Hi: say i wanna buy a US-based hosting company with at least 500 customers. All customers must pay via credit card online (no cash). How to calculate a fair price for it?

(it is not a buisness proposal, business proposal will be posted someday later :-)

You add up all the client's total monthly payments together.

for example:

client 1 = $20 mo.
client 2 = $10 mo.
client 3 = $5 mo.

Average per client = $11.66 (20+10+5/3)

Then pay the company 3 months in advance for each client:

$11.66 x 3 = $34.98

$34.98 x 500 = $17,490.00

Just my opionion :)

Hello,
I think this has been discussed before, if you use the forums 'search' function, you should be able to find it. It really depends on a lot of things, like what the average client pays per month. If it's 500 $2/month clients, it wouldn't be worth as much as 500 $10/month clients, and also the average traffic and disk space usage per client, retention rate, etc etc etc. Hope this helped a bit.

Regards,

in that case: 500 clients where they all pay $2 per mo... the company is not worth buying in the first place.

How often such deals happen to your expirence?
and why 3 months? Why no equipment costs?

Of course there are equipment costs.... But I do suggest moving all the clients to your own servers :)