Harbor Sweets

Harbor Sweets

Salem, MA
Sold To: Hilliard’s

What made the business attractive to buyers?

  • The Company was a leading north shore chocolatier, a nice complement to the buyer, a leading chocolatier south of Boston.
  • The Company had a very strong corporate and mail order business with some retail sales. The buyer was a very strong retailer.
  • Strong steady accounts who pay quickly.
  • Long track record of growth and profitability.
  • Quality facility for food handling and storage.

Challenges:

  • Fresh premium chocolate has a shelf life of only a few months. This can be a burden to have product on hand during the busy seasons of Easter, Halloween and Christmas. Thus managing the production team during January when everyone is on a diet, and ramping up product production for a busy fall/winter holidays was critical, especially since the business was near capacity for production space, and storage.
  • The business ventured into two retail spaces in malls to expand their retail sales. These spaces were expensive. They did very well during the Christmas season, but were a challenge during the other nine months of the year.

Beacon’s Role and Results

Beacon prepared a full CIM outlining the business and its mix of products, customers, team, and facilities.

Beacon created a couple of videos showcasing the manufacturing process and the facility. This reduced the number of buyer tours. Beacon then selectively targeted buyers who likely had the greatest to benefit from this acquisition.

Why did the owner want to sell?

The owner worked in the business since high school and purchased the business from the founder. She grew operations, revenues and profits significantly during her tenure. When we first met, the business required significant capital for the next leg up. Since the owner was nearing retirement, we discussed options regarding potential value now vs potential value after investment and growth. We also discussed the timeframe to realize this increase in value. The owner chose to explore finding an acquiror with production capacity, a management style which was fit with hers and an existing business which complimented Harbor Sweets. We were able to find a buyer who met all these factors in group which had recently purchased Hilliard’s.

For more information on this transaction or other similar business sales contact:

David Humphrey
Beacon Equity Advisors
781.551.8000

Let Beacon sell your company for you.

About Beacon Equity Advisors – Since 1985 Beacon Equity Advisors, a leading New England Merger & Acquisition (M&A) advisory firm with offices in eight key New England cities, including in Boston, MA Providence, RI and Manchester, NH has represented owners selling closely held distribution businesses. Beacon Equity Advisors’ experience selling value add distribution companies enabled them to tell an engaging story about this Boston, MA area distributor in the M&A marketplace. Highlighting key enterprise attributes enhanced the company’s value as Beacon identified prospective buyers who were able to clearly recognize synergistic opportunities. By matching the right buyer with the right seller, shareholders were able to realize an above market value multiple in the sale of their business in a transaction beneficial for both parties. Beacon represented the Board of Directors and Shareholders in identifying the buyer, negotiating deal terms and brokering the transaction.