Web Hosting Talk







View Full Version : How much my company worth?


sodapopinski
07-24-2002, 02:12 PM
OK,

Since I'm very anxious to take overseas Master of Business Administration, I'm thinking to sell my hosting company and use the money for it.

Currently I have about 550 clients billed yearly @ $59.95/year, 15 WHM resellers @ $39.95 billed monthly. About 100 clients also registered their domain name through our service @ $24.95 per domain per year.

Next renewal date for yearly plan will start on Sept 2002 and so on. Average revenue since Sept 2001 'til now is $3000 per month. On average, new signups are 55 accounts per month. Most of them referred by existing clients.

Operational cost: 1 colocation box cost $200 per month plus 1 dedicated box cost $120 per month.
On average there's 3-10 support requests per day.

This is a sale for domain name, hosting accounts, next domain renewal as well as 1 colocation box.

In you opinion how much my company worth?

dynamitehost
07-24-2002, 02:17 PM
I would say about $100,000. But your more likely to get around $75 - 80k.

Just my 2 cents.

Alan - Vox
07-24-2002, 02:34 PM
If you allready have a succesfull business why dont you just keep doing it tsther than doing courses?

deathlord
07-24-2002, 02:47 PM
That seems very sucessful I also think you should stick with it and continue to let your buisness grow.

VoxKeysGtr
07-24-2002, 02:51 PM
Use it as a case study for you MBA studies. You can kill two birds with one stone, so to speak. :)

sodapopinski
07-24-2002, 02:55 PM
Originally posted by SplashHost.com
If you allready have a succesfull business why dont you just keep doing it tsther than doing courses?

heh?? :confused: :confused:
Depending on my friends experienced, if you hold MBA title, you can get $8K - 10K basic salary. And best yet, generally you only work eight hours per day and so we can have more time with our family. So far although I have 2 staffs to help me operate this service I must connect at least 10 hours per day to monitor our helpdesk performance.

Alan - Vox
07-24-2002, 03:38 PM
But arent you making more than that allready? and with 3-10 tickets probably working less.

sodapopinski
07-24-2002, 03:52 PM
Originally posted by SplashHost.com
But arent you making more than that allready? and with 3-10 tickets probably working less.

Yes, that's one of the reason why I did not simply post an offer to sell here.

Btw, I just searched my site at google and found more than 400 sites put a link to my site. And so far I see NO bad reviews about my service. I though it's a good additional value.

Kottonmouth
07-24-2002, 04:29 PM
1 - 1.5 X your yearly revenue is a good estimate for what your company is worth. What you actually get may be less, especially with the current economic conditions.

HostingDirect
07-24-2002, 10:27 PM
These are not very high margin accounts at $5.00 a month. A lot will depend on you customer mix, solid busiesss customers will bring a little more. With these low margins I would say you would be lucky to get .5 X your yearly revenue in this ecomomy. If the customer base has been around for more than 1 year that will add a bit to the value.

WiseOnline
07-25-2002, 12:18 AM
I would just keep the company if I was you, looks like a good investment if you are not geting millions of complaints an hour. :)

sodapopinski
07-25-2002, 01:14 AM
Originally posted by HostingDirect
These are not very high margin accounts at $5.00 a month.

ehm..not really..:rolleyes:
I use cogent base box and since I did not overselling bw quota so far on average my client only spent 10-250MB bw usage per month. Thus the operational cost for each client only $1 to $2 per month.