Time to buy again!

[serverorigin]

ServerOrigin Management Group / Express Paging, LLC.

Is looking to purchase your hosting company :)

We are looking for hosting companies with 5000+ customers and income above $4xxx/Month or $60,000/yearly.

We are looking to pay the normal three month billing cycle for the purchase per client.

Please send me a message if you are interested. We are not looking for just clients! We want the whole business/website/customers/servers/billing systems.

Willing to pay via escrow on all sales. If you are interested please email:
khatfield-at-serverorigin.com

Thanks!

[LSComputers]

You say pay normal three month billing cycle? typically when a company sells theres dont they take the monthly revenue and muiltply that by 10-18months.. Thats how most hosts sale.. I dont know how many will sell for 3X the month profit..

Hope I understand correctly.

[Decker]

That's most true, $12,000 to $15,000 for a yearly gross of $60,000 base for income without good will, etc. being taken into account is a very low estimate of a businesses worth.

At that level you should be looking at a minimum of 3 years basic with growth for value of the required offer to make an aquisition.

LS's figure, though fair is still low, unless your looking at 'bail outs'.

And most important would existing finance & commitments be transfered or static with the incumbent owners?

[serverorigin]

Guys... I understand but that is what we are offering. Maybe I should have clarified as that offer is geared more towards IRC Hosting as we offer 3 months revenue as the turnover rate is so high. Also considering that it is a very risky business that brings high fraud rates / DDOS Attacks / Non-Stop headaches that many people realize only after they have gotten into the business.

We will still consider 'normal' hosting / VPS companies but we do not purchase at 12 months. Our typical turnover rate in 12 months with 'normal' hosting subscribers isn't high but high enough we won't invest in a customer for 12-18 months. This could be due to a number of factors but considering... This is the offer we make :) I didn't plan to be overwhelmed with offers. This was merely an offer I was making as we are trying to just pick up a couple more prior to the end of the year ;)

If people do not want to sell for our prices...They don't have to.

**We are still looking though**

We are working to close on another small/medium sized IRC hosting company in the next few days so there is a market for our offer. With this offer we paid 6 months revenue with 1100 subscribers. /shrug It really depends on how well known the company is and the stability/growth. This is a fairly well known hosting provider of 5+ years so in a situation like this, it was worth to spend the extra money.



And most important would existing finance & commitments be transfered or static with the incumbent owners?

In most situations we will buy out the debt that the company may carry if it is under $10,000. Situations like these would require negotiation further on the pricing...

An example:
A company we bought last year with 700 subscribers had about $9,000 in server loans as well as about $3,000 in actual debt. We took over the debt and paid full price for the server costs. After which, we had the servers shipped to us and we moved the customers to our own equipment. We knocked 2 months off of the price per customer - at which point we technically paid around 3 months per customer. The owner was ready to get out, we helped him. He walked away debt free with cash to spare.

We lost about 60 customers due to paypal subscriptions...etc. Once the transfer was complete, we completed the sale with 630 some odd subscribers. That business is now back up to 850 subscribers. It worked out well for both of us.

[serverorigin]

3 Purchases completed.

Mod can close as we are no longer looking at this time.