Hosting Business for Sale

[andrew_echo]

Hi there,

Currently have an established hosting business for sale. We are currently selling due to other business and investment committments.

Any serious offers from hosts that are looking to acquire additional clients, resellers, websites, domain renewals, will be accepted. Currently bidding is between 120k-170k USD, however, all serious offers will be accepted as we are looking for a host that can best fit our business model and continue to provide the support our clients have come know and respect as their own.

Any interested parties please email andrew@echocorporate.com and I will provide you with further information as well as an information kit detailing business information and further sales opportunities.

Hope to hear from you soon.

Regards,

Andrew
Managing Director
Echo Corporate (Australia)

 

[PVT-Jordan]

I suggest that you provide some details as to your client base and equipment to potential buyers.

 

[andrew_echo]

Any interested parties please email andrew@echocorporate.com and I will provide you with further information as well as an information kit detailing business information and further sales opportunities.

Read the post.

 

[PVT-Jordan]

Andrew, I read your post...again, and I still believe that you should provide more details. You might have a greater interest, because I don't know who would even consider spending up to 170k to buy a company that they know nothing about.

 

[andrew_echo]

Jordan,

If you or anyone else would like information then all you need to do is send an email to andrew@echocorporate.com with your company information requesting further information regarding the sale and you will be provided with all the figures stats graphs and information required.

I will not post it publically and the information is only available to those hosts who seriously wish to acquire additional clients.

To satisfy your need for information there is 160+ clients valued at over $344 each per year with a growth rate of 22-25% unmarketed with upsell opportunities never utilised.

Information such as projected revenue, etc is available through the document if you are seriously interested.

Regards,

Andrew.

 

[PVT-Jordan]

there is 160+ clients valued at over $344 each per year with a growth rate of 22-25%

Thats all you needed to say

 

[Blue]

Thats all you needed to say

Exactly.
Saying that will let everyone know that you should take the 170k offer and run.
If you can get 3+ years income based on "projected revenue" I applaud you.

 

[PVT-Jordan]

Thanks Blue. I decided not to go there

 

[Exon]

I sent an E-mail this afternoon and got more information out of you by reading this post. I did E-mail you - you never E-mailed back.

Edit: I found it - it was labled as spam for some reason

 

[ANMMark]

Andrew, first let me just say, that I'm very straight forward, and never mix words.

With that said, the reason you were asked to post more information is simply due to the fact that many people will read your post, and look for reasons that make them jump out of their seat, and take you up on your sell.

People simply do not want to fire off an email to someone they don't know, and don't trust. For the following reason:

Edit: I found it - it was labled as spam for some reason

 

[Simon]

I have to say;
By asking for 3 years worth of income, one would presume you really don't want to sell.

Golden rule allows for the selling company to go from 7-9 months income, plus a nominated fee for miscellaneous issues such as branding, ad copy, etc.

I would be shocked to see you get 40k, to be brutally honest.

Simon

 

[Artashes]

Golden rule allows for the selling company to go from 7-9 months income,

Are you serious? Has it always been like that or was this number 24 months just a couple of years ago?

Best,

 

[ldcdc]

Are you serious? Has it always been like that or was this number 24 months just a couple of years ago?

Yup. Simon's golden rule is true. Getting 1 year income would be quite a good deal.

 

[icelab]

Are you serious? Has it always been like that or was this number 24 months just a couple of years ago?

Best,

Since early 2004 when we started acquiring reseller hosts, we've never paid more than 80-90% of the verified annual income. 24 months might be a good figure for a business that is not an internet service of some kind.

 

[Simon]

Are you serious? Has it always been like that or was this number 24 months just a couple of years ago?

Best,

Keep in mind, the intro costs for a "takeover company" is pretty much the price you paid for the company, all over again.

Granted, for recognised brands, the client-induced income becomes the nominal, and often unimportant fee, and the brand it's self can bring in three, five, even ten times what the actual client base is worth.

I have been involved directly in thirteen hosting company buy-outs, seven times as the buyer, and six times as either an observer, or as a friendly advisor. The 'rules' I stated above, are unwaivering with each of those as an example.

Another rule: Take your client base direct-income, and take 20% off - whether these be yearly signups, casual signups, or people who just don't like the fact that the company was purchased (even if quality remains/gains).

Here's another rule of thumb: If the company is touted as for sale in public, take another 10, or even 20% off the client based income. You can also almost guarantee, with a public sale, that client signups will drop in numbers, at least for 3-6 months, as people will be wary of 1: why the company was sold - 2: How smooth was the change of guard.

Of course, there will be those who disagree with me, which they are of course welcome to do.

If you can get one years worth of gross income for this sale, my advice would be to take it and run.

Simon