Buying any new business is complicated to say the least and buying a hosting business or customer base is no different and possibly even more complex. Becoming educated on the process and potential pitfalls would behoove you. When looking to purchase a hosting company there are many aspects that a buyer needs to be aware of not the least of which is what can go wrong. The purchasing process is time consuming and costly, so you want to make sure you have evaluated and reviewed all provided information and asked the critical questions before proceeding. Below are some elements to […]
When considering purchasing a business, most would immediately think of what can wrong for a buyer, but the reality is that there is just as much risk involved for a seller. Sales Challenges for You – The Seller. No Financing Secured One major issue that can cause a lot of stress for a seller is finding out that your buyer isn’t financed. Unfortunately, this is something that may not become evident until post signing of an LOI (Letter of Intent). At this point, for the seller in particular, there has been a lot of time and resources used to move […]
When brokering the purchase of a hosting business, we are often asked why the host is selling in the first place – especially if the business is particularly profitable. There are a variety of reasons that sellers sell. In this post we will cover some common scenarios and what you need to know as a buyer. Hosting Insights: What the Seller Is Thinking and What You Need to Know 1. The seller is retiring In some cases, it is simply a matter of the company owner reaching the end of their working career. They are ready to move on from […]
There are many reasons you might be interested in selling some or all of your hosting business. Some of the typical ones include general fatigue, alternative opportunities, a strategic shift in business concentration resulting in a change in services offered (for example no longer offering shared hosting), a partnership that has gone sideways and many more. Once you’ve made the decision to part with what might be your baby, this may be more than just a rational choice and may also involve some emotional aspects. If you are going to sell your hosting business, you should immediately start to think […]