Businesses for Sale in Hawaii

Buyers Frequently Asked Questions

Q. Why should I buy an existing business?

A. There are several reasons to buy an existing Hawaii Business:

1. Actual results rather than possible projections

2. Immediate cash flow

3. Trained employees in place

4. Established suppliers and credit experience

5. Established customers and name recognition

6. Existing licenses and permits

7. Training by the seller

8. The possibility of owner financing

Q. What about confidentiality?

A. The sale of an ongoing business is very confidential for both the seller and the buyer.

1. All inquires are held in strict confidence.

2. You will be asked to sign a non-disclosure agreement before any detailed information about a specific business is given to you.

3. Meetings are confidential and may be held after normal business hours. This protects the business you may purchase by preserving the customers, suppliers and employees for the seamless transfer of the business to you.

Q. What are some of the things to consider when buying a business?

A. The main items to consider are:

1. "Do You Like The Business"? <<< this is KEY!

2. Additional considerations are: location, down payment and the owner's true discretionary CASH FLOW

3. What training will the seller provide?

4. What support will my suppliers give me?

5. Can I improve the business?

6. What can I do that the seller is not doing?

7. What is my competition?

Q. How much down payment will I need?

A. The amount of down payment varies depending on the type of business, the amount of hard assets included, the seller's situation and your liquidity. Buying a business is actually very down payment driven.

Naturally the amount of money you have for the downpayment determines the size of business you can purchase. Typically, the more cash down you can offer a seller the lower the total sale price of the business. Your Hawaii Business Broker will discuss with you the level of cash investment you will be comfortable with.

Your Hawaiian Islands Business Broker will explain to you that you should not totally commit all of your available liquid assets because of the importance of operating cash after you take over the business. Knowing your comfort level of cash investment is the most important information that your Broker needs to know to match you with the right business.

Q. Why should I use a broker to buy a business?

A. First, you will save time and money. The seller pays for your Hawaiian Islands Business Brokers services and the Broker knows what businesses are available. The Broker will learn what businesses are in your price range.

The Broker knows the seller's needs and what your requirments are, therefore can structure a transaction that is good for all parties involved. Your HIBB is a professional with experience in overcoming every imaginable obstacle. He will show you how to make an offer to purchase that protects you.

Q. Why should I go into business for myself?

A. Several surveys to answer this question all seem to report the same findings. In the order of importance to the buyers here are the results:

	1.	To do my own thing, control my own destiny
	2.	Do not want to work for someone else
	3.	Better use of my skills, ability and imagination
	4.	For the money
	5.	To build something I can pass on to children

Q. What does it take for me to be successful?

A First you will need enough money to make the investment of buying a business and to make the improvements you see as necessary.

	1.	You will also need operating capitol and reserves to live on.
	2.	You must be willing to work hard, keep long hours, stay motivated, and keep your enthusiasm high. Far too many business buyers think they can just sit back and let the business continue to run as before.
	3.	Real business owners must be doers. You are going to be an entrepreneur and a risk taker. If you accept these conditions you should be successful and excited about the possibilities.

Q. How do I make an offer on a business I like?

A. Working through your Hawaiian Islands Business Broker, you can make an offer at a price with which you are comfortable. This allows room for negotiations. You assume the information given you so far is correct, but you will have time to fully verify to your satisfaction before any closing takes place. This is done by the addition of conditions and contingencies to the offer to purchase. Your Broker will suggest several to you that will protect your interests. This will allow you time for due diligence and the luxury of stepping back and looking at this purchase without the emotion of continued negotiations.

Q. Aren't most of the businesses up for sale are the ones losing money?

A. This is a common belief, but a belief that is not usually correct. The vast majority of businesses for sale are being sold for human reasons rather than financial ones. Human reasons include health problems, change in the owner's family situation, divorce, desire to do something else, relocation, retirement, or just plain burnout. Generally speaking, a business does not survive for several years if it is losing money consistently. However, most business owners will take advantage of every opportunity to reduce the income taxes that the business must pay on profits. Therefore, it is necessary to determine the true owners benefit to fully understand the financial health of the business. The bottom line is, most businesses for sale in Hawaii we offer are profitable.

The Cash Flow Schedule provided by your Hawaiian Islands Business Broker is an important document that shows the actual cash flow going through the business to the benefit of the Seller.

Q. Our cash is limited; do you sell any small businesses?

A. Businesses for Sale in Hawaii are available in all price ranges, and we are constantly adding new businesses. Listings can vary from under $50,000 to over $5,000,000. The buying of a business is down payment driven, with cash requirements as low as $10,000 to $20,000. There will be many opportunities available to you.

Q. What does it cost me to use Hawaiian Islands Business Brokers?

A. There is no fee or charge to a buyer. Our compensation is in the form of a commission earned when we successfully bring a buyer and seller together at the actual closing of the transaction. Our interest is educating you about the buying process and in finding a business that works for you. The Hawaiian Islands Business Broker will work very hard in understanding your needs and interests, and then staying with you throughout the entire process.

Q. What are the steps in buying a Hawaii business?

A. See the section titled Steps to Buying a Hawaii Business

More Info:

Steps to buying a Hawaii business
Fundamentals of buying an existing Hawaii business
Reasons to use a Hawaii business broker
Frequently Asked Questions about buying a Hawaii Business