Mar 2017 3 Minutes
A Walker Wayland Success Story
We were instructed by Westpac to conduct a valuation on seven pharmacies owned by Paul Halabi and Joe Amerena. We receive these instructions on a regular basis, as Walker Wayland Health is accredited by the major banks to perform business valuations for security lending purposes.
Out of the seven pharmacies that Paul and Joe own, three are located in suburban Melbourne, whilst four are located within regional Victoria.
During the course of the valuations a good relationship was quickly established between Paul, Joe and our Managing Director, Joe Lamhut. Upon completion of the valuations it became apparent that whilst each of the pharmacies was individually successful, there were a lot of improvements that could (and should) be made.
With each pharmacy being individually successful, what more could be done?
The businesses were all running separately from each other, so there was no uniformity of any of the business operations, meaning that they had to manage SEVEN businesses separately. This was a huge undertaking and was creating additional work that could have been streamlined. Also, reporting was minimal with very little analysis of ratios, business drivers or KPIs.
Paul and Joe soon realised that we could provide more than just a valuation service and that our expertise in pharmacy was the strength they needed to make their businesses fly.
The next step in our journey with Paul and Joe was putting a consultancy agreement in place and developing, then agreeing upon an action plan.
The action plan in its simplest form was:
- Determining Joe and Paul’s business objectives,
- Putting a plan in place to achieve said business objectives,
- Establish KPI’s for each pharmacy, and key staff,
- Establish a reporting system for each pharmacy
- Establish cashflow reporting
- Establish a centralised administration centre; appoint a general manager to oversee group operations.
What all of these action points lead to, was enabling Paul and Joe to spend more time working ‘on’ their business and less time working ‘in’ their business.
We then set about ticking off our action list which resulted in Paul and Joe creating the Australian Health Services (AHS) banner which operates seven pharmacies, including their most recent acquisition, a compounding pharmacy in Coburg. Plans are also progressing for new fitouts and expansion of some sites.
With all the action points ticked off and to keep things running smoothly, we now have the following in place to ensure targets are being met and that all key members are accountable:
- Monitoring of trading results and KPIs on a monthly basis,
- Joe Lamhut visits Melbourne on a quarterly basis to conduct a strategy meeting, review quarterly results and update pharmacy valuations.
Walker Wayland Health is proud to have been part of the success and growth of AHS.
If you would like to get in contact with Paul for a personal description of how we helped AHS, then please contact our office on (08) 9364 9988 and we will get you in touch with him.