I had a meeting a couple weeks ago with a company looking to buy us. They have deep pockets and were looking at cash only deal. If I'm looking to sell, it's obviously because I want to go in a different direction. The last thing I'd want to do is go through the enter sale process only to have to take the company back at a later date. Even if I was able to get my company back immediately months later with zero customer loss, the time, effort and lost growth just aren't worth the risk in my opinion.
On Wed, Mar 19, 2014 at 5:09 PM, Hass, Douglas A. <[email protected]> wrote: > Primary housing is a different deal altogether. Unlike businesses, > where you can get immediate repossession, you often can't with housing. > > > > *From:* [email protected] [mailto:[email protected]] *On > Behalf Of *CBB - Jay Fuller > *Sent:* Wednesday, March 19, 2014 4:02 PM > > *To:* WISPA General List > *Subject:* Re: [WISPA] Selling ISP > > > > > Then why do people sell houses on owner financing ? > > Sent from my Verizon Wireless 4G LTE Smartphone > > ----- Reply message ----- > From: "Justin Wilson" <[email protected]> > To: "WISPA General List" <[email protected]> > Subject: [WISPA] Selling ISP > Date: Wed, Mar 19, 2014 3:50 PM > > > > Having been a part of a deal gone bad I recommend cash up > front. Once you hand over the keys it's pretty hard to get it back. If > you have to go to Litigation you are going to be spending money out of > pocket for attorneys. I agree with Cameron. Cash at closing. If you > don't do 100% cash at closing you should be prepared to not see another > dime if you do anything else. > > > > I know ISPs who sold, got some money at closing, and then > ended up spending twice that money on attorney fees and still ended up with > nothing. Selling a business should be like selling a high dollar item. If > I was going to sell a car I sure wouldn't sell it on contract. Too many > things can go wrong. > > > > If I had 100% ownership in an ISP today and wanted to sell I > would take a hit on the overall price. If then user couldn't afford it and > I really needed to sell for whatever reason I would simply take a lower > price. Less stress that way. > > > > Justin > > > > > > -- > > Justin Wilson <[email protected]> > > MTCNA - CCNA - MTCRE - MTCWE - COMTRAIN > Aol & Yahoo IM: j2sw > http://www.mtin.net/blog - xISP News > http://www.zigwireless.com - High Speed Internet Options > > http://www.thebrotherswisp.com - The Brothers Wisp > > > > > > > > *From: *"Hass, Douglas A." <[email protected]> > *Reply-To: *WISPA General List <[email protected]> > *Date: *Wednesday, March 19, 2014 at 3:08 PM > *To: *WISPA General List <[email protected]> > *Subject: *Re: [WISPA] Selling ISP > > > > 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:* [email protected] > [mailto:[email protected]<[email protected]>] > *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 <[email protected]> > wrote: > > There's many more buyers out there. > > > > > > ----- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > ------------------------------ > > *From: *"Randy Cosby" <[email protected]> > > > *To: *"WISPA General List" <[email protected]> > > *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 > [email protected] > > *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 <http://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 <[email protected]> > > *To:*'WISPA General List' <[email protected]> > > *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 > [email protected] > www.e1w.com > > > > > -----Original Message----- > From: [email protected] > [mailto:[email protected]<[email protected]>] > On > Behalf Of Ryan Morgan > Sent: Wednesday, March 19, 2014 10:30 AM > To: [email protected] > 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 > [email protected] > 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 > [email protected] > http://lists.wispa.org/mailman/listinfo/wireless > > > > _______________________________________________ > > Wireless mailing list > > [email protected] > > 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. 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