Not sure this is the correct forum to post this but I really couldn't find one that
fit the post correctly, Mod, please move this to where it belongs if I made a mistake please.
I need to know the feasibility and suggestions on how to go about selling an internet business. I'm thinking some of you may have done this. I have a very profitable game server business with no debts and about $70K (current street value) in servers. My ebit is about 6000 a month currently so I cant really sell it the conventional way I see these things being sold (i.e. customers only or 1 or 2 boxes and customers there are 45 dual cpu boxes all collocated in dcs around the country.)
Anyone have any suggestions as to where/how to market the business for sale?
Really i thought 6K a month profit was decient but I supose everything is relative.
I meant when i said that, its not a small 2 or 3 box business its a larger business with hundreds of customers servers I dont think i could do what I normally see people doing and thats selling the customers off or a small 2 or 3 server business assets and customers. Its larger than that. Not huge but larger than someone saying ok ill write you a check for 8K or something.
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EBIT of $6,000 a month and profit of $6,000 a month are very different.
Definition of EBIT
Earnings Before Interest and Taxes. A measure of a company's earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes. EBIT excludes income and expenditure from unusual, non-recurring or discontinued activities. In the case of a company with minimal depreciation and amortization activities, EBIT is watched closely by creditors, since it represents the amount of cash that such a company will be able to use to pay off creditors. also called operating profit.
Definition of Profit
The positive gain from an investment or business operation after subtracting for all expenses. opposite of loss.
You might want to contact a broker such as Tom Millitzer tom @ com-broker.com
The focus will likely be on the gross revenues and the contribution to margin; rather then the capital spent on the hardware.
Suggest that you get non-disclosure agreements (NDAs) from anyone expressing interest in your business.
Document everything -- colo contracts, server support contracts, customer contracts, how to maintain the servers, how to market for more customers, potential pitfalls, etc. Disclose everything
Get your financial statements perfectly straight and clear before you engage anyone -- if you can, have your bookkeeper proivde audited financial reports.
Perhaps the most difficult is to keep all emotion out of it. It doesnt matter if you have worked your butt off for the last two years, that you have toiled and troubled over it 18 hours per day. Think of it as a piece of paper that you are selling, a pure and simple financial transaction.
Last edited by Dennis Nugent; 11-16-2006 at 01:04 AM.
Well I don't think you have too much to worry about, put your ad up in the other related offers forum and see what comes of it.
Maybe see what GriffinRun did, they just recently sold their business (which is probably near the same size or bigger) which was in debt so I don't think you'll have too much to worry about if your business is doing well.
Well, your cost is only the pure operating cost. you said you have about 70K of servers, so what you need to do is figure out the amortization of that equipment and put it into the monthly expense. You shouldn't be considering the 70K of equipment as a one time thing.
But as a note, if there is no debt and 70K (street value) for the equipment, then your minimal price should be set at 70K because that will be the value if you jsut liquidate all the equipment.
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