Doug, The problem I see with that is that you will most likely have to take the other party to court to enforce the terms of your agreement if one of the terms is breached. It could take months or even years to get a final judgement at which time there may be nothing left. This may be good advice for a non-wisp business, but in the fast paced world of broadband, customers will likely flee before a resolution is reached. If the buyer is left insolvent, you are left with nothing, and may be on the hook for all your own legal fees. I talked to three different business attorneys and they all told me to run from any seller financed deal regardless of who the buyer was. Again, if the buyer can't get financing on their own, are they a good buyer?
On Wed, Mar 19, 2014 at 2:55 PM, Hass, Douglas A. <d...@franczek.com> wrote: > Of course! You have to have a willing seller and buyer to start. My > point is that setting preconditions before you get started (as a buyer or > as a seller) unnecessarily limits what you ultimately would be able to do. > Don't take options off the table until you have a specific deal to > consider. Then is the time to say "I'm only taking cash" or "I'll finance, > but only with X, Y, and Z terms that protect me." > > > > Doug > > > > > > *From:* wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] *On > Behalf Of *CBB - Jay Fuller > *Sent:* Wednesday, March 19, 2014 2:53 PM > > *To:* WISPA General List > *Subject:* Re: [WISPA] Selling ISP > > > > > Depends on how bad you want to sell ...we don't always want to buy. > > Sent from my Verizon Wireless 4G LTE Smartphone > > ----- Reply message ----- > From: "Hass, Douglas A." <d...@franczek.com> > To: "WISPA General List" <wireless@wispa.org> > Subject: [WISPA] Selling ISP > Date: Wed, Mar 19, 2014 2:08 PM > > > > Cameron-- > > > > There's lots of ways to structure the deal so that you're protected, even > if the buyer is a complete imbecile and even if the buyer doesn't have cash > up front. If you want to sell or if you want to buy, don't let the > all-cash restriction prevent you from making a deal. If you end up in > court chasing payments from the buyer, then you likely didn't draft your > agreement carefully enough given your tolerance for risk (of course, your > due diligence should be telling you whether the buyer is an imbecile, and > that information should inform what kind of deal you're willing to accept). > > > > To categorically reject buyers who don't have 100% cash to hand you at > closing might mean leaving money on the table or more flexible terms from > someone who can put together a more attractive end package. In that sense, > it works like selling real estate. The all-cash offer isn't always your > best one. > > > > To Randy's point--Jab has undergone a major shakeup at the top. Many of > the senior executive staff have departed in the last few months. That > might account for some of the quietness. I don't have any inside > information, just what I learned trying to round up potential panelists and > speakers for WISPAmerica. > > > > Doug > > > > *From:* wireless-boun...@wispa.org > [mailto:wireless-boun...@wispa.org<wireless-boun...@wispa.org>] > *On Behalf Of *Cameron Crum > *Sent:* Wednesday, March 19, 2014 1:45 PM > *To:* WISPA General List > *Subject:* Re: [WISPA] Selling ISP > > > > The seller is not a bank. Why should they take on all the risk? What > happens if the buyer is a complete imbecile and runs the network into the > ground and defaults on payments? Now you are in court suing for money you > will most likely never see, and even if you retake possession of the > network, it may be in shambles or most of your customers have left. We > walked away from a couple of buyers who would not pony up the cash. I'd say > as one who sold a wisp, if the buyer can't afford it, or can't arrange > their own financing, you don't want to sell. > > > > On Wed, Mar 19, 2014 at 1:39 PM, Mike Hammett <wispawirel...@ics-il.net> > wrote: > > There's many more buyers out there. > > > > > > ----- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > ------------------------------ > > *From: *"Randy Cosby" <dco...@infowest.com> > > > *To: *"WISPA General List" <wireless@wispa.org> > > *Sent: *Wednesday, March 19, 2014 11:00:34 AM > > > *Subject: *Re: [WISPA] Selling ISP > > Is anyone actually buying right now? I haven't heard much about the big > buyer (Jab) lately. > > On 3/19/2014 9:49 AM, CBB - Jay Fuller wrote: > > > > The going rate, we've seen (and has been discussed here many times), is > about 1.5x annual revenue > > > *Douglas A. Hass* > Associate > 312.786.6502 > d...@franczek.com > > > *Franczek Radelet P.C. Celebrating 20 Years | 1994-2014 > <http://www.franczek.com/20thAnniversary/>* > > 300 South Wacker Drive > Suite 3400 > Chicago, IL 60606 > 312.986.0300 - Main > 312.986.9192 - Fax > www.franczek.com > > *Franczek Radelet is committed to sustainability - please consider the > environment before printing this email* > ------------------------------ > > *Circular 230 Disclosure: Under requirements imposed by the Internal > Revenue Service, we inform you that, unless specifically stated otherwise, > any federal tax advice contained in this communication (including any > attachments) is not intended or written to be used, and cannot be used, for > the purposes of (i) avoiding penalties under the Internal Revenue Code or > (ii) promoting, marketing or recommending to another party any transaction > or tax-related matter herein. * > ------------------------------ > > For more information about Franczek Radelet P.C., please visit > franczek.com. The information contained in this e-mail message or any > attachment may be confidential and/or privileged, and is intended only for > the use of the named recipient. If you are not the named recipient of this > message, you are hereby notified that any dissemination, distribution, or > copying of this message or any attachment thereto, is strictly prohibited. > If you have received this message in error, please contact the sender and > delete all copies. > ------------------------------ > > ----- Original Message ----- > > *From:* Eagle One Wireless <e...@e1w.com> > > *To:* 'WISPA General List' <wireless@wispa.org> > > *Sent:* Wednesday, March 19, 2014 10:33 AM > > *Subject:* Re: [WISPA] Selling ISP > > > > We priced ours at 2.5x gross revenue. We had about 10 companies contact us. > I would say 5 were serious but they wanted us to finance it so we decided > not to sell. > > Thanks, > > Kevin Melson > Eagle One Wireless > 1505 Hwy 72 E > Corinth, MS 38834 > 662-287-1722 > e...@e1w.com > www.e1w.com > > > > > -----Original Message----- > From: wireless-boun...@wispa.org > [mailto:wireless-boun...@wispa.org<wireless-boun...@wispa.org>] > On > Behalf Of Ryan Morgan > Sent: Wednesday, March 19, 2014 10:30 AM > To: wireless@wispa.org > Subject: [WISPA] Selling ISP > > What is the current rate for selling your ISP! I would like to sell, for > health reasons. > Thanks for your help! > Jean > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless > > > ----- > No virus found in this message. > Checked by AVG - www.avg.com > Version: 2014.0.4336 / Virus Database: 3722/7216 - Release Date: 03/19/14 > > ----- > No virus found in this message. > Checked by AVG - www.avg.com > Version: 2014.0.4335 / Virus Database: 3722/7208 - Release Date: 03/17/14 > > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless > > > > _______________________________________________ > > Wireless mailing list > > Wireless@wispa.org > > http://lists.wispa.org/mailman/listinfo/wireless > > > > -- > > Randy Cosby > > InfoWest, Inc > > 435-674-0165 x 2010 > > --- > > This e-mail message contains information from InfoWest, Inc > > and is for the sole use of the intended recipient(s) and may > > contain privileged, proprietary or confidential information. > > > > Unauthorized use, distribution, review or disclosure is > > prohibited. If you are not the intended recipient, please > > contact rco...@infowest.com by reply email and destroy > > the original message, all attachments and copies. > > > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless > > > > > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless > > > > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless > >
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