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  #1  
Old 06-02-2007, 09:15 PM
softtech softtech is offline
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host company sale price


Is there a recommended industry standard for determining a fair price when buying/selling a shell/web hosting company?
I cant go into too many details but the general scenario is this:
Almost all hardware leased and not owned so the is virtually no tangible assets involved and no real estate or office equipment.
Hundreds of useful domains mostly setup for vhosts as the primary service is irc shells.
Great service reputation with long track record of stable customer base.
Average ticket being under $20 and the current paypal/cc processing accounts to be included to make transferring subscriptions seemless.

I used to assume that a fair value would be around the value of about 1 or 2 years of net annual profits. But I think I might be over estimating things. I am just looking to see how a company value is actually calculated around here.

And before you go asking no I do not at this time have any intention of selling anything. This question is just to solve my curiosity on the subject and to have some idea for future reference.



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  #2  
Old 06-02-2007, 09:42 PM
page-zone page-zone is offline
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It used to be 10 months of gross income. Or was it net? Can't remember. Whatever it was, was way to low to tempt.

http://www.ebridgemarketingsolutions.com/

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  #3  
Old 06-02-2007, 09:46 PM
bithost(NET) bithost(NET) is offline
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An associate of mine just sold his hosting company for 12x monthly gross.

Good luck.

Bailey

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  #4  
Old 06-02-2007, 10:19 PM
crislem crislem is offline
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Quote:
An associate of mine just sold his hosting company for 12x monthly gross.
That's what I know too, 1 year.

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  #5  
Old 06-02-2007, 10:45 PM
SEOKing SEOKing is offline
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Prices truly very - although the articles I have read and the notes from prior hosting sales seem to show a range of one to three times annual revenue. Most people should be satisfied with two time annual revenue.

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  #6  
Old 06-02-2007, 11:11 PM
bqinternet bqinternet is offline
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For the average small hosting company, somewhere between 8-15 months revenue would be normal. The ones that claim to get 2 years are probably well-established with other assets.

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  #7  
Old 06-02-2007, 11:30 PM
Henrik Henrik is offline
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Maybe you should contact http://webuyhosts.com for a prospect?

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  #8  
Old 06-03-2007, 12:44 AM
nax9 nax9 is offline
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You have to remember, most buyers are only looking at the brand (its potential and image) and the customer base. Most acquisitions move all the users over to their own hardware.

Established companies with a good brand will fetch far more than just 12x monthly gross, whereas companies with issues or publicly damaged brand will probably sell for less.

Churn rate also plays a huge part in any deal.

So many factors dictate how much you can sell for, and what the market will pay

  #9  
Old 06-03-2007, 12:51 AM
dave - just199 dave - just199 is offline
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Quote:
Originally Posted by page-zone View Post
It used to be 10 months of gross income. Or was it net? Can't remember. Whatever it was, was way to low to tempt.

http://www.ebridgemarketingsolutions.com/

Lists of hosts for sale

I dont get that site, how does it work.

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  #10  
Old 06-03-2007, 01:01 AM
Aussie Bob Aussie Bob is offline
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Quote:
Originally Posted by keepr View Post
I dont get that site, how does it work.
http://www.ebridgemarketingsolutions....html#business

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  #11  
Old 06-03-2007, 01:02 PM
dave - just199 dave - just199 is offline
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Thanks bob, I completely Missed that.

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  #12  
Old 06-03-2007, 04:57 PM
The Stealthy One The Stealthy One is offline
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I just completed a couple of fair-sized acquisitions, and can confirm that 1X yearly gross is the spot-on multiple, at the present time.

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