Please, please, please be realistic about your asking price. We have been involved in 10s of acquisitions over the past years, and I can not begin to tell you how many people are unrealistic and don?t do any research prior to listing there business.
Example:
MRC (monthly recurring charges) = $50,000 (or early income of $600K) and this company was asking for $12 Million. This is a real example that we were faced with 3 weeks ago. Basically this person was asking for 20 years worth of revenues.
You (the sellers) have to know that there is a certain metrix to selling a host, and that?s now (not 1998-2001 during the host hot times)
For the most part it is realistic but then again sometimes these numbers can differ.
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1 Multiple = MRC X 12 months
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MRC $1,000 - $10,000 Multiple Average .35 - .65 Possibly higher depending on clients, hardware and terms
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MRC $10,000 ? $99,000 Multiple Average .5 - .85 Possibly higher depending on clients, hardware and terms
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MRC $99,000 - $250,000 Multiple Average .6 - .99 Possibly over 1 depending on clients
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MRC $250,000 - $1 Million Multiple Average .85 and up
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