Selling my hosting company?

  • Casey
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  • Loc: Iowa

Post 3+ Months Ago

So, I created my hosting company because I wanted to learn, save my previous web design clients some money, and play with new technology. Now, I've done all that.

But lately, I've been thinking about selling everything. It all works great and requires very little maintenance, but honestly, I don't have a lot of ambition to go out and get new clients. Plus, I'm going to be going to medical school in 2 years, and I'm not going to have a lot of time to manage a side business.

So, here's my question. How much, if anything, do you think I could sell my hosting company for?

Here's some info
Custom designed website (http://www.webtechia.com)
Pentium 4 - 3Ghz HT
1024 mb ram (PC 3200)
2 80GB Hard Disks (RAID)
4 clients
100 mb/sec colocation - 300 GB/month
Lifetime DirectAdmin License
WhoisCart automated billing (already set up and working of course...)

My current clients pay me enough to cover my monthly colocation fee (would remain on server), and my ping times to the server are incredibly fast. In fact, I'm in Iowa, and the server is in Michigan, but the ping times are faster than almost any hosting company I've ever pinged. I've spent a lot of time search and dealing on my equipment and hosting. In fact, I'm certain I can undercut any hosting company in this state and still provide a better service.

Any idea what I might get if I sold everything? Part of me wants to keep it; part of me wants to sell it. I'm just curious if it would or wouldn't be worthwhile.

Any input would be helpful. Thanks all....
  • benoitb
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  • Loc: Washington, DC

Post 3+ Months Ago

Casey, It would all come down to the client valuation. You would have to work out the profitability ratios. In the long run the clients are more important than the hardware. PM me if you have any detailed questions.
  • dtail
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  • Loc: Calgary AB Canada

Post 3+ Months Ago

benoitb wrote:
Casey, It would all come down to the client valuation. You would have to work out the profitability ratios. In the long run the clients are more important than the hardware. PM me if you have any detailed questions.


-----------------------------------

Don't know who to ask.

I've run a hosting company for over 4 years and now want to sell that portion of my business. We have close to 350 clients. +/- 65K / year

If anyone would be interested in this... or if someone could point me in the right direction it would be greatly appreciated.

Thaks
  • kevkap
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  • Loc: Maysville, Oklahoma

Post 3+ Months Ago

The usual purchase price is somewhere close to a years revenue. This is of course not always the case but it seems to be a rule of thumb for starting negotiations.

I may be interested in your clients, I would not need the server as I have my own.
  • dtail
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  • Loc: Calgary AB Canada

Post 3+ Months Ago

hiya.

Sounds good, but I'm quite concerned about who would be taking on my clients. We would maintain a business relationship with them for applicartion development and consulting. I'd be concerned about moving them as well, and I'd like to know what your game plan would be. Just so you understand, our clients considered us as a one stop shop, and some have been with us for many years. We basically managed everything for them. The hosting however has become difficult for us to manage as we take on bigger contracts.

- you can email me here: mr.dave.tail@gmail.com

We can discuss more from there.

- dave
  • mysticalfairy
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  • mysticalfairy
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Post 3+ Months Ago

Who your clients are is key

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