I seem to remember this thread started with a post about buying, but there 
seems to be a lot of interest in selling.  I wonder why.

 

Is it because customers are getting on our nerves?  I know they’re getting on 
mine.  Everyone is stuck in their house doing everything on the Internet and 
whining about it and waiting until the last minute and then needing stuff right 
now this minute because we’re streaming/gaming/Zooming/eLearning/teleworking 
here.  Plus doing construction on our house and the contractors are here right 
now taking your dish off the roof or putting siding nails through your cable.  
Or they’re buying/selling houses because interest rates are like zero or to 
move away from the virus or to a different school district.

 

 

From: AF <[email protected]> On Behalf Of Mike Hammett
Sent: Sunday, August 23, 2020 10:05 AM
To: AnimalFarm Microwave Users Group <[email protected]>
Subject: Re: [AFMUG] Buying and selling ISP’s

 

I know it *CAN* be anything.

 

I'm asking what it is for successful, arms-length, nothing special 
transactions. I do expect there to be a range.

 



-----
Mike Hammett
 <http://www.ics-il.com/> Intelligent Computing Solutions
 <https://www.facebook.com/ICSIL>  
<https://plus.google.com/+IntelligentComputingSolutionsDeKalb>  
<https://www.linkedin.com/company/intelligent-computing-solutions>  
<https://twitter.com/ICSIL> 
 <http://www.midwest-ix.com/> Midwest Internet Exchange
 <https://www.facebook.com/mdwestix>  
<https://www.linkedin.com/company/midwest-internet-exchange>  
<https://twitter.com/mdwestix> 
 <http://www.thebrotherswisp.com/> The Brothers WISP
 <https://www.facebook.com/thebrotherswisp>  
<https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> 




  _____  

From: "Chuck McCown" <[email protected] <mailto:[email protected]> >
To: "AnimalFarm Microwave Users Group" <[email protected] 
<mailto:[email protected]> >
Sent: Saturday, August 22, 2020 10:28:58 PM
Subject: Re: [AFMUG] Buying and selling ISP’s

That can be anything.  There is no connection between revenue and earnings.  
You can have $2M in revenue  but -$5M in income if you burned cash to generate 
sales.

Sent from my iPhone

 

On Aug 22, 2020, at 7:35 PM, Mike Hammett <[email protected] 
<mailto:[email protected]> > wrote:



Right, but what I'm asking is that if 5x EDIBTA = Y, then what was Y / annual 
revenue?



-----
Mike Hammett
 <http://www.ics-il.com/> Intelligent Computing Solutions
 <https://www.facebook.com/ICSIL>  
<https://plus.google.com/+IntelligentComputingSolutionsDeKalb>  
<https://www.linkedin.com/company/intelligent-computing-solutions>  
<https://twitter.com/ICSIL> 
 <http://www.midwest-ix.com/> Midwest Internet Exchange
 <https://www.facebook.com/mdwestix>  
<https://www.linkedin.com/company/midwest-internet-exchange>  
<https://twitter.com/mdwestix> 
 <http://www.thebrotherswisp.com/> The Brothers WISP
 <https://www.facebook.com/thebrotherswisp>  
<https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> 





  _____  


From: "Chuck McCown" <[email protected] <mailto:[email protected]> >
To: "AnimalFarm Microwave Users Group" <[email protected] 
<mailto:[email protected]> >
Sent: Saturday, August 22, 2020 10:01:44 AM
Subject: Re: [AFMUG] Buying and selling ISP’s

Whatever 5x your earnings are.  Not sales or revenue or gross profit but bottom 
line earnings on your income statement/ pl. Your taxable income.

Sent from my iPhone

 

On Aug 22, 2020, at 8:16 AM, Mike Hammett <[email protected] 
<mailto:[email protected]> > wrote:



What does the revenue multiplier end up being, though?

5x EBIDTA / revenue gets you what, in purchases that have been made?



-----
Mike Hammett
 <http://www.ics-il.com/> Intelligent Computing Solutions
 <https://www.facebook.com/ICSIL>  
<https://plus.google.com/+IntelligentComputingSolutionsDeKalb>  
<https://www.linkedin.com/company/intelligent-computing-solutions>  
<https://twitter.com/ICSIL> 
 <http://www.midwest-ix.com/> Midwest Internet Exchange
 <https://www.facebook.com/mdwestix>  
<https://www.linkedin.com/company/midwest-internet-exchange>  
<https://twitter.com/mdwestix> 
 <http://www.thebrotherswisp.com/> The Brothers WISP
 <https://www.facebook.com/thebrotherswisp>  
<https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> 





  _____  


From: "Chuck McCown" <[email protected] <mailto:[email protected]> >
To: "AnimalFarm Microwave Users Group" <[email protected] 
<mailto:[email protected]> >
Sent: Friday, August 21, 2020 8:20:47 PM
Subject: Re: [AFMUG] Buying and selling ISP’s

5 x ebidta

Revenue multiples are of no value.

Sent from my iPhone

 

On Aug 21, 2020, at 5:30 PM, cjwstudios <[email protected] 
<mailto:[email protected]> > wrote:



1x annual revenue and hope the customers stay on

 

On Fri, Aug 21, 2020 at 5:43 PM Matt Hoppes <[email protected] 
<mailto:[email protected]> > wrote:

This is the issue I’ve always had when I’ve looked at buying an ISP. It always 
seems like a lot more money I would have to put out to buy then I could just 
build and take the customers if something is wrong with the current network.



> On Aug 21, 2020, at 12:43 PM, Seth Mattinen <[email protected] 
> <mailto:[email protected]> > wrote:

> 

> On 8/20/20 8:13 PM, Steve Jones wrote:

>> I think you either buy or sell, isp isnt really a flip thing

> 

> 

> There is/was someone in my part of the country buying up ISPs and trying to 
> package them all together as a flip. My ISP customers tell me it's far easier 
> to get the flipper's customers to cancel and switch than buy their company.

> 

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> AF mailing list

> [email protected] <mailto:[email protected]> 

> http://af.afmug.com/mailman/listinfo/af_af.afmug.com



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