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Speed-Networks
Hi,

Well later on in febuary I am thinking about buying out a small hosting company, with a few clients, the guy I am considering buying out has got: 15 clients making £100/yr, I have never bourght a hosting company before, what should I be looking for?

I have no idea if he is lying or not, ive never been in his billing panel or nothink, I have no evadence that he has 15 cleints paying that much a yr.


can anybody help me out.

- Nick
Crucial Web Host
This sounds shady.

1. Get proof.
2. Get Reciepts of payments made
3. Research hosted domains (nameservers/owners)
4. Get any contracts that are in place

With that information you'll be able to make an informed decision. Anything less and you're setting yourself up for a loss.

Kindly,
Speed-Networks
thanks for the advice, i have now bourght the company's clients he had over 25 paying, and I paid him a little under £70 for them, without domain,server, or anything.

I am happy.
MarbleHost.com
Good luck! You probably made pretty good deal!
Webhostingexpress
15 Clients only £100.00 / yr
TrexMike
You made a good deal. Why cant i ever find those deals lol j/k
charlesgan
if you are familiar with this hosting business, then go ahead.
if just for profit only, and you not sure what you are doing, then dont.

probably you will end up buying things that not suites your future needs.
hanber
ask him wether the clients know that the company is being sold, what are his operations costs? who manage technical support?
Alex82
There are some tips that help to determine the price of the company you're buying, and the first one is to check the track record of the company thoroughly, its loss and profits accounts that will help you to judge the credibility of the company.
And then the calculate the price of the company that has been in operation for at least 1,5-2 years use the formula
Yearly revenue *0,85 (15% of clients don't renew) * 0,66, th edeal should be also subject to close in 30 days.
TVGHosting
Just in case you guys didnt see, he bought the company in early Feb. Good advice still....
cbn-dmhannah
Make sure you know how to keep the exisiting clients happy, communication is the key, make sure you email all of them to know that you are the new owner, and reinforce any changes if any. Make the client feel happy that they are in safe hands.
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