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  1. #1
    Join Date
    May 2002
    Location
    Chicago
    Posts
    132

    How to purchase a hosting business

    Hi All,
    Our business plan depends on aquiring a mid sized (2K to 6K per month) hosting business soon. I have been looking around for few months. So far no positive results. Couple of times tentative agreements to purchase have reached. But the seller backed out at the end. I read somewhere that seller or buyer changing the mind at the end is not so rare thing. Mostly I have been looking at WHT, couple of other forums, bizbuysell.com etc.. Most of the hosting biz come on sale at WHT are so small I have to pay more to the lawyer to set up the agreement than to the seller. Other have an asking price with no relation to reality. Here at WHT the seller get overwhelmed with enquiries from everybody and their brother. So rarely you get a detailed responses from the seller since they cannot differentiate from from real buyers and just curious bees.

    So do you know of other potential strategies to go about to aquire hosting biz. I checked with couple of business brokers, all they have are very large ISP leads. If you are successful in selling or buying, what is the channel you used?

    Thank you for your time,

    Aji
    SupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Let the PROs handle your customer service 24/7.

  2. #2
    Join Date
    Jan 2004
    Location
    Ontario, Canada
    Posts
    2,268
    I remember seeing here a few times how people sold their companies when they weren't even planning to because a company came along and offering them a very good price. So maybe try some unsolicited offers to companies? Hope this helps.
    Greg Lubbelinkhof

  3. #3
    Join Date
    Jun 2003
    Location
    Tampa FL
    Posts
    2,378
    I run accross several deals each week , for hosts selling their companies. Your looking for $6000/mo in recurring? What sort fo terms are you looking for?
    Ceridius Networks Sales
    Email/MSN [email protected]
    Ceridius Networks - Reseller of Hivelocity Hosting
    Network Speed Test

  4. #4
    Join Date
    Mar 2004
    Posts
    1,301
    You should check with www.thewhir.com they have on their site where you can sell or buy businesses. Make offers to the companies you think are good, and make sure you ask them to provide you the financial statements im sure you know that, anyhow best of luck in finding one.

  5. #5
    Join Date
    May 2002
    Location
    Chicago
    Posts
    132
    Is there an underground host exchange network that I am not aware of? Yes, I am looking for $2000-$6000 per month recussring billing. Terms are tricky . Of course it depends on the value of the business to me. For smaller hosts it would be most of the money upfront. For larger , riskier deals it would be some money upfront some in escrow. But it is flexible, based on the individual scenarios. Anyway if you come across anything interesting, please do let me know.

    Originally posted by HiVelocity
    I run accross several deals each week , for hosts selling their companies. Your looking for $6000/mo in recurring? What sort fo terms are you looking for?
    SupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Let the PROs handle your customer service 24/7.

  6. #6
    Join Date
    May 2002
    Location
    Chicago
    Posts
    132
    Originally posted by Yaser
    You should check with www.thewhir.com they have on their site where you can sell or buy businesses. Make offers to the companies you think are good, and make sure you ask them to provide you the financial statements im sure you know that, anyhow best of luck in finding one.
    I swear I went to thewhir.com expecting some place where there is business for sale. I tried now too. couldn't find anywhere were people list companies for sale. I might be looking at the wrong place. Would you be nice enough to point me to teh exact location?

    Thanks,
    SupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Let the PROs handle your customer service 24/7.

  7. #7
    Join Date
    May 2004
    Location
    TX
    Posts
    10

  8. #8
    Join Date
    May 2004
    Location
    TX
    Posts
    10
    Originally posted by ajiabs
    I swear I went to thewhir.com expecting some place where there is business for sale. I tried now too. couldn't find anywhere were people list companies for sale. I might be looking at the wrong place. Would you be nice enough to point me to teh exact location?

    Thanks,
    http://thewhir.com/hostassets/

    try that link, I have not tried their services. good luck

  9. #9

    need to sell hosting business

    Originally posted by HiVelocity
    I run accross several deals each week , for hosts selling their companies. Your looking for $6000/mo in recurring? What sort fo terms are you looking for?
    HiVelocity, I would like to discuss more with you - I have a hosting business I want to sell with over 1k customers and over 100k in revenues last year (which will double this year).

    Thanks.


    Muna.

  10. #10
    Join Date
    Mar 2004
    Posts
    1,301
    juddcorp you beat me to it http://thewhir.com/hostassets/

    thats the link ajiabs

    Thanks Judd

  11. #11
    Join Date
    May 2002
    Location
    Chicago
    Posts
    132
    Thank you for the thwhir link. I send them the docs they requested. lets see how it turns out.

    Munachi, if you are trying to sell your hosting biz please let me know. We might able to work out something
    SupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Let the PROs handle your customer service 24/7.

  12. #12
    Originally posted by ajiabs
    Thank you for the thwhir link. I send them the docs they requested. lets see how it turns out.

    Munachi, if you are trying to sell your hosting biz please let me know. We might able to work out something
    ajlabs, I would like to discuss more with you. Provide me with your email address.

    Thanks.


    Munachi.

  13. #13
    Join Date
    May 2002
    Location
    Chicago
    Posts
    132
    You can mail methe info at aji.abraham(at)armia.com

    Thanks,
    Aji
    SupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Let the PROs handle your customer service 24/7.

  14. #14
    Join Date
    Jun 2003
    Location
    Tampa FL
    Posts
    2,378
    Ceridius Networks Sales
    Email/MSN [email protected]
    Ceridius Networks - Reseller of Hivelocity Hosting
    Network Speed Test

  15. #15
    Join Date
    May 2002
    Location
    Chicago
    Posts
    132
    Hi Munachi,
    Have't heard from you yet. I am in the process of wrapping up a deal. So if you are still interested in selling can you please contact me at teh earliest

    Thanks,
    Aji
    SupportPRO.com Quality outsourced hosting support and server administration @ affordable rates. Let the PROs handle your customer service 24/7.

  16. #16

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