I hear this argument often but don't agree with it. I guess it depends on if they are "on top" of you or not - we used to be the only game in this part of Alabama but over the years a few other guys have come to bat. Some we've helped get started. Some we've worked with or they used to work for us. Recently we came across a company we weren't even aware of when we had two towers that could see each other.
We have acquired two companies and are in the process of acquiring a third. We are not in the area they operate in and we don't know the local people there like they do. They have networked for years and seem to know all the right strings to pull. They've already created a network and installed the first x number of customers. If they're burnt out and ready to quit or have run out of money that is even better - we can pick it up for pennies on the dollar. We have proposed to pay less than half for this company than we did the last one - and by all comparisons they're roughly the same size as the last one. They just got behind on their bills and will "turn to dust" within 30 days if we don't build a bandwidth connection over to them. Because of that we did not offer 0, but we didn't offer what we offered the last company either because they were still in good enough shape to continue operations.... ----- Original Message ----- From: Travis Johnson To: [email protected] Sent: Wednesday, January 11, 2017 5:40 PM Subject: Re: [AFMUG] Price per sub? I always looked at these type of things as "How much could I spend in advertising and giving away free months of service in that area to pick up a majority of the customers anyway?" :) If they are at $20/month, you could give customers 6 months free to switch to you, and you gain a customer for $120. People love to switch when they can get service for free. Travis On 1/11/2017 2:39 PM, Brett A Mansfield wrote: There are only 190 subs. I'll have to get their financials to determine ebitda since they don't even know. But if it's what I think it is then they won't sell for what I'll offer. 4x ebitda isn't much for only 190 subs. Thank you, Brett A Mansfield On Jan 11, 2017, at 2:14 PM, Josh Reynolds <[email protected]> wrote: How many subs? On Jan 11, 2017 3:13 PM, "Brett A Mansfield" <[email protected]> wrote: When looking at buying a competitor, I'm wondering what everyone's thought is on a price per sub? They don't do contracts and they use the litebeam hardware. I'm not looking for legal advice, just wondering what all of you think is fair. This company has about a 90% take rate in the area they're in. Their plans are $20, $40, and $50/mo. Thank you, Brett A Mansfield
