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  1. #1
    Join Date
    Jul 2006
    Posts
    1,080

    Selling Hosting buisness question

    Hi

    I have been considering selling a certain aspect of my buisness. Not all of it just one aspect.

    Whats a sensible way to price the sale price, Is it X amount of months of income or what?

    Thanks in advance

  2. #2
    Join Date
    Oct 2003
    Posts
    9,264
    It all depends but "standard" tends to be around 10 months of revenue. If you're just selling off sections of it that could potentially make a difference in the price you get as well.

  3. #3
    Join Date
    Jul 2006
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    1,080
    In our case the VPS section of the buisness. Would that be 10 months profit or overall revenue?

  4. #4
    Join Date
    Dec 2005
    Location
    England, UK
    Posts
    659
    Quote Originally Posted by Dediwebspace View Post
    In our case the VPS section of the buisness. Would that be 10 months profit or overall revenue?
    Quote Originally Posted by David View Post
    ...to be around 10 months of revenue...
    10-12 months is standard, a little more if licenses and/or a brand is included, I am however doubting that is the case here.
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  5. #5
    Depends on how many clients do you have and the profit you're currently getting from your website.

  6. #6
    Join Date
    Jul 2004
    Posts
    2,360
    Quote Originally Posted by Lpal-Jay View Post
    10-12 months is standard, a little more if licenses and/or a brand is included, I am however doubting that is the case here.
    But profit gotta play a factor too. Imagine buying a huge host that is making a loss.

  7. #7
    Join Date
    Oct 2005
    Posts
    58
    Don't forget to value your domain name/traffic and other things as well.

  8. #8
    Join Date
    Sep 2002
    Posts
    522
    You can set your price at whatever you want, but something is only worth what someone else is willing to pay for it. You can always give out the details and see what kind of offers you get.
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  9. #9
    Also consider what the motives are for selling the business. If you're cutting your losses, sell it quick, but it's going to be cheap, but then again, you're cutting losses anyway.

    If you're selling it for a profit, I'd say it should be based largely on your customer base, the plans subscribed to, and the revenues associated with it. Depending on how the business is run and how plans and prices are structured, it could have 1000 customers and still operate at a loss, or have a customer base of just 200 but operate with considerable margin.

    Any bids yet? You should be able to gauge by now how much buyers are willing to pay for it.
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  10. #10
    Join Date
    Jul 2006
    Posts
    1,080
    Hi

    We have already sold what we needed to. But thanks for your advice everyone, It is much apreciated

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