+1000

Sent from my iPhone

> On Jul 16, 2019, at 6:54 AM, Darin Steffl <[email protected]> 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 <[email protected]> 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 <[email protected]> On Behalf Of TJ Trout
>> Sent: Tuesday, July 16, 2019 4:03 AM
>> To: AnimalFarm Microwave Users Group <[email protected]>
>> Subject: Re: [AFMUG] Wisp value
>> 
>>  
>> 
>> Jeez my cell phone keyboard is terrible!
>> 
>>  
>> 
>> On Tue, Jul 16, 2019, 1:59 AM TJ Trout <[email protected]> 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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