One Deal You Should Never Broker Alone

July 6, 2022 by Steve Stallcup

Topics covered: Acquisitions, Closing, Financial Data Organization, Resources, Selling Tips, Valuations

In the pawn industry, many believe that in order to be successful, you have to have an innate sense of the value of things.  Pawn shop owners who’ve had to let go employees who just didn’t have what it takes to make good value assessments know that not everyone has an innate ability to make good deals consistently.  There are few tricks you can learn, and certainly, you can get better at appraising items and brokering deals over time, but if you don’t have that certain something, you’re probably not going to be successful in the pawn business.

Most independent pawn shop owners who actively run their shops have that certain something.  Perhaps that is why so many of them are resistant to the idea of seeking out representation when it’s time sell their businesses.  Why would they need help?  After all, they have a good idea of what their shops are worth and know how to the buyer-seller relationship works.  Why shouldn’t they be able to get a good price for their businesses and come to fair agreements with buyers on their own?

The reason you need representation when you’re ready to sell is because the same way you have an innate sense of what items that come into your shop are worth, there are people out there who have an innate sense of what your pawn shop is actually worth—from the buyer’s point of view. They know how to properly assess the value of your location, the local population, the licenses you have in place, and much more. They have honed their appraisal and negotiation skills over time, and already have the resources in place required to remain organized, run accurate numbers, and negotiate with savvy buyers throughout the closing process.

As you know, your behind-the-scenes operations are much more complex than most people realize.  In addition to the many other tasks you perform daily, you have to keep up with a large amount of paperwork, track every piece of inventory, adhere to federal and regional government regulations, engage in good accounting practices, maintain your reputation through solid management and good customer service, and, of course, accurately assess the worth of a wide variety of items.

At Stallcup Group, our behind-the-scenes operations are more complex than most pawn shop owners realize. There are certain steps that have to be taken at certain times in order for the sale of your business to come off without a hitch. Just like you, we have processes in place that ensure that all of the proper steps will be followed. We have honed the skills necessary for coming up with contingency plans when snags do arise, and have amassed enough experience and knowledge to think on our feet and come up with solutions quickly.

We can also help you determine whether the time is right for you to sell. Contact us today for a free business evaluation. We will be happy to discuss your future goals, and will tell you honestly whether or not you should move forward with the sale of your business based on actual analytics.

If you’re a pawn shop owner, you know that one simple misstep during the appraisal or negotiations process can cost you money. You may run an excellent business, but if you haven’t spent years and years learning how to go about getting the most out of the sale of your business, chances are, despite having a thorough knowledge of the pawn industry, great instincts, and strong negotiation skills, you’re just not going to get what you should have gotten out of the sale of your shop or shops.

You can’t act on what you don’t know. When you’re ready to sell, Stallcup Group can help you fill in the blanks.

Our strategic approach to selling is what makes all the difference.

We know how buyers think and what they are looking for when reviewing a pawn shop package. Find out why Stallcup Group’s exit strategy makes negotiations a fair fight for sellers.

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