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I really think you should be looking at the business overall, not just the number of clients
One role I have with one of my current contracts is to value businesses
The number of clients is usually more of a selling point from the seller, rather than of interest to the buyer, however the buyer is normally interested to know the size of the previous and current customer base
Last year, 2008, I was involved in the handover of about 10 businesses to franchise
The figures available to the franchisee are turnover and number of customers per month
In most cases this is the last three to five years, excluding all or part of the current year
It is then up to the franchisee to determine if that information is correct and accurate, and this forms part of the due diligence process
In most of the cases the turnover and customer count was falling, hence the move to franchise, and the companies shift of risk from the themselves to someone else
In terms of website hosting
There is a big difference in the valuation of a business with :
up to 10 clients and an annual turnover of £2500
up to 1000 clients and an annual turnover of £2500
and that's before we even get to the costs and margins!
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m8internet.com
Last edited by M8INTERNET; 1st January 2009 at 11:00 AM.
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