14th September 2008
|
#1 (permalink)
|
Join Date: Sep 2008
Location: UK
Posts: 2
|
UK Hosting Business - What's it Worth?
I'm considering selling my hosting business. I have 2 businesses and the hosting is taking too much of my time - my family do not see much of me anymore and that needs to change.
I have an eNom account with 350 customer domains.
I have a UK dedicated server (cPanel/WHM) with 581 accounts (we have 27 resellers who have control of 433 of these accounts), giving 148 directly sold shared hosting accounts
I also have a US VPS with 60 shared accounts.
I also have a reseller account on a FTP/rsync backup server with 7 accounts.
Overall, the annual turnover from this is around 16K GBP
Most new custom is from recommendations. The majority are annual paying customers, but some pay monthly.
The business has been established 4 years and we have a good name/reputation amongst our customers.
How would I go about estimating the value of this? I'm not looking for offers right now, as I'm only considering selling my the hosting business, with it's worth being a key factor in this decision. Has anyone got any idea of it's value from what I've said above?
__________________
Registered User
|
|
|
14th September 2008
|
#2 (permalink)
|
Join Date: Nov 2001
Location: Derbyshire
Posts: 5,966
|
Generally speaking, profit will be how it is valued, TBH after 4 years, 16k isn't a lot, especially with the number of accounts. I'm sure you'll find a buyer though.
__________________
Web Host - VIP Member
|
|
|
14th September 2008
|
#3 (permalink)
|
Registered User (8) Welcome aboard!
Join Date: Aug 2006
Posts: 5
|
General rule of thumb at the moment is about 10 months profit.
__________________
Registered User
|
|
|
14th September 2008
|
#4 (permalink)
|
Join Date: Jun 2007
Posts: 950
|
Do people really sell for 10 months profit?
__________________
Forum Administrator
|
|
|
14th September 2008
|
#5 (permalink)
|
Join Date: Aug 2005
Posts: 3,394
|
People sell for anything Neil.
I'm more of the old skool 8-12x EBITDA camp, but as recent threads from some other of the more takeover experienced members, it can be anything from small multiples of Turnover, to larger Multiples of Gross, to very large Multiples of Net
J
__________________
Web Host - VIP Member
|
|
|
14th September 2008
|
#6 (permalink)
|
Registered User (8) Welcome aboard!
Join Date: Aug 2006
Posts: 5
|
Unfortunately it is the current trend.
__________________
Registered User
|
|
|
15th September 2008
|
#7 (permalink)
|
Join Date: Aug 2005
Posts: 3,394
|
Current trend for what?
< £10k businesses?
< £100k businesses?
Certainly not for any decent sized multi-staff employing going concern.
__________________
Web Host - VIP Member
|
|
|
15th September 2008
|
#8 (permalink)
|
Join Date: Dec 2004
Posts: 695
|
As a small business which can be easily integrated into a larger host's existing platforms, it is probably worth around 1 year's turnover (10-14 months). Possibly a little more or less depending on growth or client churn rates.
__________________
Darren Lingham - UK Webhosting Ltd. - (0800) 024 2931
http://www.tsohost.co.uk - affordable UK based shared web hosting since 2003
Company reg: 04977925 VAT reg: GB 833 9677 84
__________________
Web Host - Certified Member
|
|
|
15th September 2008
|
#9 (permalink)
|
Join Date: Nov 2001
Location: Derbyshire
Posts: 5,966
|
At the end of the day, it's that old cliche, it's only worth what someone is willing to pay. For many that depends on things like ARPU, factoring in that a good percentage will leave etc.
__________________
Web Host - VIP Member
|
|
|
15th September 2008
|
#10 (permalink)
|
Join Date: Mar 2002
Location: London, United Kingdom
Age: 38
Posts: 4,253
|
Quote:
Originally Posted by administrator
Do people really sell for 10 months profit?
|
Yes, others fors fixed amount per direct client, others for x months t/over, others for a random number plucked from thin air ...
The majority of "hosts" dont make any money, quite often being a "drain" on the finances from the operators "real job" - largely due to a lack of planning, foresight, business knowledge and a decent pricing strategy - from a buyers perspective why would you want to integrate into a business something that is haemoraging cash ?
Back to the OP ...
Quote:
|
Originally Posted by RX926
* eNom account with 350 customer domains.
* UK dedicated server (cPanel/WHM) with 581 accounts
27 resellers who have control of 433 of these accounts
148 directly sold shared hosting accounts
* US VPS with 60 shared accounts.
* reseller account on a FTP/rsync backup server with 7 accounts.
* annual turnover from this is around 16K GBP
|
Without knowing what you pay for any of the accounts, domains etc, guestimating gross-profit is difficult
So assuming:
10/year/domain = 3500 - cost 1750 = 1750/yr
200/year/reseller = 5400 - cost (12*100) = 4200/yr
30/year/shared = 6240 - cost (12*100) = 5040/yr
50/year/rsync = 250 - cost (12*25) = -50/yr
You'll get offers ranging from 8k to 16k depending on the reputation/name, what other software/forums/etc included, what system handles your billing etc et
__________________
Web Host - VIP Member
|
|
|
15th September 2008
|
#11 (permalink)
|
Join Date: Jan 2008
Posts: 347
|
To be fair the reason a lot of these "hosts" get sold for so much is they usually have customers on a low spec server which if its holding its own means you can move the customers to your boxes without any worry and just have the extra income.
But then Mr.Golding already knows that and so do half the people who keep out bidding me, namely that suh**** bloke (can't remember his name)
__________________
Tim - Fly High Ltd
Private Label Resellers with Free Domain reseller accounts with free migration from your old host.
Managed/self managed VPS and managed/self managed Dedicated Servers now available.
Company # 05967991
Fly High
__________________
Web Host - Certified Member
|
|
|
15th September 2008
|
#12 (permalink)
|
Join Date: Mar 2002
Location: London, United Kingdom
Age: 38
Posts: 4,253
|
Quote:
Originally Posted by FH - Tim
so do half the people who keep out bidding me
|
Then ether you or they are valueing it wrong :P
__________________
Web Host - VIP Member
|
|
|
15th September 2008
|
#13 (permalink)
|
Join Date: Jan 2008
Posts: 347
|
I'm valueing it at what its worth to us, which is the only way to value them 
__________________
Tim - Fly High Ltd
Private Label Resellers with Free Domain reseller accounts with free migration from your old host.
Managed/self managed VPS and managed/self managed Dedicated Servers now available.
Company # 05967991
Fly High
__________________
Web Host - Certified Member
|
|
|
16th September 2008
|
#14 (permalink)
|
Join Date: Sep 2008
Location: United Kingdom, Sheffield
Age: 21
Posts: 3
|
Hello,
Are you still selling this company? Mind if i pm you to chat about selling it? I might buy it or might have someone who will.
I'll message you now.
Thanks
__________________
Thank You,
Regards Joshua Nailor
DirectClanHosting.com
__________________
Registered User
|
|
|
16th September 2008
|
#15 (permalink)
|
Join Date: Mar 2002
Location: London, United Kingdom
Age: 38
Posts: 4,253
|
Quote:
Originally Posted by DCH-Josh
Are you still selling this company
|
In my extensive experience in these matters, one of the general pre-requisites to a well structured takeover deal, is that both parties at least have basic training in the usual fundamentals like being able to *READ*, I suggest you go back to the original post and spot the miscommunication ...
__________________
Web Host - VIP Member
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is On
|
|
|
|
|