In addition, tower rights (or lack thereof) is a big consideration.
-RickG

On Fri, Jul 17, 2009 at 5:15 PM, Tom DeReggi<wirelessn...@rapiddsl.net> wrote:
> I disagree with comments relating to X times annual revenue.
> I think the issue is more that buyers are realizing that in this market and
> economy X times revenue doesn't adequately valuate a company.
> A 3-4X times annual could still be achieved if the most of the gross revenue
> was actually monthly profit. Some businesses are in that situation.
> They have their gear paid for, most of their reoccuring costs are in-kind
> trade, etc.
> The problem is that isn't usually the case, which is why they get 1X
> valuations, if even that.. Usually what occurs is, a business has next to no
> profit, poor cashflow, and leased out the kazu for 3-5 years, and thus is
> tired out of working long hours for free.  Further the buyer has to consider
> risk, and in this economy its uncertain whether business models will mature
> to success.
>
> I think you need to really look at your business to determine its profile,
> before you can begin to establish a worth or a method of valuating it.
>
> For example, Surely a company that owns a million dollars of gear outright
> is not going to be valued the sam as a company that has 3 years of leases
> remaining on their books for the same amount.
>
> You could also look at how to get rid of your primary costs. For example,
> maybe backhaul is one of the large expenses? If so would a WISP that got a
> middle mile infrastructure grant, benefit by your network?
>
> The biggest problem I see with getting a high valuation on a 500 sub network
> is that there might not be enough subs to really cover the payroll of techs
> on the street that buyer would have to obtain to manage it.
>
> Tom DeReggi
> RapidDSL & Wireless, Inc
> IntAirNet- Fixed Wireless Broadband
>
>
> ----- Original Message -----
> From: "3-dB Networks" <wi...@3-db.net>
> To: "'WISPA General List'" <wireless@wispa.org>
> Sent: Friday, July 17, 2009 4:36 PM
> Subject: Re: [WISPA] Question re: WISP for sale
>
>
>> Yeah don't expect over 2x annual revenue right now. 1x might be more
>> realistic. depending on the network and what a new operator would have to
>> do
>> to bring it into theirs, etc.
>>
>>
>>
>> Daniel White
>>
>> 3-dB Networks
>>
>> http://www.3dbnetworks.com
>>
>>
>>
>> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
>> Behalf Of Brian Rohrbacher
>> Sent: Friday, July 17, 2009 1:30 PM
>> To: WISPA General List
>> Subject: Re: [WISPA] Question re: WISP for sale
>>
>>
>>
>> I have heard .5-2 times annual many times on this list........
>>
>> Josh Luthman wrote:
>>
>> One way I have heard it done:
>>
>> Take the annual gross revenue, times it by 3 (three years gross revenue)
>> and
>> that's the buy out cost starting point.  Seen this more so with telecom
>> (voice) then data services, but it's a place to start.
>>
>> Josh Luthman
>> Office: 937-552-2340
>> Direct: 937-552-2343
>> 1100 Wayne St
>> Suite 1337
>> Troy, OH 45373
>>
>> "When you have eliminated the impossible, that which remains, however
>> improbable, must be the truth."
>> --- Sir Arthur Conan Doyle
>>
>>
>> On Fri, Jul 17, 2009 at 3:21 PM, Patrick D. Nix, Jr <
>> pni...@cnetworksolutions.com> wrote:
>>
>>
>>
>> I apologize as I know this has been discussed on the list before.  We
>> are entertaining the idea of selling out of our respectable size
>> wireless ISP business in eastern Oklahoma.  We have about 500 (growing
>> daily) subscribers.  Anyway, we are working on determining the net worth
>> of the business.  Any thoughts or formulas for determining this?
>>
>>
>>
>> Patrick Nix, Jr.,
>> Computer Network Solutions
>> CSWEB.NET Internet Services
>> IT Manager
>>
>> http://www.cnetworksolutions.com
>> http://www.csweb.net
>>
>> (918) 235-0414
>>
>>
>>
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