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  1. #1

    how much does it cost?

    I'm willing to buy a company, their income
    USD Currency
    Monthly: $122.26USD (27)
    Quarterly: $32.39USD (5)
    Semi-Annually: $471.12USD (6)
    Annually: $3939.69USD (128)
    Biennially: $0.00USD (0)
    Triennially: $43.20USD (1)
    Est. Annual: $6493.01USD

    GBP Currency
    Monthly: 0.00GBP (0)
    Quarterly: 4.61GBP (1)
    Semi-Annually: 0.00GBP (0)
    Annually: 0.00GBP (0)
    Biennially: 0.00GBP (0)
    Triennially: 0.00GBP (0)
    Est. Annual: 18.44GBP

    they pay $151 USD dollars for server monthly.
    WHMCS Owned License (need to be renewed)
    Unique WHMCS theme.

    How much do you think i should pay?

  2. #2
    You need to take into consideration their renewal rate and what control panel is used. also I think the rule is if the renewal rate is below 50% walk away as you would be buying duds.

    Please anyone correct me if I am wrong. It also matters if you feel you have a chance of keeping the clients as there is always the risk you will take over the clients and then they realise this and walk away unfortunately that is just the way this business is.

    Think carefully on what you can offer them is there a usp that will keep them or are you hoping to keep them without much work?

    I would also ask for hard copies of financials screenshots of whmcs stats etc for your own peace of mind.
    From shared hosting to Excellent value Business hosting on dedicated servers.
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  3. #3
    Join Date
    Dec 2007
    It should be $2.5 - $3K
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  4. #4

    How much to pay

    If it's a really good fit and the sellers numbers are valid, I'd suggest 0.8 to 1.0 x Est. Annual: $6493.01USD. There's a lot goes into a good fit. You can review posts to this forum and see what people ask for when someone wants to sell. In the end, it's worth whatever you're willing to pay based on the info you receive and believe from the seller.

  5. #5
    Join Date
    Sep 2005
    2.5 - 3k, really? Times have changed since I last acquired a business but it used to be roughly three times the annual income..
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  6. #6
    Join Date
    Jun 2011
    Miami, FL
    Quote Originally Posted by WO Mark View Post
    2.5 - 3k, really? Times have changed since I last acquired a business but it used to be roughly three times the annual income..
    For a B&M business with revenue can be documented, is easily reproducible and isn't as cut-throat as hosting then 3x annual income would be reasonable. Unfortunately the hosting market is brutal and smaller companies would be lucky to get 1x annual income.
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  7. #7
    Join Date
    Jan 2003
    2.5 - 3k, really? Times have changed since I last acquired a business but it used to be roughly three times the annual income
    when your talking about a hosting company that has no tangible assets your basically buying the client base IE: they lease everything Dedicated servers ip space, etc, etc, its the norm.

    If they have their own infrastructure in place,own hardware own ip space, etc, etc then the pricing will fall more in line with the
    three times the annual as its a much more attractive buy for the new owners
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  8. #8
    Thank you guys, i sent by bid for $4k.

  9. #9
    Join Date
    Feb 2012
    Memphis, TN
    The figures are too low, with lack of detail. I would say take a pass on it.

    The majority looks to be annual customers, in the subscription based business without much information I would say this will end up in a quick loss. You will also have to carry the cost of the customers perhaps for a full year to even see how things will work out.

    If theres 1 thing you should not do is gauge the numbers from a WHMCS summary.

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  10. #10
    Join Date
    Jul 2002
    World Wide Web
    My advice is to invest $3-$4k in your own company, than buying another company.
    Michael Vlastos - Innovative Hosting Solutions since 2005 | cPanel, Softaculous
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  11. #11
    Join Date
    May 2011
    there is no quick and easy answer.
    One thing to note is that it is extremely difficult to find good clients. In fact, several providers pay affiliates $50 per genuine lead. So if you have 167 clients (give or take) x $50, that means that depending on how you look at it, these leads are worth over $8k -> now that is just something to think about.

    That said, I do bid on companies on here and on flippa. Here is how I approach the question

    if you are buying to merge clients with your own brand:
    0.5 x yearly profit (about $2.3k in this instance)

    if you are buying to run as your own brand, that is, you plan to keep domain, site, everything running as it is and you dont currently have a hosting company of your own:
    0.5 x yearly profit + 50% to 100% of software and licenses (as you will have to buy them anyway if you were to start one from scratch) + $500 to $1000 for the site design (if it is unique, $50 if its just a template) + something for the domain and any goodwill attached to the domain.

    to explain what i mean about goodwill, is that if there are a number of really good reviews out there, and there is seo and backlinks on several really good places, this alone can be worth thousands of dollars. This also means that your site will generate some leads on its own. Even getting something in prweb costs a fortune.

    if i didnt have a brand at all, then depending the other things i mentioned+ (software, sitedesign, seo, goodwill), it might be worth $6k.

  12. #12
    It is a local company, in passed two years they just have four clients moved out to other company and couple of refunds.

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