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  1. #1
    Join Date
    Oct 2000
    Posts
    557

    Question How much my company worth?

    OK,

    Since I'm very anxious to take overseas Master of Business Administration, I'm thinking to sell my hosting company and use the money for it.

    Currently I have about 550 clients billed yearly @ $59.95/year, 15 WHM resellers @ $39.95 billed monthly. About 100 clients also registered their domain name through our service @ $24.95 per domain per year.

    Next renewal date for yearly plan will start on Sept 2002 and so on. Average revenue since Sept 2001 'til now is $3000 per month. On average, new signups are 55 accounts per month. Most of them referred by existing clients.

    Operational cost: 1 colocation box cost $200 per month plus 1 dedicated box cost $120 per month.
    On average there's 3-10 support requests per day.

    This is a sale for domain name, hosting accounts, next domain renewal as well as 1 colocation box.

    In you opinion how much my company worth?

  2. #2
    Join Date
    Jul 2002
    Location
    UK
    Posts
    169
    I would say about $100,000. But your more likely to get around $75 - 80k.

    Just my 2 cents.

  3. #3
    Join Date
    Nov 2000
    Location
    Dundee, UK
    Posts
    1,366
    If you allready have a succesfull business why dont you just keep doing it tsther than doing courses?

  4. #4
    Join Date
    Jul 2002
    Location
    Nyc
    Posts
    61
    That seems very sucessful I also think you should stick with it and continue to let your buisness grow.
    DeathLorD
    Aimlayer6918
    Icq:77978393

  5. #5
    Join Date
    Apr 2002
    Posts
    375
    Use it as a case study for you MBA studies. You can kill two birds with one stone, so to speak.

  6. #6
    Join Date
    Oct 2000
    Posts
    557
    Originally posted by SplashHost.com
    If you allready have a succesfull business why dont you just keep doing it tsther than doing courses?
    heh??
    Depending on my friends experienced, if you hold MBA title, you can get $8K - 10K basic salary. And best yet, generally you only work eight hours per day and so we can have more time with our family. So far although I have 2 staffs to help me operate this service I must connect at least 10 hours per day to monitor our helpdesk performance.

  7. #7
    Join Date
    Nov 2000
    Location
    Dundee, UK
    Posts
    1,366
    But arent you making more than that allready? and with 3-10 tickets probably working less.

  8. #8
    Join Date
    Oct 2000
    Posts
    557
    Originally posted by SplashHost.com
    But arent you making more than that allready? and with 3-10 tickets probably working less.
    Yes, that's one of the reason why I did not simply post an offer to sell here.

    Btw, I just searched my site at google and found more than 400 sites put a link to my site. And so far I see NO bad reviews about my service. I though it's a good additional value.

  9. #9
    Join Date
    Jul 2002
    Location
    Fair Lawn, NJ
    Posts
    21
    1 - 1.5 X your yearly revenue is a good estimate for what your company is worth. What you actually get may be less, especially with the current economic conditions.
    TroubleFree SysAdmin/CP Programmer
    https://admin.trouble-free.net

  10. #10
    Join Date
    Apr 2001
    Posts
    230
    These are not very high margin accounts at $5.00 a month. A lot will depend on you customer mix, solid busiesss customers will bring a little more. With these low margins I would say you would be lucky to get .5 X your yearly revenue in this ecomomy. If the customer base has been around for more than 1 year that will add a bit to the value.

  11. #11
    I would just keep the company if I was you, looks like a good investment if you are not geting millions of complaints an hour.
    Kevin L. - WiseOnline Solutions
    1.866.947.3478
    Under New Management
    AIM: WiseSupportKev

  12. #12
    Join Date
    Oct 2000
    Posts
    557
    Originally posted by HostingDirect
    These are not very high margin accounts at $5.00 a month.
    ehm..not really..
    I use cogent base box and since I did not overselling bw quota so far on average my client only spent 10-250MB bw usage per month. Thus the operational cost for each client only $1 to $2 per month.
    Last edited by sodapopinski; 07-25-2002 at 01:30 AM.

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