy transactions rather than weakening demand.

  • Larger pharmacies achieved higher valuation multiples in line with revenue scale.

  • Dublin pharmacies achieved the highest average multiple at 4.99x.

  • Regional valuation averages included:

    • Leinster (excluding Dublin): 4.83x

    • Munster: 4.43x

    • Connacht/Ulster: 4.63x

  • Multiples ranged by turnover:

    • <€1m turnover: 3.53x average

    • €1m–€1.5m: 4.95x

    • €1.5m–€2m: 4.95x

    • >€2m: 5.67x

  • Lower overall averages reflect increased buyer participation in smaller pharmacies, signalling market depth rather than weakness.

Buyers

  • Of 43 analysed transactions:

    • 26 were acquired by independent operators

    • 17 were acquired by pharmacy groups

  • Pharmacy groups were defined as operators holding six or more pharmacies.

  • Transactions involving group buyers achieved slightly higher average multiples (4.84x) compared with independents (4.62x).

  • Groups typically acquired larger pharmacies due to stronger access to capital.

  • Pharmacies with revenues exceeding €2m were primarily purchased by group operators.

  • Independent buyers remain a significant force within the market despite consolidation trends.

The Pharmacy Market

  • The number of community pharmacies fluctuated modestly during the review period.

  • The sector recorded:

    • 67 pharmacy openings

    • 57 closures between Q1 2023 and Q4 2025.

  • Total pharmacy numbers reached 1,916 nationwide by Q4 2025, the highest level during the period.

  • The lowest count occurred in Q1 2025 at 1,903 pharmacies.

  • Growth throughout 2025 indicates improving sector confidence and sustainability.

  • Overall market stability continues to underpin investment activity and lender support.

Outlook for 2026

  • The September 2025 Community Pharmacy Agreement increased State reimbursement fees.

  • Greater earnings visibility has strengthened buyer confidence and supported transaction growth.

  • Market pricing is expected to improve as certainty around future income increases.

  • Phased fee reimbursement changes may reduce payments gradually over time.

  • Irish pillar banks remain supportive lenders due to pharmacies’ predictable income streams.

  • Lending conditions remain conservative, with rigorous due diligence requirements.

  • Buyers are typically expected to contribute at least 30% equity toward acquisitions.

  • Capital requirements present challenges for first-time buyers entering ownership.

  • Partnership structures are becoming more common to facilitate new entrants.

  • Shareholder agreements are increasingly important in managing partnership arrangements.

  • Intergenerational funding support is emerging to sustain independent ownership.

  • Strong transaction volumes are expected to continue into 2026.

  • Increased Capital Gains Tax Entrepreneurial Relief thresholds (€1.5m) may encourage delayed exits among pharmacy owners.

  • Increased pharmacist supply is expected to further support sector growth.

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