Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Buying a hosting company, help!

[dlc2000]

Hello,

i would buy a local hosting company but this is my first time so i would undestand what i need to check on it, what suggestion can u give me to make a good deal? They have about 3 or 4 server with 1100 domains.. what can be a good price?

thx

[ORiN]

I would say it depends on what type of accounts are being offered and the price the clients are paying the current owner of the host.

[dlc2000]

average price is around 60-70$

[ORiN]

$60-70 per month or year?

[coight]

Originally posted by dlc2000
average price is around 60-70$

Gee that's helpful

[dlc2000]

the price is yearly! can i get more comment on what i need to valutate before that i buy this company? Do u think that i should move all in my actual site or is better to have 2 different site? pls give me all your impression on this thx

[poolking]

Would it be easier to just buy the clients instead of the company?

[coight]

You need to include more information $60-70 might mean they are offering 100mb of space and 500mb of traffic. On the other hand it might mean 200gb of traffic and 20gb's of space

[datacenterdirectory]

I would not buy the company because that entails assets. Just buy the clients if you can!

[dlc2000]

umm true, but if i buy also the scomapny i will have two site in internet and i can get more incoming

[Tmonster]

Besides current revenue stream you need to research also monthly or yearly growth rate.
In addition, you can find a few clietns and call them to ask if they are satisified with current service and are how long are they going to host.
Then you can search in Google for this company and check what people say about it.

[TheTop]

One thing that a lot of people forget that your maximum guarantee on the clients is their current contract term ... if they are all signed up on a monthly basis, you might be spending thousands of dollars on a lemon which might become customerless in 3 months ....

I'm not saying that it will be but juts remember that just because the guy is selling 1100 domains, doesn't mean that they will all stay with you once you take over

[dlc2000]

yes i know, but i am friend of the owner of this company and he is selling it cause the problem with the second owner, what u think should be a right price for 1100 account with a average cost of 60$ yearly? how can i calculate it?

[TheTop]

is it 1100 accounts or 1100 domains ? as 10 people can have 110 domains hosted ... that will help with the calculation


PS: never do business with friends and family

[dlc2000]

1100 domains and about 900 account