I am in the process of announcing that i have my hosting company for sale. Does anyone have any advice on this subject? I have been in business for eight years now (i have decided to sell due to deteriorating health issues) and i have never given any serious thought to it, from either a sellers stand point, or a buyers stand point.

Thoughts racing through my head:
What to watch for as far as scams/dishonest people/how you can be exploited.
Should you sell yourself, or through a broker?
Where to sell it (i came here actually as a recommendation on where to sell it) - forums, or websites focusing on business sales.
The standard expectations for calculating value.
All of the other hundreds of factors i have not though of yet. :D

Just in case it matters i have 119 domains (so that should give you an idea of how big i am as i am sure where to sell, and selling yourself or not do depend on size)

How much do you want for it?

I suppose some companies have been sold through the marketplace on WHT. You can review those threads and probably will get your on thoughts on that

I will give a little more detail that may help anyone with advice get a clear picture of how we do things. We Have always been a very hands on company, so the big automated, fix it yourself, kind of hosts may not want to get involved. I am sure there are sites for selling that are more focused on resellers, rather than hands on companies.

Brief Company History
I have been in business for about 8 years, and the company has no debts or lawsuits (nor has ever had any lawsuits or even any registered complaints).*
*
Domain/Hosting Specifics
*
Our hosting is through a high end well known hosting management company, so no hardware in the sale.
Apache with PHP and MYSQL, and Plesk Control Panel.
*
119 Total Domains Hosted ( $4827.10/month or $57,925.20/annually )
30 Internal Use Domains ( used for marketing etc. –do not include these in your initial offer )
*
Billing Frequency: (see clients snapshot below for more details
· 97 Domains monthly ( $ 4827.1/month )
· 6 Domains quarterly ( $299.70/month )
· 1 Domains biannually ( $49.95/month)
· 8 Domains annually ( $ 313.70/month )
*
Zero Dedicated IP Addresses
Zero Reseller Accounts
All Located In the US
We average over $2000/month updates – (over 8 years)
Our billing has been through QuickBooks,
Support has been through website/email/phone numbers contacting us directly.
We bill out some of the clients ourselves, and we also take credit cards for many, and bill them monthly.
Access to 108 of our clients Domain Names, (12 they manage and are completely responsible for).

I suppose some companies have been sold through the marketplace on WHT. You can review those threads and probably will get your on thoughts on that

How does the marketplace exactly work? I am not familiar with it at all.

You can place an advertizing at your own website that it is going for sale. So may be one of your customers will be interested to buy your company. Also, you will manage to warn clients to be ready for the future changes acting in such a way.

How does the marketplace exactly work? I am not familiar with it at all.

You will want to read the marketplace rules here: http://www.webhostingtalk.com/announcement.php?f=97&a=68

Then post the details of your sale here: http://www.webhostingtalk.com/forumdisplay.php?f=97

I don't think you should sell it on a forum, you are going to be looking for $xx,xxx money for it, and very few people will be willing to pay that on a forum.

You will want to read the marketplace rules here: http://www.webhostingtalk.com/announcement.php?f=97&a=68

Then post the details of your sale here: http://www.webhostingtalk.com/forumdisplay.php?f=97

What would you say is the best way to announce this to my clients. Basically nothing will change, except that the company that i have decided to move forward with is in a neighboring city, and they have much bigger support base than i do).

Basically i am having to sell because of my health, and i know i could not give the required support as i just don't know when it will strike and "take me out" for a while.

So i thought my renouncement would focus on increased support.

What price you are looking for ?

Hey whfsk,

Welcome to WHT! It's unfortunate to hear your health is forcing you to sell...

About 8 years ago I sold off my small hosting company of 400 accounts. I found the seller on here and to this day I still refer clients to them. My point is this place is a great place to find a legit seller.

A couple of random tips based on your posts:

People around here are going to toss you out a formula for your business. Keep in mind that while the market does have its "price range"... your business is unique. I sold my business for more money then the "calculation" said I could because like you, I was in business for years. I had a real personal relationship with my clients and almost no cancellations. Someone looking to buy you will likely see some value in this... or the should.

I believe your business is in a better position then most due to the high amount of monthly payments you have. The fact they're so large is pretty impressive as well. I'd keep this in mind.

DO NOT notify your clients of a sale until it is over. This is not a rule but more my opinion. Any form of change is bound to raise some questions or concerns for some of your clients. For your sake, I'd say it's best to address these after the deal is signed and money exchanged.

When it comes to contacting your clients about the sale, be honest. Tell them your health is hampering with your level of service and you only felt it fair to provide the best for them. Unfortunately that meant finding a more reliable company to manage things. Attempt to answer general concerns in your initial email announcement. Questions may range from "Will my price go up?", "Will the contact # for support change?", etc. The idea is to announce the sale and lessen any panic.

Your company makes close to $60,000... I personally wouldn't sell for much less. Others may think I'm crazy but stick to your guns. Find a price you want and don't budge. The lowball offers will fly around here and so to will the "You're crazy...", "You'll never sell" comments. But don't worry, a seller is out there.

When you do find a potential seller it all comes down to signing contracts, NDA's, speaking with them on the phone, judging their character, Googling the owner, company, etc. Basically it's research, gut feelings and covering your butt legally.

Anyways, sorry for the big wall of text. It's like verbal diarrhea :D

whfsk,

I sold a hosting company on here a few years ago. The company had a few more domains than yours, and had revenue within 10-15% of yours. I created an ad on WHT that listed the details that I was willing to reveal.
Once the post was up, I emailed the owners/managers of a few of the companies on WHT that I considered the best of the best.
In the end, I had quite a few offers, two of them from the companies I had emailed.
I ended up selling to one of the companies that I had emailed directly. After some time of negotiations, the transaction went smoothly.
If you have any other questions feel free to PM me.

Take a look at some of the other sales in the offers forum below and use that as a template for how to sell your company on those forums