Most pawn business sellers, like other business sellers, believe that their shops are more valuable than their potentials buyers do. This is why it is so critical for pawn shop owners to obtain a pawn shop valuation from an objective source.
When you are armed with an accurate valuation, you can prevent yourself from becoming locked into negotiations that aren’t really negotiations, but conversations that don’t go a whole lot further than, “Well, I think this is what my pawn shop is worth,” and, “Well, we think this is how much your pawn shop is worth.”
When you and the buyer can’t point to solid data, you have no common ground from which to start a fact-based discussion. As a result, you usually either wind up settling on a price by meeting somewhere between your two price points, or just walking away from the negotiations table altogether.
A lot of pawn shop owners, and especially pawn shop owners that have never sold a pawn shop before, assume that a pawn shop valuation is just a document that reflects their current financial situation. In actuality, while a pawn valuation does include a detailed analysis of your current financial situation, it contains so much more. It should, in addition to estimating the economic value of your pawn business, estimate what the economic value of your pawn business will be after the sale of your pawn business is complete. In other words, it should enable both sellers and buyers to predict with great accuracy what the business will be worth as soon as the new buyer takes over—and what it could potentially be worth down the road.
Considering selling your pawn shop? Click here to request a free, no-obligation pawn shop valuation from Stallcup Group today.
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