Frontier might get decertified in Moab Utah. Another company is requesting to
be named the provider of last resort there. If they are successful, you might
see Frontier disappear everywhere.
From: Ken Hohhof
Sent: Saturday, August 22, 2020 9:39 AM
To: 'AnimalFarm Microwave Users Group'
Subject: Re: [AFMUG] Buying and selling ISP’s
That is very dependent on whether the business is being run as “milking the
cash cow” or “reinvesting to grow the business”. Especially since section 179
allows a lot of capital purchases to be expensed in the first year.
I suspect many WISP owners prefer to add staff and equipment and towers and
customers, rather than declare profits and pay taxes. That doesn’t mean their
businesses are worth less to a buyer. Back when I worked for corporate
America, I remember around 1990 working for a public high tech company and at
stockholder meetings the CEO would be asked why the company at every earnings
statement would just break even or a little more. He would answer they were in
business to grow, not to pay taxes.
I am sometimes puzzled by competitors who seem to have crappy service, are
hated by their customers, and have high churn. Then I realize they are milking
the cash cow, spending as little as possible, and probably making as much or
more profit as I am. In the case of big, crappy companies, they probably don’t
sweat the churn because there are millions more suckers out there, you just
need advertising to rope some of them in to replace the cancellations. Like
when asked about Frontier, I describe them as the slum landlord of phone
companies.
From: AF <af-boun...@af.afmug.com> On Behalf Of Chuck McCown
Sent: Saturday, August 22, 2020 10:02 AM
To: AnimalFarm Microwave Users Group <af@af.afmug.com>
Subject: Re: [AFMUG] Buying and selling ISP’s
Whatever 5x your earnings are. Not sales or revenue or gross profit but bottom
line earnings on your income statement/ pl. Your taxable income.
Sent from my iPhone
On Aug 22, 2020, at 8:16 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.
>
> --
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> AF@af.afmug.com
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