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  1. #1

    Arrow Profitable Hosting Company for Sale - 550 Clients

    Overview
    After running this hosting company for about six years, we have decided to sell in order to pursue other opportunities. The company has been professionally run and has been profitable since the beginning. We do not allow adult content or illegal activity and we have carefully weeded out problem customers along the way. Customers have been well cared for and are very happy with our service. We do very little advertising, so most of our clients have come to us by referral. We are looking to sell to a company with a good track record who will take excellent care of these customers.

    Asking Price
    We are asking $90,000 for our company, and are not interested in entertaining offers that are substantially less than that amount.

    Technologies
    We offer shared and reseller hosting accounts. We also host a few clients on fully managed dedicated servers who outgrew their accounts on shared servers. The technologies we offer include:
    • OS: RedHat Enterprise Linux, CentOS
    • Control Panel: cPanel
    • Databases: MySQL, PostgreSQL
    • Scripting: Perl, PHP, JSP/Tomcat


    Servers
    All servers are leased, and are at three data centers in Dallas: Colo4Dallas, The Planet, and SoftLayer. We presently have 10 shared servers, 5 dedicated servers, and 1 backup server. Servers are very lightly loaded, and uptime is excellent. The buyer could easily condense the shared and reseller accounts onto 4-6 high-end servers (instead of 10).

    We run nightly cPanel backups on all servers, and R1Soft CDP backups every 4 hours on our shared servers.

    What is Included
    We do not want to sell the company in pieces. The sale includes:

    • Approximately 550 clients
    • eNom account with about 630 domain names
    • Working Web site with domain name
    • Working ModernBill (1000-client license) with all billing data
    • PayPal account with subscriptions for PayPal customers
    • Assume the month-to-month leases on all our servers (of course, after the sale you can move clients to your servers and cancel these leases)
    • R1Soft licenses to backup 10 shared servers


    Revenue and Expenses

    Historical Revenue
    Code:
    Period              Revenue
    Calendar Year 2005  $43,702
    Calendar Year 2006  $62,104
    Calendar Year 2007  $76,318
    Calendar Year 2008  $85,783
    	
    First Half 2008     $43,694
    First Half 2009     $45,474
    Current Revenue
    Code:
    Item                    Number  Annual Revenue
    Shared Hosting Plans    306     $22,400
    Reseller Hosting Plans  232     $43,850
    Dedicated Servers         5     $13,200
    Domain Names            628      $6,250
    SSL Certificates         27        $600
    
    Projected Annual Revenue        $86,300
    Current Revenue Breakdown by Billing Period
    Code:
    Billing Period  Amount per Period  Annual Revenue
    Monthly          $4,075 x 12 =     $48,900
    Quarterly        $2,275 x 4  =      $9,100
    Annual          $28,300 x 1  =     $28,300
    
    Projected Annual Revenue           $86,300
    Approximate Current Expenses
    Code:
    Item                        Annual Expense
    Server Leases (16 servers)  $31,800
    Domain Name Registrations    $5,100
    SSL Certificates               $250
    Merchant Account Fees        $3,550
    	
    Projected Annual Expenses   $40,700
    Projected Annual Profit
    At our current billing rates and expense structure, our projected annual profit is $45,600, or about $3,800 per month. Of course, your expenses would be somewhat different from ours, but this gives you an idea of our company's profitability, as currently structured.

    How to Get More Information
    We will not be using forum posts or PM's to discuss this sale.

    The ideal buyer will have several years of experience in providing hosting services with the technologies we currently offer, and will have the financial means to make a transaction of this size. We only want to discuss this sale with qualified buyers, so if you are interested in speaking further with us, please complete the brief qualification form at http://www.hostforsale90k.com. If you meet these criteria, we will e-mail a non-disclosure agreement to you. After that agreement has been signed and returned, we will be happy to answer your questions so you can make an informed offer.

  2. #2
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Based on those numbers, we would be willing to offer $45k. Of course, that is contingent on seeing when those annual customers are due and things like package/pricing and average turnover/new signups.

    If interested, give me a shout.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  3. #3
    Quote Originally Posted by AH-Tina View Post
    Based on those numbers, we would be willing to offer $45k. Of course, that is contingent on seeing when those annual customers are due and things like package/pricing and average turnover/new signups.

    If interested, give me a shout.

    --Tina
    seems like you missed a part

    Asking Price
    We are asking $90,000 for our company, and are not interested in entertaining offers that are substantially less than that amount.

    just incase you missed that, meantime, this seems like a very high end offer, and a high end company, nice to see, very crazy to see from such a lower end company in the making , but nice, best of luck!
    http://www.caperhosting.net - web/shells/ircd/shoutcast hosting!
    Live Chat sales/support on website
    WHMCS billing system and client login
    CaperHosting.net We care about everyone!

  4. #4
    Join Date
    Jan 2006
    Location
    127.0.0.1
    Posts
    681
    An offer is an offer.

  5. #5
    Join Date
    Feb 2004
    Location
    UK
    Posts
    1,429
    Hi

    I agree with Z5-Karl, the company only has profit of 45K for the year and no fixed assets (ie everything is leased), If I were in the market to be acquiring another host, I would probably look to make a similar offer.

    OP - good luck with the sale

    Regards

  6. #6
    Join Date
    Oct 2004
    Location
    root
    Posts
    870
    Quote Originally Posted by admin-caperhosting View Post
    seems like you missed a part

    Asking Price
    We are asking $90,000 for our company, and are not interested in entertaining offers that are substantially less than that amount.

    just incase you missed that, meantime, this seems like a very high end offer, and a high end company, nice to see, very crazy to see from such a lower end company in the making , but nice, best of luck!
    You posted from the wrong username, and there is no need to be rude about a bid someone posted.
    Nick Rose | BudgetVM
    BudgetVM Xen VPS with Solus
    Asia and Europe Hosting Specialists
    LA to Asia <150MS | Amsterdam within Europe <60MS

  7. #7
    Quote Originally Posted by bdwarr6 View Post
    You posted from the wrong username, and there is no need to be rude about a bid someone posted.

    He just quoted the original post. It doesn't mean he's the seller.
    Bobby - PreciselyManaged.com - Precision Hosting Solutions
    █ Enterprise Shared, Reseller, VPS, Hybrid, and Dedicated Hosting
    █ SpamExperts | CloudLinux | cPanel | Bacula + R1soft | and more!
    █ Full proactively managed, and we specialize in hosting small web hosts

  8. #8

    Exclamation Corrected Projected Expenses and Profit

    While working up server details for inquirers, we discovered that the initial post overestimated server expenses by almost $3,000 per year. Accurate current expenses and profit are as follows:

    Code:
    Server Leases (16 servers): $28,900 per year
    Projected Annual Expenses:  $37,800
    Projected Annual Profit:    $48,500 (a little over $4,000 per month)
    We apologize for any confusion this has caused.

  9. #9
    The sale of our company closed today. Thank you to all the great folks who participated; we really enjoyed interacting with you. Best wishes to all.

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