Hi Guys,

Hope you're all fairing well :)
I'm interested in people's differing opinions on how one would work out the "buy" value of a host, as a going concern?
I'm talking about very small ones, which are only turning over say sub £3-4k a year, and am just interested in how you guys individually would work out how much such a host would be worth paying for?

The reason I ask is that I've got a few on the table. They're only turning over sort of £1-2k per year, but the current owners are friends of mine and need some cash. I've provisionally signalled interest, and have a good idea of worth, but thought I may as well post here too :)

Cheers for your thoughts

Alex

Well.... have you tried searching WHT? Commonly you could use 9 months revenue as a guide.

OK - thanks for your reply.
Anyone else? :)

9 months revenue is the industry average if you go by WHT standards.

Revenue is one 'easy' way of getting a ballpark figure and 9 months looks about 'average' for these things, but you might want to look at uptake too. How fast they're getting customers and - importantly - how much the host is spending on getting those customers. Advertising can make a significant dent in the revenue of a small host.

A company that has been in business for multiple years and has a good reputation would be valued much more than 10 months revenue IMHO.

This is really hard to guage and just looking by revenue generation and not business potential may not be the best way to go... ...

A company making $1000 per month but with a dead end road to its business and bad reputation as opposed to a company making $100 but with a very high evolution potential maybe more valued.