It is now more important than ever for pawn shop owners to arm themselves with selling/closing knowledge.
Most pawn shop owners don’t put a lot of thought into selling their businesses when they’re just starting out. Nevertheless, a pawn shop’s typical business cycle and the rate at which the major pawn companies are buying independent pawn shops show us that most pawn shop owners will sell—perhaps sooner than they might have originally predicted.
If you’re a pawn shop owner, whether you’re planning on embarking on a new business venture, reorganizing your capital structure, or hoping to retire, you should know exactly where you stand as a potential business seller at all times. If and when the right opportunity to sell comes along, knowing precisely what you want and need and where you stand in the current marketplace will prepare you to do everything you’ll need to do to get the highest possible return on your investment and honor all of the hard work you’ve put into your pawn business.
Below are some questions that you should be able to answer long before you actually engage in the selling/closing process.
- Why are you selling?
- What physical and intangible assets are you selling?
- Is it the right time to sell?
- Do you have to sell?
- What is your pawn business worth to you?
- What is it worth according to your objective pawn valuation?
- What is it worth to a potential buyer?
- Is your business ready to be sold?
- Does the way your business looks appropriately reflect its value, or could/should it look better?
- Are your financial and other records up to date?
- Can you account for every piece of inventory?
- Are all of your agreements and licenses current?
- If you own your real estate; what’s the best option?
Finally, the most important question you need to ask and answer is: Do you have the right pawn shop exit strategy consultant to assist you throughout the selling/closing process? Even if you’re not thinking of selling your pawn business any time soon, there is no time like the present to prepare to sell. The one certainty in life is that nothing is certain. You never know when the opportunity to sell might come along. When it does, you’ll be much more likely to make the right decisions if you’ve done yourself the service of arming yourself with selling/closing knowledge ahead of time.
Click here to download Stallcup Group’s sales preparation checklist.
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