I hate to be cold hearted but Ken is right and as far as value for the
debt you mentioned and n0. of subs and value of gear used.
I would say its worth $0 and some change besides the customer base to
acquire is all its worth.
I would just start a new and start going after that Base.
On 7/16/19 7:54 AM, Darin Steffl wrote:
I've been bit in the ass everytime I tried to do something nice for
someone. Start acting more like a businessman and your life will
become easier and you'll feel better being paid for your time and
services.
If I were you, I'd give him a couple days grace period to pay the past
due. If he doesn't, shut him off then start overbuilding his network
and take his customers.
If his network isn't something you're proud of, why buy a subpar
company? Build something new up to your standards.
He'll learn a valuable life lesson after all this. Don't cheat on your
spouse, pay your bills, and don't take help from someone for granted.
On Tue, Jul 16, 2019, 6:08 AM Ken Hohhof <af...@kwisp.com
<mailto:af...@kwisp.com>> wrote:
Are you asking about a price on the assumption you would be the
buyer, or the competitor? Ideally a value would be based on EBIDTA
not revenue. Lacking that information, maybe somewhere between 6
and 12 months revenue. Probably seller financing, something along
the lines of he gets 75% of revenue and you get 25% for the first
year, then you own it. But it sounds like he owes you a bunch of
money. And you really don’t want it. If you don’t want it, it’s
worth zero. Also you want to buy the assets not the company,
structure it so that you don’t get hit with debts and other
liabilities. And remember to factor in prepays, if he is short of
operating capital, he may be getting a lot of customers to pay
yearly, in which case on average you provide service for 6 months
but he already got the revenue.
I think the idea behind paying some multiple of yearly revenue is
that you’re acquiring customers, in which case it has to be
weighed against the cost of acquiring a customer through other
means, like advertising or promos. Which brings up the question,
do your networks overlap? If he fails, do the customers come to
you anyway? Do you and the competitor split them? If you will
get the customers anyway, why pay him for them?
From the information you provided, it seems unlikely you’ll ever
see the money owed you. He probably realizes this. Maybe he
hopes to sell to the competitor to get cash to pay his debt to
you, that’s probably wishful thinking. Or he sells to you and
after accounting for what he owes you he gets very little.
There is a saying don’t throw good money after bad. Ask yourself
what is the probability you will ever see any of the money he owes
you. If the chances are slim to none, you need to move forward on
that basis. Maybe that means cut the cord and let him fail. If
you realistically think he can repay you, which scenario makes
that more likely, you buying or the competitor buying? It would
really suck if he sold to the competitor and still didn’t pay you
what he owes. But if you buy him out, that probably means you’re
taking what he owes out of the sales price, and he may not get
much cash out of the deal.
*From:* AF <af-boun...@af.afmug.com
<mailto:af-boun...@af.afmug.com>> *On Behalf Of *TJ Trout
*Sent:* Tuesday, July 16, 2019 4:03 AM
*To:* AnimalFarm Microwave Users Group <af@af.afmug.com
<mailto:af@af.afmug.com>>
*Subject:* Re: [AFMUG] Wisp value
Jeez my cell phone keyboard is terrible!
On Tue, Jul 16, 2019, 1:59 AM TJ Trout <t...@voltbb.com
<mailto:t...@voltbb.com>> wrote:
I've been mentoring a friend of mine, he's young and rather
ambitious. He started out his 'wisp' using a residential cable
connection, I've helped him for basically free for the last
three years grow his base to 250 customers, he just last week
acquired a failing wisp with 65 subs on a no money down, pay
us a commission basis. I've been managing most of his core
network and providing him IPv4 and transit for a steal of a
price, I even loaned him a substantial amount of cash recently
to buy a bunch of surplus equipment. Well anyway I guess he
got caught with another women and his wife is demanding he
shut down or sell the wisp for whatever reason, he called and
put this all on my plate today.
Instead of offering to sell me the company (I don't really
want it) he tellse that he's going to try selling to a local
competitor whom I consider slightly a better personal than a
child molester.
So anyway I'll try to stop rambling, what's a wisp Worth these
days? Gross revenue for a year is what I figure (max) with his
all used ubnt equipment?
The other dilemma is that he's about 3 months behind on his
transit and his note is due for repayment Monday ~$15k total.
I need a way to ensure I get paid current and I don't let him
get behind during the 'sale'. I was thinking to quit being the
nice guy and demand the past due balance + the note in full +
3 months transit in advance so I don't get screwed during the
sale process if he gets behind again. I don't know if he can
even come up with the money and my only leverage is to turn
his port down... I have a strange feeling he may try to stall
me as long as possible until the competition can thing in
transit and run off without paying the bill....
Sorry for he rant, just sick of helping people because every
time I do I end up regretting it.
TJ
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