Information Management Hawaii
Information Management Hawai’i, Inc., will sell and service digital office information systems for Hawai’i’s businesses, with a focus on the Neighbor Island business community. IMH will be formed as the result of the acquisition of three existing businesses: Maui Office Machines, Inc.; Electronics Hawai’i, Inc.; and, Kauai Office Equipment, Inc.
2.1 Company Ownership
IMH will be privately-held [C corporation] owned in majority by the IMH Employee Stock Ownership Trust. There are currently 15 employees, and all will own equal shares in the ESOT. New employees will be given the opportunity to become vested in the Employee Stock Ownership Plan (ESOP) after a suitable probationary period.
2.2 Start-up Summary
Our start-up costs will be $1M, which includes $450,000 for the acquisition of the Maui and Hilo operations of Servco Integrated Office Technology.
The remainder of the funds will be used for:
- Initial Inventory: $200,000
- Initial Capitalization: $225,000
- Legal, Insurance, Rent & Misc: $125,000
The start-up funding will be financed by loans arranged through the Small Business Development Center, and by the Hawai’i Community Loan Fund, and the Small Business Administration as a guarantor. Start-up assumptions are shown in the following table and chart.
|Software & IT (Web)||$40,000|
|Setup New Company/ESOP||$25,000|
|Total Start-up Expenses||$575,000|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$575,000|
|Start-up Assets to Fund||$425,000|
|Total Funding Required||$1,000,000|
|Non-cash Assets from Start-up||$200,000|
|Cash Requirements from Start-up||$225,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$225,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$0|
|Loss at Start-up (Start-up Expenses)||($575,000)|
|Total Capital and Liabilities||$425,000|
2.3 Company Locations and Facilities
We have two locations, one in Kahului, Maui and the other in Hilo, Hawai’i. The two offices are presently being leased by Servco Pacific, Inc., and we will rent from them on a month-to-month basis until we are able to relocate to more suitable facilities. On Kauai, we have a sub-contractor agreement with Kauai Office Equipment to handle installations and service.