Results 1 to 9 of 9
  1. #1
    Join Date
    Feb 2010

    Acquiring small web host question

    I am a newbie.

    How to find out trust information for the seller?
    How to avoid losing client after take over that provider?

    Many thanks

  2. #2
    It's a gamble. There are ways of verifying business records to ensure that you're buying what the seller indicates. You should also do quite a bit of research on the company to see what kind of state the seller is leaving the company in. Using an escrow service and having an attorney draw up legal contracts will help ensure both parties remain safe. Client loyalty is a gamble though. Generally, during a change in ownership as long as the clients do not feel as if the business is turning south as a cause of the transfer in ownership they will not leave the company just because of a transfer in ownership. Clients that have developed personal relationships with their business professionals may want to keep those ties though.

  3. #3
    Join Date
    May 2009
    A good research is the basis for your decision to buy and what offer to make based on your rationale to acquire a specific operation (not to say business, as most of them are not). Calculate to lose 10-30% of the clients. That doesn't mean it has in fact to be that way but you can use it to do further estimates. Communicate to the clients what will or will not change for them and most will be happy to stay on board when they see that you provide useful services. However, for those with 'dormant' accounts it will be a wake-up call and they will cancel, but that's something your DD can reveal beforehand.

  4. #4
    1. first find out why the seller is selling his business at first place.
    2. Find if you can invest the same money to start your own business and advertise or not. if you can do this, do it.

  5. #5
    1) Perform some Due Diligence - Google Searches, Searches on WebHostingTalk
    2) Slowly integrate the web host with your site; don't make any rapid changes
    Affordable, Reliable & High Performance Web Hosting Since 2011
    Google PageSpeed | Softaculous | SSD Drives | 24/7/365 Technical Support | Instant Activation

  6. #6
    Where acquisition is very good for your business and income, it may return opposite of what you expected. Maybe clients are constantly in-demand and you would need to buy additional servers or they don't like what you offer (location, price etc..). You should do some company research and always request NDA. Staff. Shared Web Hosting | Reseller Web Hosting | IRCD Hosting | psyBNC/sBNC/eggdrop/znc Hosting
    xShellz Linux Shell & IRCD Hosting.
    24/7 Live & Ticket Support

  7. #7
    Join Date
    Feb 2010
    Thanks everyone for your advice.

  8. #8
    Join Date
    Oct 2002
    Langley, BC
    Yes, get the paperwork done properly. How small is small? If it's worth it, get a professional involved that has expertise in merger/acquisition. Usually their commission is about 5% of the total sale.
    We Have Generated Over 7 Million cPanel Backups Come Dance Together With Us Y'all!
    Offer Your Own Backup Hosting Service - SiteAutoBackup.Com (Private Label / WHMCS Ready)
    WebHostingBusinessBook.Com | | NowOpenOnline.Com

  9. #9
    Join Date
    Feb 2010
    Quote Originally Posted by jrianto View Post
    Usually their commission is about 5% of the total sale.
    Can you explain me more about this?

Similar Threads

  1. Acquiring 15 Clients from Small Hosting Company
    By in forum Running a Web Hosting Business
    Replies: 7
    Last Post: 03-19-2005, 03:58 PM
  2. We are looking for acquiring small webhosts
    By elias78 in forum Other Web Hosting Related Offers
    Replies: 23
    Last Post: 03-11-2005, 11:11 AM
  3. How to grow a small hosting company by acquiring the competition
    By web_host_4_sale in forum Running a Web Hosting Business
    Replies: 5
    Last Post: 09-15-2004, 10:43 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts