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View Full Version : Looking to sell hosting business - how to go about it & tips
Sllingahost 05-03-2008, 08:56 PM Hello,
sadly, due to changes in life, i am no longer able to take care of my hosting business. Im looking for hints and tips of selling it and am looking to get a quick sale to make sure customers are not affected as we get an order or 2 a day at present.
A few questions:
How do i work up a sale price?
We dont really have any legal documents, would i need to have the buying company sign anything? does anyone have any templates?
will we sell on all assets, like the website & servers, so the business can continue without a hitch? or just sell the customers and have the buyer move all accounts off?
I never thought this time would come but i have found myself without much time nowadays and cant put as much into the business as i once did.
Thanks for all help and advice!
minipro 05-05-2008, 10:43 AM We are at the other end of spectrum and are negotiating to buy out a hosting business. Of course, the questions are almost similar with the main question being the valuation of business.
canishosting 05-05-2008, 04:59 PM Hello,
sadly, due to changes in life, i am no longer able to take care of my hosting business. Im looking for hints and tips of selling it and am looking to get a quick sale to make sure customers are not affected as we get an order or 2 a day at present.
A few questions:
How do i work up a sale price?
We dont really have any legal documents, would i need to have the buying company sign anything? does anyone have any templates?
will we sell on all assets, like the website & servers, so the business can continue without a hitch? or just sell the customers and have the buyer move all accounts off?
I never thought this time would come but i have found myself without much time nowadays and cant put as much into the business as i once did.
Thanks for all help and advice!
Hi,
I'd be willing to talk to you about it. Wanna contact me offlist? djoseph at canishosting dot com
XLOnlineHost 05-05-2008, 11:05 PM If you are still looking Contact me via phone, aim or e-mail, thank you :)
Greg1243 05-07-2008, 09:32 AM Hello,
sadly, due to changes in life, i am no longer able to take care of my hosting business. Im looking for hints and tips of selling it and am looking to get a quick sale to make sure customers are not affected as we get an order or 2 a day at present.
A few questions:
How do i work up a sale price?
We dont really have any legal documents, would i need to have the buying company sign anything? does anyone have any templates?
will we sell on all assets, like the website & servers, so the business can continue without a hitch? or just sell the customers and have the buyer move all accounts off?
I never thought this time would come but i have found myself without much time nowadays and cant put as much into the business as i once did.
Thanks for all help and advice!
I could be interested in purchasing it.
contact Greg sotou at socal.rr.com
Frank_CCI 05-07-2008, 12:39 PM How do i work up a sale price?
We dont really have any legal documents, would i need to have the buying company sign anything? does anyone have any templates?
will we sell on all assets, like the website & servers, so the business can continue without a hitch? or just sell the customers and have the buyer move all accounts off?
On the sale price. If you do a search on WHT on Valuation or something similar you'll probably find a number of posts on the topic. My sense is that companies with less than $1 million of annualized revenues will sell for around 1 times their annualized revenues depending on how the deal is structured.
Legal documents. You can probably rely on the buyer to draft the legal documents so you don't necessarily have to have anything in hand at the start of the process. In any event I strongly encourage you to find an attorney that can review the documents on your behalf before you sign anything.
What you're selling. What you sell will vary with the buyer. Some buyers want everything so they can keep it all as is. Others will want to migrate the customers onto their own platforms.
Feel free to pm me if I can be of more help.
freethought 05-07-2008, 01:52 PM Feel free to contact me on edward.dore@freethought-group.co.uk if you're still interested in selling.
othellotech 05-08-2008, 10:47 AM How do i work up a sale price?
Go and read the various sale threads in the Other Hosting Offers section and you'll get a feel for the questions you'll be asked and the kind of value that will be attached to the clientbase.
IMHO first and foremost you want someone who's going to take care of the clients in the manner to which you would like.
Its difficult to generalise as every sale is different, but the *average* I've been seeing this year on small (sub $400k/yr) hosts is ~8 months turnover,
Obviously if you've offered lifetime hosting for $0.99 that can affect the valuation one way, and if you've charged $50/month for 20Mb that can affect it the other way :D
MulberrySquare 05-09-2008, 09:46 AM If you are still interested in selling then get in touch with me at james@mulberrysquare.tv as I could be interested.
Thanks.
James
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