Web Hosting Talk : Advertising Forums : Web Hosting Related Offers & Requests : Other Web Hosting Related Offers : Web Hosting Company For Sale - $67,000+ Annual Revenue

[chicagohost4sale]

Small web hosting firm, located in Chicago, IL, seeks buyer for all operations and assets. Potential buyer will be required to honor all existing contracts for a 6 month period and must commit to minimal disruption of current operations during that time. Customer base consists of several long-term, loyal clients and they must be treated appropriately.

Company Profile
Total Annual Revenue: $66,700+

Shared Hosting Customers (All Annual and Quarterly Contracts) - 8 Customers
Shared Hosting Annual Revenue: $1,800

Colocation Hosting Customers (33 Monthly Contracts, 2 Quarterly Contracts and 1 Annual Contract) – 36 Customers
Average Colocation Monthly Revenue: $3,861

Dedicated Hosting Customers (Monthly Contract; VERY long term client) – 1 Customer
Dedicated Hosting Monthly Revenue: $1,200

Miscellaneous Monthly Professional Services Income: $350

Assets: Approximately $20,000 in networking equipment consisting of all refurbished Cisco switches, brand new KVM over IP devices and reboot strips for remote administration. All equipment was purchased in the past 5 months. Assets also include a number of rack shelves, more CAT5 than you’ll ever need (okay, slight exaggeration) and other data center necessities. All Cisco switches have SmartNet contracts paid for through the end of October, 2006.

Assets also include web presence, branding with professional style guides, PBX menu options for phone system created by professional voice-over specialist and intangibles such as an exceptional reputation. Our customers love us which is why we want to ensure that they are well taken care of.

All customers are housed in multiple racks at a tier 1 data center in the metropolitan Chicago area.

Average Monthly Recurring Costs (minus capital expenditures): $3,600
Average monthly recurring costs consist of $3,100 in data center fees for bandwidth, power and rack space, $100 per month in insurance, $199 in outsourced technical support and miscellaneous fees, $30 in administrative fees and $40 in referral fees.

Present build out includes approximately 84U of space not being utilized but included in the above costs so room for growth exists. In addition, available power consists of 80 Amps spread across three circuits. Bandwidth utilization is approximately 12 Mbps of 20 Mbps available and included in the above contracts. Bandwidth bursts to full 100 Mbps.

While I initially fostered the growth of this company from nothing over the past two years to its present state primarily as a hobby, it has proven to be rather lucrative as well. Due to personal reasons, I now need to sell it to focus on my soon to be expanding family. With these added pressures, I do not have the time or resources to devote to growing the business to take it to the next level.

The company requires approximately 5 hours worth of work a week and most of this time consists of basic support conducted via the KVM over IP. Support requires a maximum of one to two trips to the data center per week. However, weeks have gone by where I haven't heard a peep from the customer base. Like most colocation firms, we're busy when people are loading in equipment; otherwise, it's rather quiet.

If you wish to learn more about this opportunity, please PM me for an NDA. In your message, please include a brief description of your organization and your plans for the existing customer base. Please, serious inquiries only.

[chicagohost4sale]

Sorry I failed to mention this earlier but brokers are welcome.

[chicagohost4sale]

In response to some of the questions that have been asked, please find the responses below.

Q: Are brokers eligible to participate in faciliating the transaction?
A: Brokers are welcome.

Q: Do I need to live in Chicago to assume ownership of this company?
A: No. We do have a part-time employee who can act as your remote hands for server installation, troubleshooting, etc.

Q: How many trouble tickets do you receive per week?
A: 1 to 2

Q: Do you offer any owner financing?
A: Maybe. It depends on the size of the down payment and the terms.

[jmweb]

We are highly interested in buying you out. Please shoot me an email at john <at) chronichosting DOT com with your companys domain. Obviously we don't want to purchase a company that does not match our target market.

[chicagohost4sale]

Thanks for your PM. The NDA has been e-mailed.

[blakeadams]

We are interested in your company, whats the best way to contact you?

[FHDave]

Three more questions:

1. Which data center in Chicago are you in?
2. Are you under contract for your racks/bandwidth?
3. Will your client object it they are moved to another data center in the same are, or even to another data center in different area (e.g. East Coast).

Thank you.

[chicagohost4sale]

PM sent to you Blake with additional instructions. Thanks for your inquiry. The firm is still for sale, although we have begin initial discussions with a few potential buyers.

[chicagohost4sale]

Originally Posted by FHDave

Three more questions:

1. Which data center in Chicago are you in?
2. Are you under contract for your racks/bandwidth?
3. Will your client object it they are moved to another data center in the same are, or even to another data center in different area (e.g. East Coast).

Thank you.

Thanks for your interest. Please find my responses below.

1. We lease space from the XO Communications facility at 140 S. Dearborn.
2. We are under contract for our racks and bandwidth. However, there is some flexibility as to their duration and extent. Please request an NDA for more information by PMing me.
3. Some customers may object since they require the same IP block. However, a number of them may be willing to relocate, assuming you can minimize the downtime. I can't speak for all of them, though.

Should you like to receive more information, please PM me for an NDA. Once we receive the signed NDA, we will provide you with all the information you require.