I sold to JAB. Got $9.5M for 6000 customers as I recall. Travis, Sterling and
I all sold about the same time to them.
Once debt was settled enough so that the remaining fiber portion of the company
could continue as a solvent company, we split it amongst the shareholders. The
two primary shareholders got a good chunk.
Then one of the shareholders' wives got greed and years of lawsuits against all
the other shareholders ensued...
So there’s that. (And huge capital gains bite).
From: Matt Hoppes
Sent: Saturday, August 22, 2020 9:03 AM
To: AnimalFarm Microwave Users Group
Subject: Re: [AFMUG] Buying and selling ISP’s
If someone offered me enough I might sell.
But it needs to be enough to be worth my while to walk away from:
A) a job I enjoy most days
B) walking away from recurring revenue for the next 10 years
C) enough to distribute to my employees who have helped build the company to
what it is today.
I’m not going to just take money and say “see what suckers!”
Most of them work as hard or harder than I do. They’re getting a chunk of any
sale that happens.
On Aug 22, 2020, at 10:56 AM, Ken Hohhof <af...@kwisp.com> wrote:
What stopped me from selling several years ago was the tax consequences.
Uncle Sam was going to get almost as much as I was.
It’s possible that hiring a good tax advisor in advance could improve this
situation. Also if you’re thinking about buying or selling, it would probably
make sense to look at current taxation of capital gains and any associated tax
dodges, and how that might change in various post-election scenarios.
Generally I’ve only been interested in cash deals. I remember when Keyon
wanted to buy me out with stock, and claimed that Keyon stock was “better than
cash” because it would increase in value. Next thing I heard, they were in
bankruptcy. But I have heard of merger-like acquisitions where the seller gets
stock and even an executive position in the acquiring company. For some
people, that might be a better situation, both from the standpoint of a
continuing income, and how much Uncle Sam grabs. Not sure if there would be a
capital gain if you get paid in stock, and what the cost basis would be for
that stock down the road if you sell it.
From: AF <af-boun...@af.afmug.com> On Behalf Of Steve Jones
Sent: Saturday, August 22, 2020 9:21 AM
To: AnimalFarm Microwave Users Group <af@af.afmug.com>
Subject: Re: [AFMUG] Buying and selling ISP’s
The boss wants to find some around here for sale, but jab/rise kind of
cleaned out the shelves. It seems the last few standing either did merger's or
are just standing on pure spite and irritation like us and wouldnt sell if
their teeth were getting pulled out.
On Sat, Aug 22, 2020, 9:16 AM Mike Hammett <af...@ics-il.net> wrote:
What does the revenue multiplier end up being, though?
5x EBIDTA / revenue gets you what, in purchases that have been made?
-----
Mike Hammett
Intelligent Computing Solutions
Midwest Internet Exchange
The Brothers WISP
----------------------------------------------------------------------------
From: "Chuck McCown" <ch...@wbmfg.com>
To: "AnimalFarm Microwave Users Group" <af@af.afmug.com>
Sent: Friday, August 21, 2020 8:20:47 PM
Subject: Re: [AFMUG] Buying and selling ISP’s
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
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