This varies wildly. I have seen everything from deals where the new WISP
just takes over the debt and I have heard of 4 times yearly gross
revenues. The bigger the WISP the more they are worth as a multiple of
earnings in most cases. I would say that 1X yearly revenues, as you
describe, would be par for a WISP with less than 250 customers or so. If
they have more than that and up to 2000 customers then I would guess 2X
yearly revenues would be a fair estimate. For systems over that size
there are many other factors. You need to look at things like year to
year growth, churn, cash on hand, depreciated assets, asset as opposed
to stock purchase, EBIDTA, etc. If the WISP has done a good job of
building customer loyalty and limiting churn then it is worth more than
a WISP who is losing customers, has a bad reputation, etc. I once
acquired a dialup ISP for $2000. That was about 1 months revenues. We
got the domain name, customer lists and a letter of recommendation from
the previous owner telling the customers about us and that he knew we
would take care of them. In the end the WISP is worth what you and the
seller can agree to. I guess what I am saying is that there is no magic
formula for appraising a WISP at this time.
Scriv
Travis Johnson wrote:
Hey,
Anyone seen current pricing for purchase of a WISP? The last I saw it
was around 12x the monthly... has that changed at all lately? I have
the opportunity to purchase a neighboring WISP.
Travis
Microserv
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