Yeah, like 4X EBIDTA
-----Original Message-----
From: Keefe John
Sent: Tuesday, February 14, 2017 10:47 AM
To: af@afmug.com
Subject: Re: [AFMUG] Current Market Value
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?
