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Web Hosting company's market value
| Posted by sz786, 07-07-2009, 03:02 PM |
| I am trying to find the market value of a web hosting co.
No. of active customers = 40
Earnings from existing 40 accounts is US$ 150 PM
Expenses for servers are US$ 100 PM
Company's Site has Google Page Rank 4
No. of unique visitors to the site are around 800 Per Month
The site is losing customers as sales/support requests are not be handled properly for the last 1 year.
What will be the value of this business and how is it calculated?
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| Posted by vivithemage, 07-07-2009, 03:37 PM |
| A lot of factors..how old are the clients, what kind of support is needed. Can you part with the site, and sell the clients separately, and try to sell the actual website yourself? Do you need to sell it quick, or can you wait for a better deal?
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| Posted by wb-Jay, 07-07-2009, 04:15 PM |
| Usually if you're looking to sell I would say 12 months revenue minimum. Again this would depend on what kind of packages you offer etc.
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| Posted by njoker555, 07-07-2009, 09:32 PM |
| you'd also have to look at your packages and how much space/bw you are offering at what cost - $50/month profit isn't too big and since you say customers are losing interest, that will also lower the value a lot
you may not be able to get more than a few hundred (of course the package specs and pricing still has to be considered here, this is just a random guess)
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| Posted by XeHSean, 07-07-2009, 10:40 PM |
| That is a goal but realistically, unless you have a ton of goodwill, you probably aren't going to sell your company for 12 months revenue
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| Posted by TechniSmart, 07-07-2009, 10:53 PM |
| If you have been losing clients because of not supporting them properly, then that means the business will be worth very little pretty soon. It does not take long to lose 40 customers un;ess you are actively working the business.
The PR4 is interesting though.
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| Posted by JayWiz, 09-12-2009, 01:59 PM |
| I have different approach, looking at the unique visitors are about 800 per month then i am sure you can rebuild the business again.
Learn from your mistake and make it better in the future however if you don't have desire to run the business again then you can try to resell for at least 36 months revenue.
This is just my opinion though.
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