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Website Hosting Company for Sale
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Many business people have considered getting into the website hosting business. The margins are good - plus it generates recurring revenues. If you do it right, it's also quite a fun business to be in. The first idea that pops into some people's heads is to go the route of becoming a hosting reseller. The startup costs are very low, and the backend issues with servers and email are the responsibility of the web host - not the reseller. That's fine to get started, but what if you are just a bit further along and want to actually buy a website hosting company? Where can you even find web hosting companies that are for sale? I checked with my friends at website hosting company 34SP.com and they suggested these two resources that show actual offers with prices to get you pointed in the right direction.
Cheval Capital
As described on their website, Cheval Capital is: ''A boutique investment bank that specializes in mergers, acquisitions and corporate finance.'' The company is run by Frank and Hillary Stiff. Together the team has vast amounts of experience and have handled many hosting-related transactions over the past few years. What I have found to be supremely helpful over the years has been a list of web hosting companies for sale that the company distributes via email. Dubbed the ''Cheval Opportunities List'' it is comprised of assets currently for sale. The companies for sale are usually in the range between $50,000 US and $5 million US. The list is emailed out about every 2 weeks.
Cheval acts as an advisor in the transactions and is paid a modest fee by the buyer. The fee is paid as the buyer pays the purchase price - so if the seller is paid over time, Cheval Capital is paid over time as well.
Here is an example of what one listing looks like from a recent mailing.
''A full service hosting company in the Southeastern US with approximately $1.25 million of annual revenue from business customers. Unlike most companies in this size range, this company is unique in that it has the systems and people to be a platform for a buyer to build upon. Revenue & customers breaks down approximately as follows; $650k is from 2,450 shared hosting customers, $511k from 115 dedicated/colo hosting customers, $90k from 20 web design customers and the remainder $22k from 2,400 domains. 8 FT & 1 PT employees. Equipment is at a first class data center with room to expand. Owner is willing to stay on and work with the buyer on a transition to the new ownership.''
To get added to the mailing list for the Cheval Opportunities List, contact Frank Stiff at: fstiff[at]chevalcap.com, or phone directly at 703-549-7390.
Webhostingtalk Sites for Sale
Webhostingtalk.com is the largest online community serving the hosted services industry. It is a huge forum with literally thousands of posts related to web hosting. Mixed into those discussions are many opportunities to discuss purchasing a hosting company. There is a specific forum labeled as ''Other Hosting Related Offers'' that often contains messages from website hosting company owners who are interested in selling their companies.
Here is an example of what one post looks like from a recent thread.
''Selling Hosting Company / Clients :
» USD Currency
Monthly: $227.69 USD (18)
Quarterly: $0.00 USD (0)
Semi-Annually: $821.53 USD (21)
Annually: $1011.71 USD (23)
Biennially: $1064.20 USD (10)
Est. Annual: $5919.15 USD
Server cost $140.00 a month which you will take over. I will include a cPanel license, WHMCS license, and Shoutcast admin pro license for 1 year if you keep the server. If you do not plan on keeping the server the licenses will not be included for a year.
If you have any questions please PM me. If you would like to make an offer you can also PM me.
I can also offer in the package a domain reseller account with resellerclub.com (.com/.net/.org at $7.79 + Slab 3 on the rest of the TDLs) We have special pricing terms with Resellerclub.''
So there are two specific resources to help you research web hosting companies for sale. If you follow these two sources consistently and study the offers, you will get a great sense of what the climate is for buyers and sellers of web hosting companies. Often, just being aware that a hosting asset is for sale is the first step in getting a fantastic deal as well. Good luck if you are looking for a website hosting company to buy.
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Author
Derek Vaughan is a web hosting industry veteran, marketing consultant and writer. Mr. Vaughan has architected the marketing growth of several prominent web hosting success stories leading to acquisition including Affinity Internet, Inc., Aplus.Net and HostMySite.com . Prior to his entry into the web hosting industry, Mr. Vaughan was responsible for online marketing at The Walt Disney Company where he marketed ecommerce for the ESPN.com and NASCAR.com brands. Mr. Vaughan received his M.B.A. from Vanderbilt University and currently serves on the HostingCon Advisory Board. View Derek Vaughan`s profile for more
Comments:Hanzen - December 28th, 2009
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