Hope you're all fairing well
I'm interested in people's differing opinions on how one would work out the "buy" value of a host, as a going concern?
I'm talking about very small ones, which are only turning over say sub £3-4k a year, and am just interested in how you guys individually would work out how much such a host would be worth paying for?
The reason I ask is that I've got a few on the table. They're only turning over sort of £1-2k per year, but the current owners are friends of mine and need some cash. I've provisionally signalled interest, and have a good idea of worth, but thought I may as well post here too
Revenue is one 'easy' way of getting a ballpark figure and 9 months looks about 'average' for these things, but you might want to look at uptake too. How fast they're getting customers and - importantly - how much the host is spending on getting those customers. Advertising can make a significant dent in the revenue of a small host.