Please see within your mail: On Tue, Sep 15, 2009 at 2:01 PM, Tom DeReggi <wirelessn...@rapiddsl.net> wrote: > I'm also not in favor of any deal, that forces a participant into a destiny > they don't untimately ahve control of, or where they lose control of how > they evaluate their local value when they reach the exit stage. For example, > one subsidiary may easilly justify a return with a 1x sale, but another may > easilly be able to justify a 3x sale. When all areas are lunped in as one, > the sale price of teh one has to get averaged out, and those that have more > value will get underpaid for their value. And when that doesn;t occur, there > is always in-fighting because everyone thinks there own network is more > value than the next guy's.
The way each ISP is being evaluated is based on a formula that take subscriber numbers, income, and gross costs into account. This flattens out the playing field between all players whether they bring in 500 customers or 10K. No control is lost other than agreeing to be in the group and agreeing that if the agreed to price is met they are willing to transition to the next organization structure. Each ISP retains a portion of the new greater organization based loosely on the formula above divided by the overall number of subs the new entity has at critical mass. This makes for a proportionate ownership of the public company if that is the route taken. Note to mention some real money. As we know, in whatever final structure the company takes form as, each area will require basically the same individuals to manage, grow, and support that area. So continued employment should be a non-issue. If you still want to work... That's another question. I would. > > As well, I'm never in favor of a plan that is not very clear on what the > poteital subsidiary gains for joining. Volume discounts rarely translates to > value anywhere near the value of lossing independant control of one's > company. And we all know, a subsidiary is controlless, unless the deal > allows the subsidiary majority control of its portion, and able to opt out > at anytime proportional to a pre-defined arangement. Volume discounts are just a free benefit. In tier 3 areas, we pay between $50 to $12 / meg for bandwidth, 6-8 for Tier 1, depending on the amount purchased. We also have been successful at getting $0 fiber build outs to our nocs. > . > For a deal to be worthy, they master Company/Buyer must commit what they are > going to give. For example, most historical deals that ahve failed are made > simlar to... > "If you make these revenue goals or subscriber counts in X time, we'll > invest this amoutn of money or pay you this amount". This still firces the > aquired entity to assume all teh risk. As I've stated. Each subsidiary remains substantially independent. What we are providing is a path to real financial reward for your efforts. > > For the deal to be good it should be.... " We commit to investing this > amount of cash, and that dollar amount is given in trade for X number of > shares, and that dollar amount is equivellent to the amount of cash small > WISP already invested or greater, and then we all split the upside at X > rate, and small WISP maintains all control until such time that the master > corp makes a contribution greater than the small WISP, and WISP may opt to > accept or deny further investment from Master Corp." > > I can do volume buying in coops without compromising my company ownership. > I can opt into a group aquisition anytime I an ready to sell my company. > > But I just hate the deals that are based on.... Give me your compnay, and Do > this for me, and in return we'll give this back. It makes no sense. It need > to be... Give me what I need that I dont have, and risk it, and in return > I'll give you this back. We don't want your company.... It's yours and what you built up. We want to build a common path the more wealth for our efforts. > > >From what I've found Investors always expect to get back much more than can > reasonably be acheived. So the small WISP never meets the goals. And > thesmall WISP never gets their return. > This works to everybody's benefit. > When both parties the buyer and seller, both assume adequate risk and > adeqaute contribution, and adequate percent of upside, there becomes a very > good basis for a deal. > But 90% of all deals fail that basic criteria, and usually end up being the > reason the effort fails. > > I usually find the buyer's goals are so much grander than the return the > small WISP was willing to operate his business for. > > Deals also tend to work when it merges companies of equivellent size and > value, but its near impossible to protect a joining entity, if they are not > of equal scale. Their rights just get lost in the wash. That's what contracts are for. If you don't agree with the plan and the terms, no harm no foul. > > The biggest flaw in deals is there is not a compelling enough reason to make > one large company, other than to plan for an exit strategy sale. And most > WISPs benefit more by staying in the business and living off it for a long > number of years. The money is easy money once the company has reached the > size of profitabilty, why does someone want to sell cheap and start over? > What agregator would pay top dollar, when their goal is to resale and mark > it up? > > The bottom line is, until finance companies leigimately are willing to take > risk and invest in the companies themselves, at the stage before the company > has reached scale and needs the cash, they really offer no value. > > > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > > > ----- Original Message ----- > From: "Mike Hammett" <wispawirel...@ics-il.net> > To: "WISPA General List" <wireless@wispa.org> > Sent: Tuesday, September 15, 2009 2:27 PM > Subject: Re: [WISPA] Aggregate Growth strategy for a public offering > > > I've never been a fan of selling out, no matter the terms.... ever for any > amount of money. That's probably because I'm young and hope to own an > evolution of my company 50 years from now. > > > ----- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > > -------------------------------------------------- > From: "Marco Coelho" <coelh...@gmail.com> > Sent: Tuesday, September 15, 2009 10:34 AM > To: "WISPA General List" <wireless@wispa.org>; > <isp-wirel...@isp-wireless.com>; <isp-inves...@isp-investor.com>; > <wisp-busin...@yahoogroups.com> > Subject: [WISPA] Aggregate Growth strategy for a public offering > >> Aggregate Growth strategy for a public offering >> >> What many think is the holy grail of the Broadband Wireless Internet >> Business is reaching the 100,000 subscriber point then selling out. >> There are a few companies taking the buy-out approach to reaching this >> goal. They are offering between $100 to $1200 per subscriber to the >> owners that have built these businesses up through their hard work. >> They seem to be concentrating on the companies with between 500 and >> 2000 subscribers. >> >> Most of the time, the management of the purchased companies is not >> held on for long after the acquisition, and the quality of the service >> and support for the end user is greatly degraded (a great opportunity >> for us). >> >> We are offering a different path: >> >> What we propose is to band a large group of companies under our >> corporate umbrella. This will be done with very specific limitations >> (for both sides) to ensure all parties are treated equitably. This is >> a no-risk, all-gain proposition! >> >> 1. The companies being added will be subsidiaries of Argon >> Technologies Inc. They will operate substantially autonomously still >> under their respective company structures and management. >> 2. Subsidiaries will be financially autonomous from the corporate >> company. All profits or losses will remain the responsibility of that >> owner-operator. >> 3. Subsidiaries will benefit from the substantial buying power our >> larger entity can offer. We will offer significant discounts for CPE, >> Bandwidth (various providers), VOIP services, PBX services, 24x7 >> Support, Towers, and Tower Access. >> 4. Subsidiaries will be guaranteed a minimum premium for the customers >> they bring to the Corporation. Should we not be able to reach this >> minimum for any reason within the contractual time period, they may >> opt out of the organization at that time. >> 5. Subsidiaries will be encouraged to sell services on each others >> networks. This will greatly increase the efficiency of our marketing >> dollars. If you cannot reach a potential customer with your network, >> and you can on your neighbors, you both profit! How many times have >> your crews been on a new customers roof and only seen the competitors >> access points? Problem solved! >> >> Once our we reach our target subscriber base we will have to decide >> between two different options: >> >> 1. Sell out to a larger corporation. >> 2. Initial Public Offering in the Stock Market. >> >> In either of these two situations, your return on your hard work will >> be multiplied greatly verses a simple sell out to a larger ISP. >> >> Sound intriguing? Let’s talk. >> >> >> -- >> Marco C. Coelho >> Argon Technologies Inc. >> POB 875 >> Greenville, TX 75403-0875 >> 903-455-5036 >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: wireless@wispa.org >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > -- Marco C. Coelho Argon Technologies Inc. POB 875 Greenville, TX 75403-0875 903-455-5036 -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
