A potential pawn shop buyer wants to know how much your business is worth now and how much it will be worth once they take over.
Uncovering what your pawn business is worth right now is complicated enough. You can’t just look at your inventory and sales records for answers. You have to look at your geographical location, competitors, licenses, and other assets, tangible and intangible. Then, you have to compile and analyze real data and present it in a way that buyers will understand and find indisputable.
Uncovering what your pawn business will be worth once a buyer takes over is even more complicated.
This is why, if you don’t have the right representation, buyers will almost always have the advantage. Their sole focus is on acquiring profitable pawn businesses at the lowest possible price. If you don’t know what your pawn business is worth and can’t make accurate projections that reflect what it will be worth to buyers after closing, you can bet buyers are going to use your lack of quantifiable data to their advantage during negotiations.
Without the help of the right exit strategy specialist, a pawn shop owner will usually settle on an asking price that feels good, and then go with the buyer that presents the offer that is closest to that asking price—which is usually far below the original asking price. Nevertheless, the average pawn shop owner will go ahead and settle, and even walk away from the transaction feeling relatively satisfied, mostly because he or she either believes that the buyer’s assessments of their business are sound, or simply doesn’t have enough data in hand to dispute the buyer’s assessments.
You would never grant a loan or purchase something based on what your customer tells you it is worth. Why would you sell your pawn shop based on what the buyer tells you it is worth?
Stallcup Group specializes in assessing the value of pawn businesses, whether they consist of one, stand-alone shop or multiple shops. Before you reach out to a potential buyer, contact Stallcup Group for a free pawn shop evaluation. You have nothing to lose—except for the dollars your buyer would have paid if you’d been armed with the right data prior to closing.
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