i hear that and 4x ebidta over and over. in terms of they don't know what
ebitda does i don't even ask for those numbers. after initial conversations i
always ask for a years worth of bank statements. i've been known to go back
three years. i can plug that data into quickbooks in a day and then pull
pretty much whatever financial data i need to pull. and it does not offend
the company you are trying to purchase who is almost guaranteed to now know
that ebitda is (earnimngs before interest tax and depreciation)
----- Original Message -----
From: Mike Hammett
To: af@afmug.com
Sent: Wednesday, January 11, 2017 8:07 PM
Subject: Re: [AFMUG] Price per sub?
I hear that is around 12x - 18x months of revenue and a heck of a lot easier
to calculate when ballparking. They know their revenue (or well, is somewhat
easy to figure out). They probably can't spell EBITDA.
-----
Mike Hammett
Intelligent Computing Solutions
Midwest Internet Exchange
The Brothers WISP
------------------------------------------------------------------------------
From: "Chuck McCown" <ch...@wbmfg.com>
To: af@afmug.com
Sent: Wednesday, January 11, 2017 3:16:00 PM
Subject: Re: [AFMUG] Price per sub?
4x ebitda
From: Josh Reynolds
Sent: Wednesday, January 11, 2017 2:14 PM
To: af@afmug.com
Subject: Re: [AFMUG] Price per sub?
How many subs?
On Jan 11, 2017 3:13 PM, "Brett A Mansfield" <li...@silverlakeinternet.com>
wrote:
When looking at buying a competitor, I'm wondering what everyone's thought
is on a price per sub? They don't do contracts and they use the litebeam
hardware.
I'm not looking for legal advice, just wondering what all of you think is
fair. This company has about a 90% take rate in the area they're in. Their
plans are $20, $40, and $50/mo.
Thank you,
Brett A Mansfield
