Success in Tucson

December 12, 2012 by Steve Stallcup

Topics covered: In the News

Stallcup Group facilitates the sale of 12 Arizona pawn shops.

FOR IMMEDIATE RELEASE: KELLER, TX, DECEMBER 12, 2012

Stallcup Group, Inc., an exit strategy consulting firm headquartered in Keller, TX, today announced its successful facilitation of the sale of USA Pawn, a pawn business made up of 12 independently-owned Arizona pawn shops. Ten of the pawn shops are located in Tucson, AZ; two are located in Bullhead City, AZ, near the Arizona-Nevada border.

CEO and Founder Steve Stallcup explained the significance of the sale. Said Stallcup, “The marketplace had become significantly less aggressive due, in part, to the perception that pawn shops had been experiencing a slow down in gold activity. By proving that these particular pawn shops were not experiencing a slow down in gold transactions, we were able to market the pawn shops to potential buyers and achieve a sale price that reflected the actual –  rather than the perceived – value of the shops.”

Former owner of the pawn shops, Craig McCall, brought Stallcup Group on board in August 2012 because he recognized that working with an objective third party with experience in the pawn industry would help expedite the selling process. It would also remove a number of the burdens normally associated with business closings from his shoulders. McCall is no stranger to the closing process, having sold 11 pawn shops in Las Vegas, NV in 2008.

“Stallcup Group relieved me of many of the closing processes I would have had to attend to personally, which allowed my staff and I to continue to focus on daily operations. For instance, they relieved me of having to respond to buyers’ requests for information and manage data gathering,” said McCall.

“Ultimately, I was most impressed with Stallcup Group’s financial modeling, which is extremely sophisticated, and their ability to package information in a way that buyers want to see,” concluded McCall. “Stallcup Group was with me from the initial meetings with the buyer to the final closing, and provided insights along the way. I was very impressed with their thoroughness and guidance throughout the entire process.”

In addition to selling USA Pawn, McCall’s goals included forming and negotiating land leases, achieving aggressive non-compete agreements, and eliminating anything in his financial data that buyers could perceive as a red flag and potentially use to their advantage during negotiations. Through thorough analyses of USA Pawn’s financial data and the unique attributes and characteristics of each shop, Stallcup Group was able to help McCall achieve all of these goals.

The formal sale of USA Pawn to EZCORP, Inc. (Nasdaq: EZPW) was completed on December 20, 2012. The final selling price was 17% higher than the first bid presented by a prospective buyer.

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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