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93 posts

Master Geek

Topic # 114608 25-Feb-2013 14:47
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Looking to buy hosting or design and hosting businesses from established NZ operations.
We want to grow through purchase of existing client base and have already completed a few of these over the last 18 months.

If interested or if you know of people who are interested in cashing up then contact me via PM


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933 posts

Ultimate Geek
+1 received by user: 26

  Reply # 771715 28-Feb-2013 14:16
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How would you evaluate the worth of a web design/hosting business that you're considering buying?

Who I am: multi time Ironman finisher, University of Auckland graduate, Freelancer (mainly focused on website development, message me for work).

3390 posts

Uber Geek
+1 received by user: 392


  Reply # 771720 28-Feb-2013 14:25
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Just sold one where that was a big part. New buyer may be interested in selling the design side to you but probably not hosting.


93 posts

Master Geek

  Reply # 771745 28-Feb-2013 14:48
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As a buyer i would evaluate the business being offerred in many ways to determine a price.

1  How many hosting accounts and yearly income from them
2  Appropriate data held about the client base (UDAI's, passwords)
3 Technology level of the business being sold. For example if email is offerred is it just another hosting companies settings applied or are there generic settings that mean mailboxes can be moved, managed on various machines without needing to get clients to change settings
4 Any maintenace contracts for websites held.
5 Type of websites, static, cms (type) etc
6 How much web design work has been done over the last period etc. and at what pricing
7 Accounts for the business
8 Market knowledge about the business.
9 plus more

The reality is we have completed purchases and know what others will agree on for a price and have our own internal formulas.

The seller probably needs to quit the business for their own reasons and get a fair sell price for the value of their business and we want an addition that is profitable. It does not work if either party is hiding something.

Our 14 years in this business means we have a good idea of customer behaviour and costs of client acquisition, plus some experience of effects of client base transfer.

Even pricing can be structured in many ways.
Some want the money up front
Some want more money but are willing to prove the quality of what is being sold over a few months to achieve this by sharing some risk.
Some want to quit physical assets at the same time and other dont.

Anyone is welcome to pm me to start a private discussion.

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