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Thread: Buying a hosting company, help!
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10-28-2004, 04:27 AM #1Web Hosting Master
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Buying a hosting company, help!
Hello,
i would buy a local hosting company but this is my first time so i would undestand what i need to check on it, what suggestion can u give me to make a good deal? They have about 3 or 4 server with 1100 domains.. what can be a good price?
thx
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10-28-2004, 04:38 AM #2Web Hosting Guru
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I would say it depends on what type of accounts are being offered and the price the clients are paying the current owner of the host.
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10-28-2004, 04:41 AM #3Web Hosting Master
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average price is around 60-70$
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10-28-2004, 04:42 AM #4Web Hosting Guru
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$60-70 per month or year?
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10-28-2004, 05:00 AM #5Web Hosting Master
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Originally posted by dlc2000
average price is around 60-70$Clustered Hosting With Continuous Data Protection (CDP)
http://www.solidinternet.com
8 Years of hosting excellence!
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10-28-2004, 05:04 AM #6Web Hosting Master
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the price is yearly! can i get more comment on what i need to valutate before that i buy this company? Do u think that i should move all in my actual site or is better to have 2 different site? pls give me all your impression on this thx
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10-28-2004, 05:24 AM #7Web Hosting Guru
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Would it be easier to just buy the clients instead of the company?
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10-28-2004, 05:26 AM #8Web Hosting Master
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You need to include more information $60-70 might mean they are offering 100mb of space and 500mb of traffic. On the other hand it might mean 200gb of traffic and 20gb's of space
Clustered Hosting With Continuous Data Protection (CDP)
http://www.solidinternet.com
8 Years of hosting excellence!
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10-28-2004, 05:26 AM #9Web Hosting Master
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I would not buy the company because that entails assets. Just buy the clients if you can!
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10-28-2004, 05:26 AM #10Web Hosting Master
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umm true, but if i buy also the scomapny i will have two site in internet and i can get more incoming
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10-28-2004, 06:26 AM #11Web Hosting Guru
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Besides current revenue stream you need to research also monthly or yearly growth rate.
In addition, you can find a few clietns and call them to ask if they are satisified with current service and are how long are they going to host.
Then you can search in Google for this company and check what people say about it.
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10-28-2004, 06:53 AM #12Web Hosting Master
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One thing that a lot of people forget that your maximum guarantee on the clients is their current contract term ... if they are all signed up on a monthly basis, you might be spending thousands of dollars on a lemon which might become customerless in 3 months ....
I'm not saying that it will be but juts remember that just because the guy is selling 1100 domains, doesn't mean that they will all stay with you once you take over
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10-28-2004, 07:28 AM #13Web Hosting Master
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yes i know, but i am friend of the owner of this company and he is selling it cause the problem with the second owner, what u think should be a right price for 1100 account with a average cost of 60$ yearly? how can i calculate it?
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10-28-2004, 07:57 AM #14Web Hosting Master
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is it 1100 accounts or 1100 domains ? as 10 people can have 110 domains hosted ... that will help with the calculation
PS: never do business with friends and family
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10-28-2004, 08:00 AM #15Web Hosting Master
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1100 domains and about 900 account
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10-28-2004, 08:13 AM #16Newbie
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dlc2000,
I think that its your own company, which you want to sell...
still thinking......
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10-28-2004, 08:23 AM #17Web Hosting Master
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no thank you i dont want sell nothing and i only wondering how to buy a new company, but all the reply that i get till now are out of topic! thx anyway
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10-28-2004, 09:08 AM #18Junior Guru Wannabe
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$60*900accounts= $54,000 yearly income or $4500 monthly income
Follow your plan to determine where on the timeline your breakeven point is.
If it's a year then say $45-50k, if it's a quarter $10-$12k, etc
NOTE All calculations were done early in the morning and without any coffee in my system !
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10-28-2004, 09:11 AM #19WHT Addict
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Originally posted by MAndrew
NOTE All calculations were done early in the morning and without any coffee in my system !
You pour coffee in your system? How does that effect the systems performance?Small. Local. Personal. Design | Development | Hosting | www.PortEighty.biz
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10-28-2004, 09:39 AM #20WHT Addict
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Originally posted by Steve_Oaks
You pour coffee in your system? How does that effect the systems performance?Web: www.explosivefx.com | Mail: me[at]nemelization.com | AIM: Nemeliza | MSN: me[at]nemelization.com
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10-28-2004, 09:42 AM #21Junior Guru
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Originally posted by TheOtherOne
Makes it run like windows.
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10-28-2004, 11:58 AM #22Junior Guru Wannabe
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Guess I walked into that one
Back to the original topic...
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10-29-2004, 06:14 PM #23WHT Addict
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Re: Buying a hosting company, help!
I think you already own a hosting business. Right? If so, do not evaluate the new company in vacum. Meaning don't try to find out how much this new business is valued to somebody else. Instead try to do the NPV analysis (break even , IRR whatever is your favourite metric) of your existing business first. Then try to do the same of the joint company once you buy the new company. The joint company company analysis should include the savings you might realize in marketting, tech support, software licenses, server, bandwidth etc.. The difference is your starting point. But when you negotiate with the seller you use the stand alone analysis of the new company. Which should be less than the value of the company to you. If you get it for any price less than your value (the delta) you come out as winner. Also try to quantufy the startegic value of eliminating some local competition..
Good luck with the deal..
Thanks,
Aji
Originally posted by dlc2000
Hello,
i would buy a local hosting company but this is my first time so i would undestand what i need to check on it, what suggestion can u give me to make a good deal? They have about 3 or 4 server with 1100 domains.. what can be a good price?
thxSupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Leaders in 24/7 tech support for web hosting industry since 2005.
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10-31-2004, 08:49 PM #24Web Hosting Master
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i got more info on the company, it are 1100 account for a total of 60.000$ yearly you should remove the domain cost, server and tax
so what u think is a right price for this company? it have 1 year of activity and the account renew will start right this month
thx
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10-31-2004, 09:05 PM #25Junior Guru Wannabe
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Also why is this host leaving? I would make sure you find this out as well.
Joel McLaughlin - Cheap Web Hosting