HAWAII BUSINESS SALES' BUYER SERVICES
PROFESSIONAL BUSINESS FOR SALE LISTINGS
Our goal is to provide you, the business buyer, with accurate and quality information about the businesses we have for sale. While we do not do any material amount of due diligence of a business we have listed for sale, nor do we warrant or guaranty any business information on this website or in our business profiles (this guaranty is for the business seller to do, HBS is only a conduit for this informaton from the seller to the buyer), and we strongly recommend that business buyers and their advisors (attorneys, accountants, tax preparers, etc.) conduct a complete and detailed due diligence of any business they buy, including the ones we are representing the sale of, to ensure that all the information is complete and accurate and does not fail to disclose any material information about the business. While we attempt to keep the information we provide current and up-to-date, it is up to the buyer to ensure that it is.
We provide a detailed Confidential Business Profile of the businesses we are selling with the intent of answering most of the important questions a buyer might have. In addition, we will always be happy to address any questions buyers have and to have our client's, the business seller, provice this information in a accurate and timely manner. If you see any information we present as confusing please bring this to our intention so we can resolve any issues.
We ask all buyers to complete and sign a Non-Disclosure Agreement and basic Buyer Financial Statement. We do this to ensure that those buyers who we share our client's confidential information with (tax returns, financial data, market position, etc.) understand that they should not violate their promise to keep this information, including the fact that the business is for sale, private and confidential. We also want to ensure that we are working with buyers who have the financial ability to close on a transaction. There is no reason to waste either your time or the seller's. Unlike buying a house, banks tend not to provide significant bank loans to finance a business purchase, therefore, the buyer needs to have the financial capability to both pay for the business and to have sufficient operational working capital to successfully run the business after the purchas
If you want to receive emails from us (NO SPAM) about businesses we have for sale and related information, please click here to go to our Buyer Registry page.
HBS’s comprehensive buyer representation service is designed for both individuals and established companies who generally (but not always) have a clear idea of the type of business they wish to purchase and are committed to making an acquisition happen, rather just waiting to see what comes on the market.
Benefits of a Proactive, Retained Search.
There are considerable benefits in engaging a professional business intermediary to execute an aggressive, proactive search for acquisitions, as opposed to just waiting to see what businesses come on the market.
Quicker results. It may be years until a suitable acquisition target comes on the market. In the meantime, all the potential synergistic benefits of an acquisition are lost, or a competitor may acquire the ideal target.
Proprietary deal flow. The client gets proprietary access to companies that are not formally for sale; thus, the client is not bidding against other buyers. By contrast, if the target has retained an intermediary to sell the company, the client will likely be bidding against others in an auction format.
Access to the highest quality businesses. Many of the best companies never go on the market. While there are great companies that hire an intermediary to sell, many never do, as they sell quietly to competitors, customers, suppliers, employees, etc. that approach them.
Sellers are much more open. Sellers are more willing to engage in discussions with a professional business intermediary than a random buyer who approaches them, or with a buyer from in their industry, as they worry about such buyers’ intent. The fact that the buyer is willing to engage and pay for an intermediary communicates forcefully that the buyer is serious about making an acquisition. In addition, many sellers are reluctant to pay intermediaries, even if the intermediary gets them a higher price that more than compensates for the fee.
Lower price. Sellers will often accept a lower price if the buyer is paying our fee. Sellers think in terms of what they net from a sale, after commission, not the gross selling price. Sellers often tell us, "well, I need to net $XX on the sale, so let's price it at $XX + your commission".
Sellers may lack professional representation. When we approach an owner on behalf of our buyer client, they are very unlikely to hire a intermediary or other experienced negotiator to represent them. Many business owners are lousy negotiators, and their lack of representation gives the buyer a substantial advantage.
Our Buy Side Search & Representation Process and Timing
The following table summarizes the basic steps in the process, and approximate timing. Naturally, the timing can vary considerably with the scope and complexity of each assignment, but provides a general guideline.
Assemble the internal and external team that will be assigned to the project
Clearly define the business objectives
Clearly define the target acquisition criteria and identify firms potentially meeting the criteria
Systematically approach the firms and make a preliminary assessment of their level of interest, fit with the acquisition criteria, financial performance, asset value, price expectations, etc.
Estimate the value of the targets on a standalone basis and reflecting potential synergies
If multiple possible targets, prioritize based on available information vs. established criteria
Draft and negotiate the terms of a non-binding Letter of Intent
Complete financial, administrative, and operational due diligence on the target
Draft and negotiate the terms of a stock or asset purchase agreement
Prepare for closing of transaction and create detailed plans for integration of the companies.
For clients that engage us in a retained search, HBS takes the lead in directing efforts in all the action steps in the table above. In some of the activities we drive the process and do the vast majority of work (e.g., identifying acquisition targets, contacting and negotiating with targets, estimating the value of the company), while in others we facilitate, direct and coach the client and its advisors on the activities (e.g., definition of objectives and criteria, drafting of legal documents, completion of due diligence, preparation of integration plans).
One of the largest "business for sale" websites in the US is www.bizbuysell.com
If you see a Hawaii business for sale on this website that we are not representing the seller as a seller's agent, we would be happy to represent you as a "buyer's agent". Contacts us to discuss.
We are happy to provide a complimentary consultation for anyone considering a proactive search.
Please contact us for more information.