Buying a Hawaii business for sale can represent a great opportunity for investment. Buying an established business usually is much safer financially and more profitable than starting a new business because an existing business already has an established customer base, source of revenue and business operations. An existing business also may own valuable patents or copyrights.

It is often more expensive to buy a Hawaiian business for sale than to start a new one, although it is generally easier to obtain financing for an existing business. Investors tend to be more comfortable with a business that has a proven performance.

There are three primary actions to perform before buying a business for sale in Hawaii:

1. Review the tax returns and financial statements over the last few years for the business for sale. Hawaii businesses can measure their growth potential with actual experience rather than conjecture.

2. Examine the current profits for the small businesses for sale. Hawaii businesses will have expenditures such as employees’ salaries, utilities and insurance that you must deduct from the sales revenue.

3. Inspect the business operations before you buy a business. Hawaii businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.

Action Steps
The best contacts and resources to help you get it done

Find a Hawaii business for sale

Many websites offer listings of companies for sale. A listing for a Hawaii business for sale by owner should show the location, asking price and cash flow, among other details.

I recommend: BusinessBroker.net allows you to select the business location by state and you may also specify an industry and asking price range in your queries. MergerNetwork has an extensive database of businesses for sale in Hawaii and provides a summary of each listing.

Locate brokers to assist you in the purchase process of a business for sale in Hawaii

A Hawaii business broker can identify businesses that are clearly undesirable and help negotiate a price on the best candidates. A business broker also will help you obtain any licenses and permits that Hawaii requires.

I recommend: Hawaiian Islands Business Brokers in Kihei helps entrepreneurs interested in an independent business or a franchise for sale. Hawaii is also home to a branch of VR Business Brokers that has its headquarters in Honolulu and offices on all of the islands.

Hire a Certified Public Accountant when considering a Hawaii business sale

A CPA will need to review the financial records of any business in which you are interested. Additionally, a CPA can ensure that you file any required legal documents.

I recommend: E.N. Kemp & Associates in Kaneohe specializes in providing business valuation services for the clients of two accounting firms in Hawaii. Bowen Hunsaker Hirai & Company is based in Honolulu and is dedicated to business valuation and litigation services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a Hawaii business for sale. The owner may no longer be interested in running the business or there may be legitimate financial reasons for putting it up for sale. You also will want to review the marketing strategy for the business because many lagging businesses can be revived with proper advertising.