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11-16-2007, 12:14 PM #1Web Hosting Master
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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
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11-16-2007, 12:16 PM #2Web Hosting Master
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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.
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11-16-2007, 12:21 PM #3Web Hosting Master
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In our case the VPS section of the buisness. Would that be 10 months profit or overall revenue?
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11-16-2007, 07:39 PM #4Web Hosting Master
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11-19-2007, 08:05 AM #5Web Hosting Master
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Depends on how many clients do you have and the profit you're currently getting from your website.
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11-19-2007, 08:15 AM #6Web Hosting Master
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11-19-2007, 08:18 AM #7Junior Guru Wannabe
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Don't forget to value your domain name/traffic and other things as well.
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11-20-2007, 11:39 AM #8Web Hosting Evangelist
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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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11-22-2007, 05:44 PM #9Newbie
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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.Talk'n'Tickets
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11-22-2007, 05:54 PM #10Web Hosting Master
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Hi
We have already sold what we needed to. But thanks for your advice everyone, It is much apreciated