I usually only come on this board late last night.

So I get my posts in, then check later.


Anyway..

I get a phone call on Friday, last week about a ISP in New Jersey that wants to sell either all of the company as a whole, or sections to different people..

Here are the stats

1500 dialup clients
350 virtual hosting clients
16 Colo Servers
50 Dedicated Servers

They had some other stuff, but I dont remember.

I have there NDA(Non-Disclosure Agreement) being reviewed by the law firm that represents my company, but it should make an interesting topic.

In regards to there hosting, the virtual accounts average at around 40$ per month.. Kinda expensive, but now sure what comes with it.

There colos are around 250-300, and dedicateds between 350-800.

I know the lawyers will say its a go on the NDA, then the talks are on.

My question is Ive never done this before, and not sure why a company would really want to give up this business unless things are bad.

Thoughts would be good, and I will continually add to the information, as I get it.

Joe
:karate:

Hum...

Makes you think...

There are only 2 reasons IMHO why a company would sell.

1. They are losing $$ or will be shortly...


2. The owners are stinking rich, and have other business projects to tend to.

Keep the research going....

Im waiting on Approval from my lawyers, then I can find out more.

For the Opening Briefing, it seemed that the owners are looking to get into other markets.

Joe

Also could be they're just tired of it and want to move on to something else.

Definately look over the accounts and everything very carefully. They might be trying to sell a bunch of dead-beats or trouble makers.

I actually am going to go ahead and contact all of the clients just to make sure they are in good standing.

We are probably going to bid on there Virtual Clients.

Its 350 we would like to add that to our customer base.

Joe

You mind giving me the lawyer who contacted you, as I am in jersey and would be interested in teh colo and dedicated parts and I am sure my buddies NAC would be interested in the Dialup

I wasnt contacted by a Lawyer.

I was contacted by a mergers and acquistions company.
I can get some more information on the whole deal, when I get some more.

Joe

Also, be sure you take a long, hard look at their lease agreement. Some of these guys signed their leases when the floor space was extremely expensive. Now they are stuck and can't expand because Joe Blows Colo across the street is slashing prices, and the overhead is too high to compete.
If they are leasing in a multi-floor building, make certain you speek with the landlord to make certain everything is OK. SOme landlords start complaining about the weight on the floor, (Most places only allow for 90lbs sq. ft. in their lease) and the company is forced to stop expanding or to move out. (Of course, they would violate their lease if they moved out. So that can get very, very expensive.) :D

Hey,

I dont plan on taking over there facility or anything.

What my plan is to take over all of there virtual hosting accounts.

I dont want there equipment, space and or facility, just there accounts.

It makes it simple to deal with. Then we would go ahead and contact all of them, and prep them on the new system.

The whole situation is probably a total pain, but 350 clients is solid pick up

Joe

Hello,

Would you mind suggest me the road to M&A field

Where should I have my beginning, Finance, Account or Law?
If start from finance, what type of company should I work for, IPO?

Would please give me some advice by send me private message or email?
My email address: bennylai0117@hotmail.com

Thanks!!!
Thanks!!!