I am a big believer in building even if you are looking to sell. Probably not in the majority or maybe even smart basic business sense. I have seen too many buyouts go sideways. They all take a year to either complete or fall apart. If I keep building I figure it doesn't matter if the sale goes through or not. I either have more revenue/EBITDA to sell or more to keep. At some point a price is fixed and at that point you need to already have something in the contract to account for equipment purchases.
When I sold, JAB agreed to pay THEIR price for all equipment I bought after the sell price was fixed. This allowed me to keep building. We were using the same type of equipment they were so I don't think they cared a whole lot. It made me feel better that I could walk away and not lose any time and from my point of view, gave me better bargaining power because of it. Once the decision is made to sell, it often can be unrecoverable if things fall apart. A mental suicide not for business leader I guess. On Sun, Aug 23, 2020 at 10:58 AM Matt Hoppes < mattli...@rivervalleyinternet.net> wrote: > I’ve purchased almost everything around me at this point. > > What’s left? Sell. Or build - which is what we’re doing now. > > On Aug 23, 2020, at 11:54 AM, Ken Hohhof <af...@kwisp.com> wrote: > > > > I seem to remember this thread started with a post about buying, but there > seems to be a lot of interest in selling. I wonder why. > > > > Is it because customers are getting on our nerves? I know they’re getting > on mine. Everyone is stuck in their house doing everything on the Internet > and whining about it and waiting until the last minute and then needing > stuff right now this minute because we’re > streaming/gaming/Zooming/eLearning/teleworking here. Plus doing > construction on our house and the contractors are here right now taking > your dish off the roof or putting siding nails through your cable. Or > they’re buying/selling houses because interest rates are like zero or to > move away from the virus or to a different school district. > > > > > > *From:* AF <af-boun...@af.afmug.com> *On Behalf Of *Mike Hammett > *Sent:* Sunday, August 23, 2020 10:05 AM > *To:* AnimalFarm Microwave Users Group <af@af.afmug.com> > *Subject:* Re: [AFMUG] Buying and selling ISP’s > > > > I know it *CAN* be anything. > > > > I'm asking what it is for successful, arms-length, nothing special > transactions. I do expect there to be a range. > > > > > > ----- > Mike Hammett > Intelligent Computing Solutions <http://www.ics-il.com/> > <https://www.facebook.com/ICSIL> > <https://plus.google.com/+IntelligentComputingSolutionsDeKalb> > <https://www.linkedin.com/company/intelligent-computing-solutions> > <https://twitter.com/ICSIL> > Midwest Internet Exchange <http://www.midwest-ix.com/> > <https://www.facebook.com/mdwestix> > <https://www.linkedin.com/company/midwest-internet-exchange> > <https://twitter.com/mdwestix> > The Brothers WISP <http://www.thebrotherswisp.com/> > <https://www.facebook.com/thebrotherswisp> > > > <https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> > ------------------------------ > > *From: *"Chuck McCown" <ch...@wbmfg.com> > *To: *"AnimalFarm Microwave Users Group" <af@af.afmug.com> > *Sent: *Saturday, August 22, 2020 10:28:58 PM > *Subject: *Re: [AFMUG] Buying and selling ISP’s > > That can be anything. There is no connection between revenue and > earnings. You can have $2M in revenue but -$5M in income if you burned > cash to generate sales. > > Sent from my iPhone > > > > On Aug 22, 2020, at 7:35 PM, Mike Hammett <af...@ics-il.net> wrote: > > > > Right, but what I'm asking is that if 5x EDIBTA = Y, then what was Y / > annual revenue? > > > > ----- > Mike Hammett > Intelligent Computing Solutions <http://www.ics-il.com/> > <https://www.facebook.com/ICSIL> > <https://plus.google.com/+IntelligentComputingSolutionsDeKalb> > <https://www.linkedin.com/company/intelligent-computing-solutions> > <https://twitter.com/ICSIL> > Midwest Internet Exchange <http://www.midwest-ix.com/> > <https://www.facebook.com/mdwestix> > <https://www.linkedin.com/company/midwest-internet-exchange> > <https://twitter.com/mdwestix> > The Brothers WISP <http://www.thebrotherswisp.com/> > <https://www.facebook.com/thebrotherswisp> > > > <https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> > ------------------------------ > > *From: *"Chuck McCown" <ch...@wbmfg.com> > *To: *"AnimalFarm Microwave Users Group" <af@af.afmug.com> > *Sent: *Saturday, August 22, 2020 10:01:44 AM > *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 <http://www.ics-il.com/> > <https://www.facebook.com/ICSIL> > <https://plus.google.com/+IntelligentComputingSolutionsDeKalb> > <https://www.linkedin.com/company/intelligent-computing-solutions> > <https://twitter.com/ICSIL> > Midwest Internet Exchange <http://www.midwest-ix.com/> > <https://www.facebook.com/mdwestix> > <https://www.linkedin.com/company/midwest-internet-exchange> > <https://twitter.com/mdwestix> > The Brothers WISP <http://www.thebrotherswisp.com/> > <https://www.facebook.com/thebrotherswisp> > > > <https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> > ------------------------------ > > *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 > > > > -- > > 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 > > > -- > 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 > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > -- Lewis Bergman 325-439-0533 Cell
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