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What do you keep in mind when acquiring hosting companies?
A lot of providers here probably acquired hosting companies here. What do you keep in mind when acquiring such business? Like customer retention, business size, etc. How do you determine the price of such companies? Also if the provider is trying to do fraud business with you like few imaginary clients with made up invoices, orders, etc. How do you determine that? Thinking about acquiring some hosting business of small sizes.
Comments
I keep in mind is it the @Boogeyman ???
Look up their reviews, look at their customer service? prices for product.
Do they want to be sold.
The bigger question is how much is their business worth to you?
“For fifteen years, everybody told me I was making it up. Everyone said it was just a story. There's no such thing as the Boogeyman. But I was right.”
Do they want to be sold.
The bigger question is how much is their business worth to you?
And what about made up customers thing? Acquiring business take time to find out these things? eh?
At some point I would think information will have to be disclosed.
Ease of integration...do their operations easily integrate into your existing operations (assuming combining operations...). Software, offerings, support methods, locations, etc...
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Another thing I forgot. How do you match their package with your current packages? Like they provide different specs, prices, etc.
Well look at what they offer. Is it the same as you?
What about their software.
Are they using WHMCS or something else?
Are they using cPanel or something else?
If their packages are different. How much different is it?
I would not be concerned about WHMCS/any billing software they have. I can integrate it in little to minimum time with my current solutions. My concern is hosting control panel they are using. People are more familiar with cPanel. And I am currently developing my own. I don't know if they are going to love it or not.
Rather if you have your own or not. How easily can you migrate their accounts from cPanel into yours? That would be a big question to ask yourself.
Revenue and growth or shrink rate.
Do hot sisters work for the company? Will they stay on once the business is sold?
That would not be big thing anyways. I can easily migrate the contents. But cPanel have tons of feature that needs to be implemented to match them.
A few things you want to look at.
I think what OP is getting at is how you’d get to your last point, how exactly do you determine what you think is ‘the right fee’
Well I personally think there isn't a one size fits all answer to this to begin with.
There is no right answer. As each of us could take the data above and give it a different valuation. The deal is you make and offer based on the numbers above and how long your willing to recoup that investment.
How much would my brand be worth to you? The answer depends on bunch of stuffs.
If all of those above answers yes, 8-18 month ROI.
If any one of them is no, don't bother, unless you are buying big company. Because you ain't getting much PR attention and most of the clients will leave, resulting in very few "growth" opportunities.
When we were aggressively acquiring small brands, we realized that most of their user base are already our family members and those investments really didn't yield much value.
Will keep in mind. Thank you very much.
So basically acquiring small company doesn't create any value/little to no value at all?
I spoke about 3 points above. Those 3 points in my opinion creates value. A company might be small, but still be tremendously profitable and a quality brand.
You can acquire a small company and continue growing the brand, without the initial effort, that original founder put in to make the brand.
If you acquire such business what'd you do in your case? Will you move customers under your roof or keep them where they are right now and nurture it to grow further?
Makes sense.
Haha true.
If my target is to buy the brand, I am keeping the brand separated and act more of like an consultant and let it continue at its own pace.
If my target is to simply acquire the client base, they are getting merged.