Not Even Thinking of Selling Your Independent Pawn Business? Think Again.

June 27, 2012 by

The current market is screaming for owners of independent pawn shops to take advantage of the unique opportunities before them.  These unique opportunities include:

1. the ability to take advantage of the need major pawn companies currently have to gain a larger presence in the market than their competitors,
2. the ability to leverage future earning potential during negotiations with major pawn companies in order to achieve top dollar for independent pawn businesses,
3. the high price of gold and the positive impact it is having on loan balances, and
4. advantages that the Bush-era tax cuts currently allot small business owners (which may end come Jan. 1, 2013).

You don’t have to exit the pawn business entirely to take advantage of the opportunities that are available to independent pawn shop owners right now.  You can use the capital you gain as a result of the sale of your current business to reorganize your capital structure and reposition yourself in the market and potentially do better in the business than you’ve ever done before.

The Stallcup Group team specializes in more than simply getting pawn shop owners top dollar for their businesses.  We specialize in managing negotiations and agreements with major pawn companies in order to ensure that pawn shop owners will be able to meet their future goals.

For example, if you want to reposition yourself to begin a new pawn business in the same geographical area within a relatively short timeframe, Stallcup Group will help achieve a non-compete agreement with the major pawn company that purchases your business that will allow you to reenter the market and get back in business in your preferred geographical area as soon as possible.  In order to do this, we point to the true value of your business, which we are able to uncover through high-level financial and asset-related analyses.

When the market shifts—and it will shift—independent pawn shop owners will not be able to achieve the high selling prices and lenient agreements that they may be able to achieve now with the help of Stallcup Group’s professional exit strategy services.

If you’re uncertain as to whether or not now is the time to sell, contact Stallcup Group.  We will be glad to discuss your goals for the future and provide you with a free consultation.

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Your Pawn Shop May be More Valuable Now Than Ever

April 11, 2012 by

According to the National Mining Association, gold was discovered in America in North Carolina in the early 1800s. However, it wouldn’t be until 1848 when gold was discovered in Sacramento that the California Gold Rush would begin and transform our country into a gold-obsessed nation forever.

While gold prices shift daily in accordance with the economy and a variety of other factors, one thing history has taught us is that gold manages to retain its value.

Your pawn shop, however, may not.

A pawn shop’s value is impacted by the price of gold, of course, but there are many other factors that dictate what a pawn shop is worth and what it will be worth at a later date. Unlike gold, which has risen in price consistently for the past decade or more, your pawn shop’s value may be higher now than it was 10 years ago—and much higher than it will be 10 years from now.

If you’re considering selling your pawn shop, you need to be aware that there is a window of opportunity open to sellers now that may not be open later on. Today’s pawn shop sellers are in an excellent position. Because the major pawn companies are actively competing to make as many acquisitions as possible in order to beat out the competition and come out on top, owners of individual shops or groups of shops have a reasonable amount of leverage even before they make a thorough assessment of what their business is worth.

Many of the most valuable pawn shops and groups of pawn shops have been scooped up. This has left fewer independently owned shops for the major pawn companies to fight over. While the need for new acquisitions is still great right now, as time goes on and more shops are acquired, it will become more difficult for individual pawn shop owners to find multiple buyers and sell their businesses at competitive prices.

The bottom line is that now is a great time for independent pawn shop owners to sell. Windows of opportunity like the one that is open now don’t come along every day. Unlike gold, your business may not retain its value. If you’re on the fence about selling, share your concerns with Stallcup Group. By taking into account the unique characteristics of your shop or shops, we can help you determine whether or not it is truly in your best interest to move forward with the sale of your business.

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