A highly regulated market with evolving business models
Our client is a Private Equity fund considering investing in a network of retail pharmacies
Our client had concerns about the regulation as the regulatory framework of pharmacies (status & ownership, monopoly and type of products allowed) is stringent and specific to the French market
Our client was also wondering about the key success factors for a network to recruit new pharmacies and how the Target was positioned
Assessing the ability of the target to differentiate and grow
We performed several interviews with pharmacists to identify their key selection criteria when integrating a purchasing network (i.e: level of rebates and commercial agreements, values, services, contract duration…)
During interviews with pharmacists and competing networks, we also assessed the positioning and strengths of the Target
We also modelled the development potential of the Target by evaluating the number of pharmacies that could be recruited, churn rate and average revenues & profitability generated by pharmacy
A successful investment
Our analyses enabled our client to assess the feasibility of the Business Plan provided by the Target and estimate a relevant valuation
Our client was successful in investing in the pharmacy network
The pharmacy network is currently undergoing a strong growth in recruiting new pharmacists and increasing its consolidated revenues
