does any one knows the best ways to sell a well established web hosting company, with its clients?

and how to evalutate its value?

thanks

I think that you'd better to sell clientbase for other web hosting company. Advertise on forums on SE, etc. As for value - it is quite difficult question.

Hi there,

You could try post in the Other Hosting Related Offers (http://www.webhostingtalk.com/forumdisplay.php?f=97) forum.
If your unsure on what to ask for a price, ask them to make you an offer.

Are you clients happy to be transferred / sold to a new provider?
Is this just a quick sale or do you care about your clients enough to make sure the new provider is reputable?

Just some things to think about...

When deals like this happen an NDA is usually signed! :agree:

Regards,
Michael Keeping

There was a similar post a few days ago regarding determining the price. The recommendations varied, but my feeling was that the price is worth 10 months of sales. Obviously, yearly paid accounts vs monthly accounts would change this number, but 10x monthly sales seems to work nicely.

Why are you selling?

Dave

I think that price must guided by number of accounts you have at the moment also.

The price is also based on how long the customers have been with you. If you have been in the hosting businesses for 5 months you will be lucky to get anymore than 7-8 months revenue

Typically a hosting company sells its "Assets" which translates to customers. You will be hard pressed to find anyone who wants to by your business with all its equipment.

The valuation of hosting assets currently runs between .5 to .8. That means you take your annual projection and multiply by 50-80% and that's what you can expect to get. This assumes many things and you could certainly find your assets woth more or less. The main factors are usually number of accounts and age of accounts. You can also expect to get paid about 40-50% at cut-over and the rest in equal payments over a year less the "churn". This brings a huge concern. If you are not dealing with a company that has a good dealof experience in this you can get burned by all the churn. Any reputable buyer will give you refernces.

Good luck!

A hosting company with 5,000 clients and in business for 5 years can expect to get 18 months revenue at least. A company with 50 clients and in business for 5 months isn't actually a hosting company and can expect to get nothing.