According to the National Mining Association, gold was discovered in America in North Carolina in the early 1800s. However, it wouldn’t be until 1848 when gold was discovered in Sacramento that the California Gold Rush would begin and transform our country into a gold-obsessed nation forever.
While gold prices shift daily in accordance with the economy and a variety of other factors, one thing history has taught us is that gold manages to retain its value.
Your pawn shop, however, may not.
A pawn shop’s value is impacted by the price of gold, of course, but there are many other factors that dictate what a pawn shop is worth and what it will be worth at a later date. Unlike gold, which has risen in price consistently for the past decade or more, your pawn shop’s value may be higher now than it was 10 years ago—and much higher than it will be 10 years from now.
If you’re considering selling your pawn shop, you need to be aware that there is a window of opportunity open to sellers now that may not be open later on. Today’s pawn shop sellers are in an excellent position. Because since COVID-19, the major pawn companies are actively competing to make as many acquisitions as possible in order to beat out the competition and come out on top and purchase earnings. Owners of individual shops or groups of shops have a reasonable amount of leverage even before they make a thorough assessment of what their business is worth.
Many of the most valuable pawn shops and groups of pawn shops have been scooped up. This has left fewer independently owned shops for the major pawn companies to fight over. While the need for new acquisitions is still great right now, as time goes on and more shops are acquired, it will become more difficult for individual pawn shop owners to find multiple buyers and sell their businesses at competitive prices.
The bottom line is that now is a great time for independent pawn shop owners to sell. Windows of opportunity like the one that is open now don’t come along every day. Unlike gold, your business may not retain its value. If you’re on the fence about selling, share your concerns with Stallcup Group. By taking into account the unique characteristics of your shop or shops, we can help you determine whether or not it is truly in your best interest to move forward with the sale of your business.
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