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  1. #1

    Mid-Sized Hosting Company for sale

    Hello All,

    I am publicly listing my hosting company for sale. The Company was established and has been filing in the state and city of NY since October of 2001. The corporation has been doing web hosting publicly since Dec of 2002. For legal reason I will not list the name of the company without an NDA effective and in place. The purchase of this sale will NOT include the stock of the corporation. The sale will include

    -the client base,
    - web site and domain name(s),
    - billing/support system, (modernbill and kayako integrated)
    - domain registrations.
    - Enom account (Domain Registration)
    - I will also include the servers if you do not wish to migrate. There servers will include a monthly fee from the NOC if you wish to use the servers already set in place

    -All servers are Redhat linux and run Cpanel/WHM
    -All servers have Fantastico + Xcontroller installed. Clients can upgrade on plan 1 and plan 2 for $1.00 extra/mo. This is to keep inexperienced users from installing and setting up massive amounts of databases and eating up server resources and space, Plan 3 and up include fantastico.
    - There are also many upgrades and add-ons to plans which are not listed in the account stats bellow, such as dedicated IPs, SSL, space and bandwith addons and so on.

    I am selling the company due to many personal reasons mostly due to the fact that I will be joining the corporate work force again. The company has a very solid client base including an estimated 75% business and 25% personal

    Forms of payments accepted currently include Visa Master and paypal. You will need your own merchant account to process payments.

    Client Base Shared Hosting

    485 Accounts at $3.00 per month
    153 Accounts paid annually @ $36.00 per year
    332 Accounts paid monthly @ $3.00 per month
    Average monthly revenue - $1455.00
    ( we only accept annual payments on the $3.00 plan, all other plans are paid monthly)

    99 Accounts at $9.95 per month
    Average monthly revenue - $985.00 per month

    25 Accounts at $19.95 per month (include 25 add-on domains)
    Average monthly revenue - $498.75

    8 Accounts at $29.95 per month
    Average monthly revenue - $239.00


    Client Base Reseller Hosting

    25 Accounts at $25.95 per month
    Average monthly revenue - $648.00

    9 Accounts at $46.95 per month
    Average monthly revenue - $422.00


    Client Base Semi-Dedicated
    1 Account at $206 per month


    Monthly income total (hosting packages only) - $3999.00

    Domain Registration
    269 Registered domains at $15.00 per year


    Account Matrix break down

    Shared Hosting -
    $3.00/mo (Plan 1)
    -300mb of space
    -3gb of bandwidth

    $9.95/mo (Plan 2)
    -1000mb of space
    -10GB of bandwidth

    19.95/mo (plan 3)
    -1000mb of space
    -25gb of bandwidth
    -25 add-on domains

    $29.95/mo (Plan 4)
    -2000mb of space
    -30gb of bandwidth

    Reseller Hosting
    $25.95/mo (Reseller 1)
    -1000mb of space
    -25gb of bandwidth
    -25 domains
    -WHM

    $46.95 (Reseller 2)
    -2000mb of space
    -60gb of bandwidth
    -unlimited domains
    -WHM


    All Accounts Include basic Cpanel Features listed
    Microsoft Front Page Extensions
    99.9% Server Uptime
    No Setup Fees
    Basic Tech Support
    Advanced Billing and Support system
    Auto-responders
    Remote Access to Web
    Online Knowledge Base
    Unlimited Email Addresses
    Unlimited POP3 Mailboxes
    Unlimited Email Forwarding
    Unlimited Sub-Domains
    Unlimited Email Auto Responders
    Unlimited FTP Accounts
    VRML Support
    Java Support
    Real Media Streaming Support
    Javascript
    Password Protected Folders
    E-mail Autoresponders
    CRON jobs
    E-mail forwarders
    Custom Error pages
    MX setting controls
    SMTP Mail Server
    Microsoft Flash Support
    IMAP Mail Accounts
    Web Based Email
    SSI
    Site Statistics
    Sub-Domain Statistics
    Mailing List
    SPAM Filtering
    Email Virus Protection
    CGI (Common Gateway Interface)
    Perl 5 Support
    PHP 4.3.1+ support
    Unlimited FTP Access
    Unlimited MySQL
    Pre-Installed CGI Scripts
    Log Database
    Pre Installed Chat Rooms
    Back up my site



    Asking Price - $85,000

    If you have any questions (as I am sure you will if you are a serious buyer) you may contact me at [email protected] Once we have an NDA in place I will be glad to talk with you and answer any questions you may have. If you are not a serious buyer please do not e-mail me. This is a formal sale. I am not taking any bids. If the price is to be negotiated it will be done so in a formal professional manner.

  2. #2
    Join Date
    Sep 2003
    Location
    Ontario, Canada
    Posts
    257
    damn i hope someday i am that big
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  3. #3
    Join Date
    Jul 2003
    Location
    UK
    Posts
    1,879
    Given that they'll have to actually support your existing pre-paid clients, this will detract from the value. Going on current conversions, the value of the customers will be around $30,000-$45,000.
    If you have a brand name, or an excellent reputation with a small client turnover rate, then this would probably push the price up to $60-70 thousand.

  4. #4
    Join Date
    May 2002
    Location
    Sunny California
    Posts
    1,679
    Wait. Am I missing something? He has $4000/month in revenue and he wants to sell the company for $85,000?



    Please tell me I'm not reading this properly.

  5. #5
    Join Date
    Oct 2003
    Location
    Newcastle Upon Tyne, England.
    Posts
    119
    Originally posted by Simpli-Erica
    Wait. Am I missing something? He has $4000/month in revenue and he wants to sell the company for $85,000?



    Please tell me I'm not reading this properly.
    Thats what I thought.

    But often bricks'n'mortar businesses are valued based on turnover, assets and 'goodwill' and fetch between 1 and 3 years turnover depending on the industry at this kind of level. My friend tells me this, he is in business selling other peoples businesses.

    Still, I would be suprised to see it make more than 1x its turnover, as its a virtual business. But you never know.

    It would be interesting to see how profitable it is.

    Good luck with the sale, anyway.

  6. I don't know if its just me but hosting company for sale is getting more common nowadays don't you guys think so?

    Maybe this is the 'IN' thing right now.
    What you can do with Cpanel ------------------> |||||
    What you can do with Cpanel XP+CpanelAPP -------> ||||||||||||||||||||||||||||||||||||||||

    Your competitors are cashing in with Cpanel XP & CpanelAPP, are you?

  7. #7
    Join Date
    Aug 2001
    Posts
    4,028
    Hey guys.... this is a sale thread remember!?

  8. #8
    Join Date
    Oct 2003
    Location
    Newcastle Upon Tyne, England.
    Posts
    119
    <snip> Yup..... :-)

  9. #9
    Thank you Mekhu,

    First the ASKING price is $85,000.
    I will let you figure out how that one works on your own.

    Second, the company includes the name and the established business. I have taken in consideration the number of new signups per day we are doing and estimated the growth of the business over one year then projected business over another year and came up with an asking price of $85,000.

    Third, For there to be over 500,000 thousand web hosts in the industry today I dont see to many of them being sold comparatively to that number so please keep that in mind.

    And Last, It would be nice to have a formal post where slander is not posted. If you have a question or would like more information that I could answer on this thread that does not require an NDA I will be more than glad to try to answer.

    Thanks,
    Chris

  10. #10
    Join Date
    May 2002
    Location
    Kingston, Ontario
    Posts
    1,573
    Chris good luck with your sale. I hope you find a big player to take you over with such a large client base to take care of, that would be a very large added weight to any support department.

    Your company has been established a long time, clients are obviously using you for a reason which is worth money itself. I don't think the asking price is out of question for anyone with deep pockets. The actual income isn't what you're buying, think about all those potential new clients to market additional services to as well, very nice.
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  11. #11
    Join Date
    Nov 2002
    Location
    Central Florida, USA
    Posts
    382
    Can I confirm the numbers. You have about 650 clients and about $4000 in monthly revenue, not profit correct?

    Do you have an approximate idea on how many of the yearly clients renew within the next three months?

    How many servers do you currently have? What kind of resources are you using?
    Rob
    Founder and former owner of SRLnet. Sold in 2006

  12. #12
    : Thanks Rampage.

    RL -

    Currently there are aprox 480 clients with 910 open active packages. I have many established web designers that have over 20 open hosting packages. And it is about $4400 in monthly revenue. We are currently doing about 10-15 new signups per week doing NO specific advertising other than where we are listed in web host search engines (which do not generate much traffic) about 80% of new clients are coming from referrals.
    There is on average 1-2 cancellations per week.

    There are 153 open annual packages. There is no easy way for me to tell the exact number of annual packages that will be rebilled in the next 3 months. I can tell you that a majority of the annual packages were ordered summer 2003. I am going to guestimate that 50-60 will be renewed in the next 3-4 months.

    There are currently 5 servers being run. 4 of which are single pentium 3 or 4 processors with 80gb drives and 80gb backup drives in all of them. All have at least 512mb of memory and normally run a server load (based on cpanel) of no more than 2. There is one Dual xeon that I currently put my resellers on that have SCSI drives in them. If you need more information give me an e-mail and I will get the specifics of each server to you.

  13. #13
    Join Date
    Feb 2004
    Posts
    227
    What is your COST?

  14. #14
    Tracert:

    That would be covered under the NDA. If you do not have experience in the web hosting industry I would not reccomend buying this business. You should have an idea in your head what it would cost to run 5 servers and support 500 clients.

  15. #15
    Join Date
    Feb 2004
    Posts
    227
    It all depends on where you host them, prices range from tiny to HUGE, experience or not, i am not telepathic.

  16. #16
    If you are interested please send me an e-mail and I will get an NDA out to you. Once the NDA is in place I will be able to dicuss more in depth the exact expenses. I did not know you were talking specificly about server costs. I thought you meant costs in general including client support, server admin, management, servers ect. Which gets a little more indepth. My servers on average are around $160 per month. If you have any other basic questions please let me know and I will do my best to answer on this thread. Please keep in mind that I am also looking out for the best interest of my clients. I have very loyal clients and I am looking for a buyer that I feel confident will take care of them and every other aspect of the business.

  17. #17
    Join Date
    Feb 2001
    Location
    Chicago
    Posts
    1,249
    I can say chris from selling my own hosting company and using the formula I used about 4 years its annual revenue x 1.5 which would get you at about 72k.

    So your estimate is not too far off at 85k.

    The problem I can say is that this is different times then before, I have seen quarterly revenue x 1.5 and monthly revenue x 1.5

    Here are three evaluations:

    4 years ago, possibly today - 48k x 1.5 = 72000
    Within the last year from my expierence: 12000 x 1.5 = 18000
    At the lowest 4000 x 1.5 = 6000

    Honestly from seeing several companies sold, in my honest opinion if you get anything more then 18 that would be very good, customer retention rate is alot less then it use to be.

    Joe
    ---------------------
    "In the end you start thinking about the beginning"
    "You shouldn't take life to seriously, you will never get out alive"
    "Every Passing Minute is another chance to turn it all around"

  18. #18
    Joe,

    Thanks for your insight. I may only get $72000 for it. However I am going to ask for 85. The word ASK is stating a "question" The question is how much will someone give me for it. The point is I have a High price in mind (which is $85,000) and do not expect to get more than that, and a low price threshold which I will not go bellow. It is sad to me that I have to say that the price is negotiable as I believe that some people today have now forgotten the art of "making a deal" (even car dealerships) I am surprised they even call them DEALerships anymore. Anyway for everyone that needs a cut and dry explanation (which looks like is the case) I will accept the highest FORMAL bid above my lowest price threshold. I am selling the integrity of my company along with the clients and you can not put an exact price on that, I do not care what formula you use. That being said I am absolutely positive that the next question that someone will ask is "what is my lowest price threshold?" Answer: If I told you this then there would be no point in "asking" for anything.

    Also there is no end date to this sale. As soon as a find a buyer that I am comfortable with in ALL aspects of turning my business over to I will end the sale.

  19. #19
    Join Date
    Feb 2001
    Location
    Chicago
    Posts
    1,249
    I understand what ask and all that stuff means, people dont care about the integrity of your company and all that stuff. Its nice to hope, but its a simple revenue formula. The rest comes with it.

    Realisticly speaking as I mentioned if you get 18 or above I would be suprised in this market, but good luck with everything.

    Joe
    ---------------------
    "In the end you start thinking about the beginning"
    "You shouldn't take life to seriously, you will never get out alive"
    "Every Passing Minute is another chance to turn it all around"

  20. #20
    Join Date
    Jan 2004
    Location
    /home/dislexik
    Posts
    820
    Originally posted by Tracert
    It all depends on where you host them, prices range from tiny to HUGE, experience or not, i am not telepathic.

    Well you could be, he doesn't know that

    Regards

    DislexiK
    "You dont learn to hack, you hack to learn"

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