Quote:
Originally Posted by Brad Mitchell
I have to agree with Shap on this point. I think there's some serious underestimation of the work involved in generating that type of enterprise value. Outside of that, those suggesting 10mil+-? is low I doubt have ever seen even a fraction of that type of money in their own bank account. Congrats to Ray!
Brad
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I am not saying the $$ is low. I am saying that it seems that jupiter wasn't making as much money as on a yearly basis as everyone thought. Typically hosting company buyouts are based on a multiple of gross revenue or in this case a multiple of EBITDA. The total number of 15mil sheds light on the fact that one of these company Jupiter or Alabanza wasn't making nearly as much as anyone thought. And I honestly doubt Navisite will waste time and money doing a 2 to 3mil transaction so I would lean more towards an almost even split of 7.5 and 7.5mil each which sounds more realistic. But then again this is all speculation.