In reality the after tax profit or pre tax profit is the thing you are
after. Pre tax EBIDTA numbers are better because you can all kinds of tax
management things if you have other companies or other revenue streams. And
depending on whether you are a partnership S or C corp the taxation will be
different.
So EBIDTA is more of a true profit number.
-----Original Message-----
From: Steve
Sent: Wednesday, February 15, 2017 2:54 PM
To: af
Subject: Re: [AFMUG] Current Market Value
God points.
Also about the EBITA - that is an interesting take on it. Thanks.
----- Original Message -----
From: "Lewis Bergman" <lewis.berg...@gmail.com>
To: "af" <af@afmug.com>
Sent: Tuesday, February 14, 2017 4:11:47 PM
Subject: Re: [AFMUG] Current Market Value
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?
