For many pharmacy owners, succession is not just a commercial decision; it’s personal.
Many senior partners have spent decades building their pharmacy, investing time, reputation and money to support their family and community. When a child studies pharmacy and wants to join, it often seems like the perfect way to keep the family legacy alive.
But what if another pharmacist, such as a long-term employee or junior partner, is also hoping for an opportunity to become an owner?
This is where family dynamics and business realities come together, making careful planning and clear communication essential.
Succession to the next generation can look simple on paper. The child is qualified, knows the business culture and shares the family vision. For many owners, it feels like a natural next step.
However, pharmacy is rarely a solo enterprise. There may already be:
- A co-owner or partner with expectations of their own
- A long-serving manager who has been informally ‘lined up’ as the next partner
- A structured partnership agreement with defined entry and exit pathways.
Bringing a family member into the business can create uncertainty, feelings of favouritism and unexpected conflict.
In family businesses, the biggest risk is often not financial but relational. If succession is handled poorly, it can harm partnerships, split families and weaken team culture.
One of the most important things you can do is be clear about your intentions.
If you plan for your child to take over in the future, share this openly and thoughtfully, especially if other pharmacists see themselves as future partners.
Avoiding the conversation to keep your options open can lead to misunderstandings. It may also cause another pharmacist to invest time, energy or money in a future that may never eventuate.
Clear communication doesn’t mean you have to decide right away. It means being honest about what you’re considering and what will affect your decision.
The family element
Family businesses often struggle to balance opportunity and entitlement. In pharmacies, this can raise questions like:
- Will your child need to meet specific performance or leadership criteria before becoming an owner?
- Will they buy in on the same commercial terms as any other partner?
- How will their remuneration and responsibilities be determined prior to ownership?
Setting clear, objective criteria protects both the business and the family. It makes sure ownership changes are based on ability and contribution, not just family ties.
It is not uncommon for family groups to encourage emerging family members to work in different environments and broaden their experience before being offered a senior role or equity in the family business. This can bring fresh ideas into the family enterprise while helping the individual build the experience, credibility and perceived worthiness required for the role.
If you’re considering another pharmacist for partnership, the entry criteria should be just as clear and consistent.
Structuring the transition
Succession isn’t a single event. It’s a process.
You will need to consider:
- A staged equity transfer over time
- Minority ownership initially, with performance milestones
- Separate employment agreements and shareholder agreements
- Clear governance structures that define decision-making authority.
It’s also important to think about how this affects current partners. Will their interests be reduced? Does the partnership agreement allow for family succession? Are there funding plans for a buy-in?
These are not just technical details. They influence whether the process feels fair, transparent and trustworthy.
Letting go
Succession planning is not only about preparing the next owner. It is also about preparing the current owner for life after ownership.
Many pharmacy owners have spent decades building their business and being the person everyone turns to for decisions. Stepping back can therefore be one of the most sensitive and challenging parts of the succession process.
A successful transition often requires:
- Clearly defining when decision-making authority will change
- Allowing the incoming owner or next generation to lead
- Establishing an agreed role for the retiring owner, if they will remain involved
- Creating a shared understanding of what “stepping back” means in practice.
Without clear boundaries, the incoming owner may struggle to establish authority, while the outgoing owner may feel disconnected from the business they have built. The best succession plans prepare both generations for change.
Protecting family relationships
Family businesses work in two worlds: the family and the business. What makes sense for one may not work for the other.
As a Family Business Advisor, I’ve seen that the most successful transitions happen when families:
- Separate family discussions from business decisions
- Agree on shared values and long-term vision
- Document expectations clearly
- Involve independent advisers early.
This approach helps families navigate difficult conversations respectfully and in a structured way, reducing the risk of conflict later.
Accommodating family and non-family successors
Sometimes, both a family member and a non-family pharmacist can become owners, particularly in a pharmacy group with several partners, multiple locations or plans for growth.
The key is alignment:
- Does the ownership structure support shared growth?
- Are roles clearly defined?
- Is there a pathway for expansion that accommodates multiple partners?
When growth is limited, difficult decisions may be necessary. Delaying them rarely makes them easier.
Succession in pharmacy is about more than transferring shares. It is also about preserving relationships, protecting the pharmacy’s reputation and ensuring the community continues to receive quality care.
When agreement cannot be reached
Even with thoughtful planning and open communication, there may be times when the family, existing owners and intended successors cannot agree on a workable path forward.
In that situation, continuing at all costs is not always the kindest or most responsible option. An orderly exit, buy-out or sale of the pharmacy may provide clarity, protect the value of the business and, importantly, give family relationships the best chance of surviving beyond the business.
That outcome can feel disappointing, particularly when the original hope was to keep the pharmacy in the family. However, choosing a respectful and commercially sound separation is not a failure. Sometimes, it is the decision that best protects the people involved.
If you are considering bringing the next generation into your pharmacy, particularly where there are existing or prospective partners, start planning early and create space for honest conversations.
Managed well, succession can preserve the legacy of the pharmacy, strengthen the business and protect the relationships that matter most. Managed poorly, it can place lasting strain on everyone involved.
If this situation sounds familiar, now may be the right time to step back and develop a clear succession plan that balances commercial fairness with family values. Get in touch.
About the author
Krista Fenix is an Associate Director at Holman Hodge. She works with numerous pharmacies and has built a close affinity with retail and hospitality clients too. Personal experience working in a multigenerational family business, as well as being an Accredited Family Business Advisor, brings a valued perspective to pharmacy clients, particularly those entering or exiting an ownership group.