I don't have a lot of acquisition experience. It's been many years since we acquired anyone so take the following with a grain of salt.
I would argue that the only thing of value in many WISPs are their customers. So you have to start with how much you think those customers are worth once you transition them to your network, which is basically revenue. In my mind, 1X *expected* revenue is a good figure for a WISP that their network is good enough that you don't have to immediately dump a pile of cash in, but you expect to basically forklift the entire thing onto your network over the next 12 months. One has to factor in some costs and assets as well. A WISP which has built their own high-quality tower sites and owns the ground under them is going to be worth more than a wisp which is leasing vertical space at too high of a price. The right equipment being in place to match your network adds value. Old crap which has to be immediately replaced reduces it. At some point, I guess this comes down to EBIDTA, but there are so many ways a WISP can mess with the expense side of the equation that I would be skeptical that the figure produced by an existing owner is the right one. I.E. how much salary the owner is taking, how many employees, what types of vehicles are being purchased/used, are they deploying high end cambium gear or the cheapest thing they can find from china, and on and on. On Fri, Aug 21, 2020 at 7:21 PM Chuck McCown <ch...@wbmfg.com> wrote: > 5 x ebidta > Revenue multiples are of no value. > > Sent from my iPhone > > On Aug 21, 2020, at 5:30 PM, cjwstudios <cjwstud...@gmail.com> wrote: > > > 1x annual revenue and hope the customers stay on > > On Fri, Aug 21, 2020 at 5:43 PM Matt Hoppes < > mattli...@rivervalleyinternet.net> wrote: > >> This is the issue I’ve always had when I’ve looked at buying an ISP. It >> always seems like a lot more money I would have to put out to buy then I >> could just build and take the customers if something is wrong with the >> current network. >> >> >> >> > On Aug 21, 2020, at 12:43 PM, Seth Mattinen <se...@rollernet.us> wrote: >> >> > >> >> > On 8/20/20 8:13 PM, Steve Jones wrote: >> >> >> I think you either buy or sell, isp isnt really a flip thing >> >> > >> >> > >> >> > There is/was someone in my part of the country buying up ISPs and >> trying to package them all together as a flip. My ISP customers tell me >> it's far easier to get the flipper's customers to cancel and switch than >> buy their company. >> >> > >> >> > -- >> >> > AF mailing list >> >> > AF@af.afmug.com >> >> > http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> >> >> -- >> >> AF mailing list >> >> AF@af.afmug.com >> >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > -- - Forrest
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