As a pharmacist contemplating your next life stage, imagine yourself lounging on a beach with the sun warming your skin as you sip a cold drink.
Regina-based MLT Aikins partner and transactional lawyer Ahmed Malik recently had a conversation with the Pharmacy Edge podcast that touched on this beach scenario. Here are some key takeaways from that conversation.
The importance of legal counsel: Engaging a lawyer early in the process of buying or selling a pharmacy is crucial. Lawyers help navigate the complexities of these transactions and ensure that all legal and tax implications are considered.
Role of transactional lawyers: Transactional lawyers assist with all stages of a pharmacy sale – from planning to completion. They work closely with clients to understand their objectives and ensure the deal is structured in an optimal way.
Deal structure: The structure of a deal depends on multiple factors, including the client’s needs, tax considerations and the buyer’s preferences. The seller’s level of involvement after the sale can be a key element. Share sale transactions are often preferred by sellers for tax flexibility purposes.
Early legal involvement: Involving a lawyer early in the process helps in better planning and structuring of the deal – leading to a more favorable outcome for the client.
Unique considerations: Since pharmacies are regulated in Canada, and pharmacists are a regulated profession, there are specific legal requirements that must be met during transactions. Lawyers confirm compliance with these regulations. In addition, pharmacies may also have a retail component or be subject to a banner agreement. Each of these require specific considerations that a lawyer can help to navigate during the deal.
Comprehensive planning: Beyond price and closing dates, many components need attention in a transaction, such as regulatory compliance, tax planning, employment and the specific terms of the sale agreement.
Key takeaway
Communication is key. A good transaction lawyer ensures that they understand the client’s needs and keep these needs front and centre throughout the deal, as well as communicating regularly with the client. At the same time, clients should also express any concerns or key objectives they would like addressed so that these are communicated to the lawyer to follow through.
These points highlight the critical role of legal counsel in supporting smooth and legally sound pharmacy sale transactions.
Here’s a link to the full podcast: The importance of legal counsel: protecting your investment in pharmacy acquisition
Podcast description: Tune in to the Pharmacy Edge Podcast as host Matt Hodgson delves into the vital topic of legal counsel in pharmacy acquisitions. Joined by Ahmed Malik, a partner and corporate commercial lawyer at MLT Aikins LLP in Regina, this episode explores the intricacies of protecting your investment in pharmacy acquisitions. Gain valuable insights into the role of transaction lawyers, structuring deals, navigating legal considerations in the Canadian retail pharmacy industry and much more.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.