Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Credit cards payments & selling your hosting company

[midnightz]

Greetings,

I have a few questions regarding credit card clients and Paypal clients with periodic information that bills yearly and monthly. I am prepping to sell my hosting company after 5 years and wondering how is the best and most accepted way to transfer the clients financial info or do you let the new owner deal with that?

I will not give over my gateway as it is connected to my SSN and TIN numbers to protect myself.

This is one of the last steps in prep of selling and I am stuck here as I want to protect my clients privacy and information as that is key.

Thank you for any replies and have a good day.

[okihost]

I would not do anything without talking to a lawyer.

[midnightz]

Originally Posted by okihost

I would not do anything without talking to a lawyer.

Thank you very much for your reply. I did that as well. I have been suggested do to accounts that include schools and other e commerce driven sites to sell the clients and have the buyer be responsible for capturing the info on the next periodic billing date.

I was also suggested by my lawyer that the web identity that is created is well known and respected and should be a option in purchasing the clients.

What is the average sell time (if you know) to sell off a company? I have consolidated the clients very tightly for a quick and easy migration.

Thank you

[ameeriklane]

I'd say sales cycle can vary, but having things already in order certainly helps, and it sounds like you are doing that. I think the TIN goes with the business, unless you are seling just the clients and trademark. It may help to have audited books or some other reliable method of cutting down the due diligence process.

[JohnSH]

Usually when a business sells, when it is incorporated everything comes with it and they change the info.

If it is a personal account and you somehow got a merchant account with your own TIN, then you would basically not give that up.

But it is most likely best of course to seek lawyer advice.

[midnightz]

Thank you everyone!

Maybe when this is done, I can take a vacation after 5 years of feeling like a ER doctor on call (many know that feeling).

We checked with our lawyer and other resources and this should be a easy sales and transfer as its only the client base and not hardware. We have had some of the clients for 5 years as we built a very friendly hosting company, they know me by name as many old-timers email me direct. This will be strange, but my back will love it

We do have branded websites that also have a high potential for income with adsense. We also own the rights for the imagery of the main business site. This was the only on top negotiation to concentrate on during the sale.

We have consolidated out clients and out legacy of three billing systems as we started from a simple sign up page to MB

I really want to again "Thank" the users that posted to my thread.

Have a a wonderful day!