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  1. #1
    Join Date
    Feb 2010
    Location
    Windsor, Ontario, Canada
    Posts
    213

    Selling Company - Questions about the process?

    I'm in the process of selling my web hosting business and I am using escrow.com.

    I would like to know what the normal process and sale type to use while doing this. I assumed the best choice would be a "Domain Transfer and all content" but the buyer insists on using "Server Hardware" and for me to input a fake made up shipping number once he escrows the money. I'm a bit worried because he said the deals off if I don't do it that way because I can just put the domain transfer through and than not give him the business (clients, website, ect..). Its not that I don't trust him I just want to make sure I cover my ass and don't set myself up for a scam of some sort.

    Also wondering how the process works after the escrow is funded. Do I just give him all the information at once or do I just give him whmcs, and maybe server access?

    Any input / experiences from anyone who sold a business in the past or know how it works would be great I want the transaction to go smooth and be safe for both of us.

    Thanks!

  2. #2
    Join Date
    Nov 2006
    Location
    USA
    Posts
    1,265
    Quote Originally Posted by Varcoe View Post
    I'm in the process of selling my web hosting business and I am using escrow.com.

    I would like to know what the normal process and sale type to use while doing this. I assumed the best choice would be a "Domain Transfer and all content" but the buyer insists on using "Server Hardware" and for me to input a fake made up shipping number once he escrows the money. I'm a bit worried because he said the deals off if I don't do it that way because I can just put the domain transfer through and than not give him the business (clients, website, ect..). Its not that I don't trust him I just want to make sure I cover my ass and don't set myself up for a scam of some sort.

    Also wondering how the process works after the escrow is funded. Do I just give him all the information at once or do I just give him whmcs, and maybe server access?

    Any input / experiences from anyone who sold a business in the past or know how it works would be great I want the transaction to go smooth and be safe for both of us.

    Thanks!
    I do not have any personal experiences, but it seems odd to me you are asking for community feedback when you should be contacting the escrow.com support team.

    They would be the ones best able to assist you in ensure you have it setup correctly.

  3. #3
    Join Date
    Feb 2010
    Location
    Windsor, Ontario, Canada
    Posts
    213
    Quote Originally Posted by leckley View Post
    I do not have any personal experiences, but it seems odd to me you are asking for community feedback when you should be contacting the escrow.com support team.

    They would be the ones best able to assist you in ensure you have it setup correctly.
    I did contact them and they told me to use a full domain transfer or milestone transaction. I'm asking a community who may have sold a company in the past and know the best way to do so.

    Just because escrow.com has support agents doesn't mean they know about selling a web hosting company. I'm simply asking someone for advice on how to do this the correct way.

    Don't tear my head off for being cautious

  4. #4
    Join Date
    Feb 2005
    Location
    Kalamazoo, MI
    Posts
    1,146
    Quote Originally Posted by Varcoe View Post
    I did contact them and they told me to use a full domain transfer or milestone transaction. I'm asking a community who may have sold a company in the past and know the best way to do so.

    Just because escrow.com has support agents doesn't mean they know about selling a web hosting company. I'm simply asking someone for advice on how to do this the correct way.

    Don't tear my head off for being cautious
    It sounds like the Escrow agent gave you the recommendation of using a milestone transfer as well. Based on both of your hesitations it sounds like that may not be a bad way to handle things. Good Luck with your sale. Hey if a buyer is making you feel uncomfortable, then find a new buyer.
    Last edited by Zachary McClung; 01-03-2014 at 04:19 PM.
    Synersis Media | Boutique Technology Marketing Agency

  5. #5
    Join Date
    Feb 2003
    Location
    NY
    Posts
    11,521
    Quote Originally Posted by Zachary McClung View Post
    if a buyer is making you feel uncomfortable, then find a new buyer.
    I agree with Zach. Don't do a deal if you're not comfortable with who you are dealing with and what you're dealing with.
    Doug, Sales Leader
    VPS | KVM SSD & SATA VPS | Dedicated Servers | Colocation
    99.999% Uptime | 24x7x365 Support | Global Data Centers
    www.bigbrainglobal.com | Big Brain Global Networks

  6. #6
    Join Date
    Dec 2013
    Location
    Sydney, Australia
    Posts
    15
    I actually wrote a little blog post about things I learnt in the process - buyers are picky!

    Are you using an NDA? Do you have agreements in place?

    I gave read-only access to WHMCS after a deposit was made (to view reports, orders, limit client access, etc) and supplied bank statements, PayPal statements, etc.

    Do not do any transfers until the full payment is made. Sign an agreement that states that after the amount is paid to hand over everything.

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