Case studies - 17 October 2019

Due diligence of a pharmacy chain

The operator of one of the largest pharmacy chains in Poland was considering the acquisition of other entities. 

Objectives of project

The task of PMR consultants was to carry out a due diligence of a pharmacy chain in order to investigate companies selected for acquisition and to identify the risks associated with this project.

Project details

The goal of this project was to conduct an examination of the company our client was interested in. The analysis took into account key aspects of the pharmaceutical business and included operations, finances and taxes.


  • Operations analysis, including: distribution of revenues with regard to the location of individual pharmacies, sales taking into account seasonality, average shopping cart value, stock and inventory rotation, analysis of co-operation with suppliers, parallel trade.
  • EBITDA normalisation and testing whether it is possible to repeat past results in subsequent accounting periods.
  • Assessment of the quality of customer service, including: product arrangement in pharmacies, order and cleanliness in pharmacies, sales skills of employees.
  • Identification of potential risks and determining their potential impact on the result of the transactions in the areas of VAT, corporate income tax, and tax on civil law transactions (PCC), transfer pricing, retrospective bonuses and social security costs.
Project results

PMR consultants delivered important information affecting the course and scope of the planned investment:


  • list of areas of risks associated with the transaction,
  • analysis of the impact of each risk area on the course and result of the acquisition,
  • solutions for minimising the impact of a number of the identified risks on the planned project.
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Paweł Olszynka

ICT Business Unit Director