I agree. Our choices are 1) Overpay for something that is ok but not spectacular.. and put in all the work involved in migrating them into our network, spending money to upgrade and wait years for getting ROI. 2) Or continue to expand into an area with better equipment, more reliable speeds and compete.
They made the decision for us. However I was hoping some people had some experience and could offer their approximate values you've seen in the past. I want to be sure. ----- Original Message ----- From: "Lewis Bergman" <lewis.berg...@gmail.com> To: "af" <af@afmug.com> Sent: Tuesday, February 14, 2017 2:05:19 PM Subject: Re: [AFMUG] Current Market Value I have always approached this question from a single point of view. What is it worth to you? Once you know the answer to that question it doesn't really matter what they are asking. You offer what you are comfortable with. If they don't like it, you were already planning to expand so continue with those plans. They may become more reasonable. On Tue, Feb 14, 2017, 11:47 AM Keefe John <keefe...@ethoplex.com> wrote: > I would look at a multiple of estimated post-acquisition EBITA. That's > what JAB does. > > > On 2/14/2017 11:37 AM, Steve wrote: > > What is the current market value for a WISP? > > > > I've posted this before years ago and it hasn't changed much from my > experience. Its always been 12-16 months of your average revenue per > customer (ARPU). It depends on the equipment and all the rest. We've sold > before and we know what others have sold for. SO we generally have a good > idea what a WISP is worth. > > > > Now what if it were done with all the lower cost equipment (Mikrotik, > Ubiquiti) which is fine in many situations but we have all Cambium? We'd > have to replace it all to fit it into our system. In all honesty we'd > replace everything and probably take a couple years or more to get our > return on investment which is fine. But if someone is asking a great deal > more it isn't worth it. > > > > There are other factors such as strategic locations. IP space and all > the rest. However in our case we are already expanding in that direction > and thought this would be the quicker path. We'll spend about the same in > the next years putting up all new locations and equipment anyway. > > > > What is your opinion on the situation of someone who is asking way way > way more than what the market dictates? > >
