Multiple of RPU is still how Ive seen deals evaluated, past and present. The thinking on the part of the buyer is "I can buy you for X multiple of sales today. Yes- I can achieve economies of scale, yes I might be able to sell more services and crank up the revenue. But- those future activities occur on my dime, not yours Mr. Seller, so all that value should go to me. Ill take the future risk and Ill get the rewards. You get rewarded for your past performance to date". You always need to protect yourself and be ready to leave the dance when the right date comes along. In the late 90's there were a lot of deals happening for dial-up shops, some good, some bad. The ones I saw were solid cash out deals. The squirrelly ones I saw were generally the deals that involved some future potential.
Chris Wrong. Thats old school. Evaluation is a direct multiple of the ARPU that the buyer can acheive because they bought your netowrk. Consider their new ability to gain revenue at a quicker rate, based on the unique benefit of combining the buyers and sellers assets. The way of increasing revenue is irrelevent. Consildation... Time to Market... illiminating a competitor allowing for higher prices, Throwing money and a marketing engine onto a network built out to serve that previously had little money to market its growth. -- WISPA Wireless List: email@example.com Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/