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Buying hosting companies(EU)
Hi guys,
The company I work for is buying other hosting businesses. We are currently interested in shared hosting and VPS providers, located in EU. Budget is max $5k per company, only EU based servers, migration to our infrastructure is required. We prefer buying only clients / part of clients, but we may be interested in the whole company / brand. LEB pricing is okay as long as it's a fair price vs specs(read, not interested in 2GB RAM for a few $ per month). Clients must be clear, no spam, ddos, malware or anything alone those lines.
Inbox me if your interested!
Thanks
Comments
So, with it being companies in the EU, why are you specifying USD instead of GBP, EUR?
$5K isn't going to get you much.
Because we take payments in USD, while having our infrastructure in the EU / Netherlands. We can convert if your looking for EUR or GBP though.
Yeah, I'm aware of that, but thats the budget at this time for LEB companies(where profit margins are quite small). Ready to discuss if you have something of higher value though.
At that price only someone with a couple of servers will sell. Or more but not owned hw, just leased.
I am curious if you manage that tho, from my PoV, I would not renew if I am "sold" as a customer, ESPECIALLY if I will be migrated to another location/hw.
I'd sell for $5k. Our WHMCS integration theme I mean.
hahaha!
I am curious if you manage that tho, from my PoV, I would not renew if I am "sold" as a customer, ESPECIALLY if I will be migrated to another location/hw.
Well, we aren't looking to buy hardware at this price, I mentioned clients would be migrated to our infrastructure within NL if agreed. Ideally, I would agree to 6-8x monthly profit price. This is mainly for people who want a quick way out, aren't making enough profit off their current setup etc.
This is $5k, not $5.
For 5k based on purely a 1 year cycle the host has to make less than $416/month after costs to want to even consider your offer. I'm guessing that's about 2-3 nodes of profit based on LET's pricing, probably just 1 if non-LET.
I'm sure there will be people with 2-3 nodes who want to cash out since $416/month isn't exactly livable monthly salary in market conditions today, but you'll likely be buying hosts that never grew, and usually there's a reason behind it. I haven't heard of a deadpool in a while, I believe everyone who's active in LET is doing pretty well, or at least sustainable.
TL;DR; Low offer but not impossible. No deadpool-to-be in the market I believe.
If you have 5K, why not just make your own? Then goto WHT, buy clients off of people.
He already run his own hosting company, read the part about his own infrastructure. Acquiring is a norm in the hosting industry, it's faster to grow when you acquire customers in bulk, and growing means you bring your costs per customer down as well.
Mainly interested in clients, not brands, so it doesn't really matter if they couldn't grow under their brand.
Yes, that is correct.
@apollo15 I don't get why you just don't ask webhostingtalk.com, or even @Jeffrey as he is selling his company and last time I checked the BIN on WHT was $195
I will, I just figured out I would ask here first. No worries.
Are you being for real?
Yes. What is weird there?
The apollo15 story:
Comes to LET wanting to buy companies that don't sell LEBs
I do want LEBs, but fair price vs specs. 2GB RAM for a few $/month isn't going to work.
If you add a few more zeros, we could come to an agreement.
If your in the EU and your monthly profit(not turnover) is a few more zeros to $500, which I highly doubt, then we may discuss further.
For a really established web hosting company $5000 is nothing.
Like @Ishaq said, @apollo15 if you want to really get hosts interested, take $5000 and add 2 more 0's to make it $500,000
Not so sure, many hosts talk a good game about all their customers, but in reality I doubt their profits look quite as attractive as you may think.
Not really the point. The point being $5000 is way too little
Maybe 500000? 5000 is a but low as I think too.
lowendtalk complaining the price is too low? This is new
Oh how about $5000000? If I had $500000 you can be sure I wouldn't be here, and I'm sure 99% people would do the same.
I set the price mark to $5k because I'm sure majority of hosts over there don't have $5k pure profit / 6-8 months, besides a few biggest hosts who own loads of hardware and IPs around here which l couldn't afford anyway. This is offer towards small players with rented hardware who dont make their time worth it and want a quick way out, to be perfectly honest.
@Ishaq
Even if I add one zero to $5000 it would make $50000. Are you sure you make $5k pure profit every month? If I was overpaying things 10x I would be gone long time ago.
No hard feeling
Lol
I really laughed, as if in LEB we asked him for 500,000's, then what he will expect to get if he started a thread in WHT? lol, probably $billion requirement :P He must be scared by now.
I personally (doesn't run a company) think with many hosts entering deadpool, there could be some good/serious sellers for ~5k, but I'm not sure.
But I loved the expression "add some zeros" :P As a zero can make a huge difference! If you removed one from US dept probably apollo15 himself could afford it. Um oh wait, not that much either
@Intcs makes sense
If your business can't make $5k profit in 8 months then it's maybe worth walking away from the business. The only situation where I can see a lot of hosts here not making that profit is when they pay themselves generous salaries.