Though the market is ripe for independent pawn shop owners to sell their businesses at top dollar, the majority of pawn shop owners are still selling at prices that don’t reflect the true values of their businesses.
Why is this?
Most of the time, the bottom-line reason a pawn shop isn’t sold at a price that reflects its true value is that the potential buyers were presented with incomplete or ineffective data.
When potential buyers aren’t supplied with the right data, or aren’t presented with the right data in a way that makes a pawn shop’s tangible and intangible assets clear, it becomes easy for them to point at potential risks, real or imagined, and use those risks to drive down the selling price.
Pawn shops are already considered high-risk business ventures. If you’re trying to sell a pawn shop, you need to be able to show potential buyers why your pawn shop is a comparatively low-risk investment by benchmarking its assets against the assets of national, regional, and local pawn shops. In other words, you need market intelligence, and you need to know how to use it.
In addition to needing market intelligence to present your pawn business as a low-risk business venture, you need it to develop profitability ratios that buyers will find enticing and indisputable.
Most pawn brokers are too busy managing everyday operations to complete all of the tasks necessary to obtain the market intelligence they need to achieve the highest possible sale price. They simply don’t have the time and resources available to gather data from multiple sources, analyze it, and package it for potential buyers.
This is precisely why it is so important for independent pawn shop owners to reach out to pawn shop exit strategy consulting experts before they reach out to potential buyers. Pawn shop exit strategy consultants that have the expertise and in-house processes in place to perform in-depth analyses, market pawn shops strategically, and deliver results can be lifesavers to any pawn broker that needs to sell at the optimal price in order to meet future goals—whatever those goals may be.