Last week, in our blog post, “Need Help Selling Your Pawn Shop? Watch Out for Pawn Shop Sale Consultants Who Don’t Put You First,” we discussed the importance of working with exit strategy specialists who put your interests above the interests of buyers. This week, we’d like to discuss the importance of working with exit strategy specialists who not only put your interests first, but are specialized.
As an independent pawn shop owner, you know that your processes are significantly more complex than, say, the processes involved in running a doughnut shop, clothing store, or a even an auto mechanics shop. Zoning and other regulations and the licenses you need to run your pawn business also tend to be more complex than those of other businesses, even when those businesses are similar in size or have similar profit margins.
Unfortunately, many pawn shop owners who are ready to sell reach out to “catch-all” companies that claim they have the expertise to sell almost any kind of business—including independent pawn shops. This is almost always a mistake.
Time and time again, the Stallcup Group team has heard the same story from pawn shop owners who’ve worked with “catch-all” companies to try and sell their pawn businesses. It goes like this: The pawn shop owner gets tired of trying to teach the pawn business to a consultant that is supposed to have the expertise required to sell their pawn business, but in reality, knows very little about what makes pawn shops tick. Time, resources, and money are wasted as a result of working with a business broker that doesn’t have a thorough understanding of the pawn industry—much less an understanding of what it takes to market an independent pawn business to buyers. Eventually, the owner ends the relationship with the “catch-all” business broker and turns to Stallcup Group for assistance.
The moral of the story is that if you’re considering selling your independent pawn business, you need to work with pawn shop exit strategy specialists who are knowledgeable when it comes to selling pawn shops—not flower shops and restaurants. Selling pawn shops is different; in order to sell them at the price you deserve, you need a business broker that knows how the major companies operate and negotiate, can accurately analyze your pawn business’s tangible and intangible assets, knows how to help you achieve certain agreements, and has a proven track record of selling pawn businesses, at impressive prices.
You wouldn’t go to a general medical practitioner when what you need is a dentist. Don’t turn to a “catch all” company when what you need is a pawn shop exit strategy specialist that knows the pawn industry inside and out.
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