All the numbers I have heard mentioned are pretty close. I acquired a couple of wisp companies. The only thing I would say is I only paid based on what they were doing at the moment. I refused to pay them for my cost advantages or what I could do with it.
One that had a bunch of old trango stuff I paid them 2x net for 2 years with the understanding that the expense to replace their crap was to be included. It ended up to be pretty cheap money wise but not time wise. They were going broke so just about anything was foods for them. In the end, I viewed it as a mistake. I think I could have picked up the pieces cheaper and with less hassles. Even though we did a better job their customers vied us as fresh meat to chew on. On Tue, Feb 14, 2017, 1:53 PM Chuck McCown <ch...@wbmfg.com> wrote: > 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? > >
