Hello,

I am wondering if any users here has expanded by purchasing another company, or a %age of their users?

I am interested in valuation techniques and general opinion, as we have been approached by a UK Host wanting to sell their user-base to us.

This is the first time we have been approached in this way, so how common is this, is it worth it, and if not where can I point this company..?

Cheers,

Rob.

Studio 51.

Originally posted by Studio-51
Hello,

I am wondering if any users here has expanded by purchasing another company, or a %age of their users?

I am interested in valuation techniques and general opinion, as we have been approached by a UK Host wanting to sell their user-base to us.


It depends.
Do you think you can provide all the services they can? Clients may leave if you can't
Can you provide it for the same price?
Can you maintain the technical support they have?
Do you think you can maintain the clients long enough to make back what you paid for them?
Can you cope with the extra in take of clients?

There are a few other things I can't think of off the top of my head right now...

Hello,

I am wondering if any users here has expanded by purchasing another company, or a %age of their users?

I am interested in valuation techniques and general opinion, as we have been approached by a UK Host wanting to sell their user-base to us.

This is the first time we have been approached in this way, so how common is this, is it worth it, and if not where can I point this company..?


If you don't decide to buy them feel free to point them my way :D

Best of luck! :)