Hi Mark,
I don't have time to get into the deep details right now. I can probably
help with this if you'd like. I've done some valuations based on income,
customer base etc.
Standard business stuff would put your company value at 1.2 to 2x annual
earnings. OR 3 to 5 x annual profit (probably not much of that if you're
growing well).
With a wisp, it gets more complicated because most wisps are growing fast
and are just starting to get into the profit mode. So the value of the
company won't even hit most guys for a couple more years. shrug
I've also seen WISPs get paid for the number of homes passed in addition to
the above.
The last valuation I did I took the number of customers possible on the
hardware installed, cut that down to more reasonable numbers (100 users per
ap), figured a moderate growth rate (max of 4 per day after 3 years) and
came up with an expected customer base in 36 months. That's the point that
I put a value on the company. I used 1.5x annual earnings. At this point
the company would have been HUGELY profitable though. (started out with 1
install per day, ramped that up by 1 every 6 months or so) *I* think I had
a reasonable growth rate (market size was nearly 1,000,000 people much of
which had NO broadband) and left room for several competitors to gain market
share.
On a partnership breakup it gets more difficult. No one probably has any
money (or they'd not be fighting so much in the first place). One guy
usually put up all the funding and the other one did all of the work. There
are hard feelings and often friendships on the line. In those cases about
all you can do is to take the income today and use that for the value. Or
one partner can agree to go silent and let the other one carry on with
business. Tough stuff either way.
Hope that helps. Feel free to call if you'd like to talk it over some more.
Marlon
(509) 982-2181 Equipment sales
(408) 907-6910 (Vonage) Consulting services
42846865 (icq) And I run my own wisp!
64.146.146.12 (net meeting)
www.odessaoffice.com/wireless
www.odessaoffice.com/marlon/cam
----- Original Message -----
From: "Mark Nash" <[EMAIL PROTECTED]>
To: "WISPA General List" <wireless@wispa.org>
Sent: Thursday, April 27, 2006 7:31 AM
Subject: [WISPA] Business Value
I may be splitting with my partner in the coming months. We'll have to
come
up with a buy-out agreement. Has anyone got experience with valuating
WISP
businesses?
Mark Nash
Network Engineer
UnwiredOnline.Net
350 Holly Street
Junction City, OR 97448
http://www.uwol.net
541-998-5555
541-998-5599 fax
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