FAQ's Continued
How does Foster Hunt locate buyers?
We first work with our clients to determine the Target Market. These buyers fall into three main groups: Financial Buyers, Strategic Buyers, and Industry Buyers.
We then create and execute our Marketing Strategy. Our strategy utilizes a combination of Internet, Targeted Direct Mail, and our Database of Buyers. In some instances, we may also employ Traditional Media such as Print, Newspaper, and Trades.
Once we have received and compiled responses from our candidates, we carefully screen and qualify each potential buyer based on experience and access to financial resources. Each buyer signs a Confidentiality Agreement and the buyer commences the confidential review of the company’s operation and procedures, historical financial statements, financial projections, and any proprietary properties agreements.
Buying: What is the advantage of buying an existing business?
Existing Businesses typically possess cash flow, established customer and vendor relationships, trained employees, and market proven products and services. Aside from organic growth, external growth is achieved through mergers and acquisitions. In many instances, purchasing a company which may not even be a competitor, but more complimentary, can provide the greatest growth potential. Through an acquisition, a company can grow revenues and earnings at a much faster pace in many situations, than an existing company relying solely on organic growth.
How does the Buying Process work?
We assist the buyer from start to finish:
- Foster Hunt and buyer meet and collaborate on business strategy, type, and revenue size.
- Based upon revenue and type, the buyer is qualified from a financial and business perspective.
- Confidentiality Agreements are executed to protect both buyers and sellers. Potential Buyer reviews all relative information of the company including previous tax returns, net cash flows, projections, operational procedure and proprietary information.
- Foster Hunt arranges initial meet and greet between potential buyer and seller. An operations visit is included or subsequently scheduled shortly thereafter.
- Issuance of Letter of Intent upon successful negotiation of general terms and conditions.
- Due Diligence is performed by the buyer and legal counsel.
- Draft Purchase and Sale Agreement is generated, reviewed and negotiated in conjunction with legal and tax advisors. At this phase, all terms and conditions are negotiated between buyer and seller along with legal counsel.
- All agreed upon terms and conditions are incorporated into the Final Sale and Purchase Agreement which is executed.
- Physical Closing and transition of company to Buyer occurs.




