If an independent pawn business has multiple owners, it can be difficult for partners to decide what to do when one owner wants out, particularly if it doesn’t make sense or isn’t feasible for the remaining owners to buy out the partner who wants to move on. Certain legalities and concerns that remaining owners might not be able to manage multiple shops after one owner bows out can also complicate matters.
Sometimes, the only way to successfully reorganize a business’s capital structure in a way that makes all owners happy is by selling the current business. If you get enough out of the sale of your pawn business, you and your partners can make a clean split. One or more partners can retire or begin different ventures; other partners can move on start new pawn businesses, if that is their wish.
In order to ensure that the unique goals of every owner are met, it is often in the best interest of owners to hire exit strategy specialists that can be objective and act as intermediaries that can provide solid information based on financial data, the pawn business’s unique characteristics, and the current market. They can also help negotiate lenient non-compete agreements with the buyer so that owners who wish to move and start new pawn businesses aren’t forced out of their preferred areas.
Some of the other things that exit strategy specialists can do to help make the closing process go smoothly for all owners involved include:
- organizing the purchase or sale agreement and allocating any closing fees appropriately,
- keeping an updated checklist of items that need to be completed at various points throughout the closing process, uploading to a data-site for easy access.
- negotiating all closing terms, including non-compete agreements,
- taking tax issues and how they will impact all owners into consideration, and
- easing the transfer of your business to the buyer.
- Overseeing the audit and closing.
If you or one of your partners is ready to move on, selling your current pawn business and starting fresh can be an excellent way to reorganize your capital structure and move forward. Having solid representation is key. Experienced exit strategy specialists can not only make sure you get the most out of the sale of your business, but that you and your partners are able to move forward and achieve new successes independently.
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