When pawn shop owners are ready to sell, it is often the intangible assets that are the most difficult to uncover and relay to potential buyers. Some of your shop’s intangible assets might include:
Regional zoning and licensing restrictions.
When local governments prevent the building of new pawn shops in certain areas, the values of existing pawn shops go up. How much more valuable a shop becomes as a result of zoning and licensing restrictions is difficult for most owners to determine. Just as it takes qualified realtors to help homeowners determine the right asking price, it takes experienced business brokers like Stallcup Group to help pawn shop owners properly evaluate their businesses.
Close proximity to national competitors.
If you think like a buyer—in other words, if you think like a major pawn company—you’ll understand the reasons buyers prefer to purchase independent pawn shops that are close in proximity to competing shops. In order to translate that desire into dollars when it comes to the sale of your pawn shop, you have to know the ways in which a large company will change your business model in order to compete with the competitor down the block and across the street, and how much those future changes impact the value of your pawn shop now.
Demographic considerations.
Ideally, major pawn companies want to buy shops that are located in areas that have a high population density or are growing in population at a fast pace. Other characteristics regarding location, such as close proximity to universities and public transportation hubs, also increase buyers’ purchasing desires. Buyers will also take into consideration the accessibility of your store. If customers have to make a U-turn in order to get to your shop, or if parking is limited or difficult, you may have to work harder to achieve your desired sale price.
In addition to intangible assets that have to do with location, a business may have many other intangible assets that are “hidden” or difficult to analyze. When you’re negotiating with major pawn companies, you should be able to not only list your shop’s tangible and intangible assets, but prove their values. Do you know what intangible assets would make your pawn shop more valuable to buyers? Do you know the true values of all of your assets?
Contact Stallcup Group today. Turning a shop’s intangible assets into data that will influence buyers’ offers is one of Stallcup Group’s specialties. We’d welcome the opportunity to help you turn your intangible assets into tangible dollars.
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