RE: [WISPA] One method to calculate a fair Multiple for Evaluation
True if the business doesn't rely on real estate. Many businesses can operate no matter where they reside because they don't depend on location. Fixed wireless certainly relies on location due to the inherent LOS issues. There is additional value to businesses that have established ties to the community, name recognition etc. For example we purchased a retail establishment primarily due to location and reputation. The company had been around more than 15 years before we purchased it. The primary asset was reputation. Very little inventory and only a month to month lease on a leaky building from which it operated. We bought the name, reputation added a little cash. Over the next few years we purchased the land, built a new building and were generating more than 12 times the revenue. Ten years later someone walks in inquiring about purchasing the operation. We say we're flattered, but sorry the company isn't for sale. Again, we were proven wrong and the company sold. This occurred because the buyer was more motivated than the seller. This type of sale occurs every day. Whether it's real estate property or a profitable company with assets not easily duplicated. Best, Brad -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Matt Liotta Sent: Thursday, December 07, 2006 7:23 PM To: WISPA General List Subject: Re: [WISPA] One method to calculate a fair Multiple for Evaluation Brad Belton wrote: > We've owned property that simply wasn't for sale...we were proven wrong. At > the right price anything is for sale! > > That is the great thing about real estate; location matters. In other industries, it is easy enough just go around if the business isn't for sale. We have now deployed in several markets that had existing players that weren't interested in a deal. Since we wanted to be in the market and the existing player wasn't interested we had no choice. In the case of real estate, we would have just been out of luck. -Matt -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] One method to calculate a fair Multiple for Evaluation
Brad Belton wrote: We've owned property that simply wasn't for sale...we were proven wrong. At the right price anything is for sale! That is the great thing about real estate; location matters. In other industries, it is easy enough just go around if the business isn't for sale. We have now deployed in several markets that had existing players that weren't interested in a deal. Since we wanted to be in the market and the existing player wasn't interested we had no choice. In the case of real estate, we would have just been out of luck. -Matt -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
[WISPA] Re: Vendor membership for Robert Kim
Sorry, I should have suggested Sponsorship, not vendor membership. At $10,000/year, Silver Sponsorship would *still* be a bargain for you. On 12/7/06, Dylan Oliver <[EMAIL PROTECTED]> wrote: Okay, we heard you already. One thread for this discussion is plenty. The established mechanism for getting your link on the front page of wispa.org is to become a vendor member. You say you've spent $1200/mo on Google Ads - I'll give you a lot more credit if you apply that same amount to a *year* of membership in WISPA, which, by your own claims, will have a much greater impact on your visibility. On 12/7/06, Robert Kim Wireless Internet Advisor <[EMAIL PROTECTED]> wrote: > > Google ads is effective but by FAR the most expensive way to get > potential customer traffic. > > You're better off showing up in the main search results section. If > you're interested, lets get to page one of "wimax" and "wireless > internet" > > personally i spent $1200/m on adwords and got about $1200 in profit > back. Now, i'm #2 in google for "EVDO" and it increased my traffic and > sales by 2500% > -- Dylan Oliver Primaverity, LLC -- Dylan Oliver Primaverity, LLC -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
[WISPA] Vendor membership for Robert Kim
Okay, we heard you already. One thread for this discussion is plenty. The established mechanism for getting your link on the front page of wispa.org is to become a vendor member. You say you've spent $1200/mo on Google Ads - I'll give you a lot more credit if you apply that same amount to a *year* of membership in WISPA, which, by your own claims, will have a much greater impact on your visibility. On 12/7/06, Robert Kim Wireless Internet Advisor <[EMAIL PROTECTED]> wrote: Google ads is effective but by FAR the most expensive way to get potential customer traffic. You're better off showing up in the main search results section. If you're interested, lets get to page one of "wimax" and "wireless internet" personally i spent $1200/m on adwords and got about $1200 in profit back. Now, i'm #2 in google for "EVDO" and it increased my traffic and sales by 2500% -- Dylan Oliver Primaverity, LLC -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] surprising sources for sales leads
Google ads is effective but by FAR the most expensive way to get potential customer traffic. You're better off showing up in the main search results section. If you're interested, lets get to page one of "wimax" and "wireless internet" personally i spent $1200/m on adwords and got about $1200 in profit back. Now, i'm #2 in google for "EVDO" and it increased my traffic and sales by 2500% On 11/21/06, Peter R. <[EMAIL PROTECTED]> wrote: Everyone has problems with Execution. The key is How Bad Do You Want it, What is Your Why?, and a Routine (schedule). Thanks for the kind words about the blog. I used to have a monthly newsletter, but it was easier to do a blog. Happy Thanksgiving! Regards, Peter RAD-INFO, Inc. MarketingIDEA guy.com Tom DeReggi wrote: >> >> >> - Peter > -- Robert Q Kim, Wireless Internet Provider http://evdo-coverage.com/satellite-wireless-internet.html http://evdo-coverage.com 2611 S. Pacific Coast Highway 101 Suite 203 Cardiff by the Sea, CA 92007 206 984 0880 -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Lead - Glenwood, WA k-12 School Needs Internet
Guys. if you dont mind, I'll just keep posting these leads to wispa. i get several calls a day asking for fixed wireless and i just tellem to go to wispa.org but i can take the extra step and submit their contact info to y'all. BUT PS. driving traffic to http://map.wireless-internet-access-provider.com/ is better for me and y'all since currently, i'm the bottleneck in sending you leads. i'd rather you get the calls directly so i save time =) OH WAIT, who owns wispa.org? can we get a link from the homepage to http://map.wireless-internet-access-provider.com ? On 11/29/06, Marlon K. Schafer <[EMAIL PROTECTED]> wrote: lol I saw it first! Good luck with them. Have fun. - Original Message - From: "Forbes Mercy" <[EMAIL PROTECTED]> To: "WISPA General List" Sent: Wednesday, November 29, 2006 8:59 AM Subject: RE: [WISPA] Lead - Glenwood, WA k-12 School Needs Internet > Marlon, > > HA! NorthEAST 509 may be yours but I'm all about CENTRAL 509. I feel we > are about to throw down some rap song, WORD! > > Forbes > > -Original Message- > From: [EMAIL PROTECTED] on behalf of Marlon K. Schafer > Sent: Tue 11/28/2006 10:25 PM > To: WISPA General List > Cc: > Subject: Re: [WISPA] Lead - Glenwood, WA k-12 School Needs Internet > > > > 509 is my turf. I'll touch base with him. > > Thanks much! > marlon > > - Original Message - > From: "Robert Kim Wireless Internet Advisor" <[EMAIL PROTECTED]> > To: "WISPA General List" > Sent: Tuesday, November 28, 2006 10:16 AM > Subject: [WISPA] Lead - Glenwood, WA k-12 School Needs Internet > > > > team, im talking with the the superintendent glenwood school. he wants > > to know if anybody can set up a wisp service for the locality. > > > > contact > > shane c > > 509 364 3438 x203 > > > > zip 98619 > > > > bob kim > > http://evdo-coverage.com > > http://iptv-coverage.com > > http://wimax-coverage.com > > -- > > WISPA Wireless List: wireless@wispa.org > > > > Subscribe/Unsubscribe: > > http://lists.wispa.org/mailman/listinfo/wireless > > > > Archives: http://lists.wispa.org/pipermail/wireless/ > -- > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > > > -- > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- Robert Q Kim, Wireless Internet Provider http://evdo-coverage.com/satellite-wireless-internet.html http://evdo-coverage.com 2611 S. Pacific Coast Highway 101 Suite 203 Cardiff by the Sea, CA 92007 206 984 0880 -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Biz Dev Proposal
PS... pls post your company info at http://wimax-coverage.com if you're going to advertise, make it very factual with no sales language. that site gets a lot of people looking for wimax / wisp services... and make sure you add your coverage area to: http://map.wireless-internet-access-provider.com/ All i want is one banner space for folks needing MOBILE internet and wispa can have the rest of the bizness -- Robert Q Kim, Wireless Internet Provider http://evdo-coverage.com/satellite-wireless-internet.html http://evdo-coverage.com 2611 S. Pacific Coast Highway 101 Suite 203 Cardiff by the Sea, CA 92007 206 984 0880 -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
RE: [WISPA] One method to calculate a fair Multiple for Evaluation
True, but a sure fire way to have a motivated seller is first to have a motivated buyer. We've owned property that simply wasn't for sale...we were proven wrong. At the right price anything is for sale! Best, Brad -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Matt Liotta Sent: Thursday, December 07, 2006 1:26 PM To: [EMAIL PROTECTED]; WISPA General List Subject: Re: [WISPA] One method to calculate a fair Multiple for Evaluation Peter R. wrote: > Tom, > > It is a negotiation between what one is willing to pay for a business > and what one is willing to sell it for. > Everything is for sale. It is a matter of the price whether they will > or not. > Which is why evaluation models only serve to get the negotiation started; not to motivate a seller. Without a motivated seller all the evaluation models in the world fair or not are moot. -Matt -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Biz Dev Proposal
Marlon, the way google works, you either pay TONS of money (about $1.50-$4.00 per click) or you get to page 1 of google under a search term. I can offer WISPA as a community large numbers of google traffic. Since I already get tons of traffic to http://wimax-coverage.com i can send you my the traffic that is NOT right for my biz. (50% need fixed broadband not wireless) try googleing "wimax coverage" and "wimax access" BUT under the biggest traffic terms, wireless internet (12,000 visitors a day) wimax (4000 visitors a day) my websites: http://evdo-coverage.com http://wimax-coverage.com are on page TWO. 98% less traffic than page 1. So... if everybody just made a link from their home page to mine, then google would bounce the above 2 sites to page 1 and i'd directly flow all those who need fixed broadband to http://map.wireless-internet-access-provider.com As a team, we can accomplish our goals within 2 weeks. On 12/5/06, Marlon K. Schafer (509) 982-2181 <[EMAIL PROTECTED]> wrote: I like what you are saying Robert. I'm just not sure how to implement what you are asking. I guess I'm not sure what you are asking for. Marlon (509) 982-2181 Equipment sales (408) 907-6910 (Vonage)Consulting services 42846865 (icq)And I run my own wisp! 64.146.146.12 (net meeting) www.odessaoffice.com/wireless www.odessaoffice.com/marlon/cam - Original Message - From: "Robert Kim Wireless Internet Advisor" <[EMAIL PROTECTED]> To: "WISPA General List" Sent: Monday, December 04, 2006 11:28 AM Subject: [WISPA] Biz Dev Proposal > Marlon, Brad, I can send wispa business. > > Personally, I'm a google marketing guy. most of our business comes > from google... > under a search for "evdo" > > according to adwords.google.com traffic estimator, > > under the terms, > > "wimax" > and > "wireless internet" > > you'd get 1800 visitors and 19000 visitors respectively. only a > fraction of these visitors are right for my company. the rest are > better fits for you wisp owners. > > So... help me send biz your way. > 1. use http://wimax-coverage.com to post news and press releases about > your company > include: > address (people search for city names) > url to your website > relevant sales teasers > > 2. link to http://evdo-coverage.com using code: > http://evdo-coverage.com";>wireless internet > > we are #11 in google under "wireless internet" > > when we hit > #4, our traffic will increase 40X and I'll post a large > banner for the wisp map where you've already posted your service > areas... http://map.wirelessinternetcoverage.com/ > > thoughts? > questions? > > > On 12/4/06, Brad Belton <[EMAIL PROTECTED]> wrote: >> This only adds more fuel to the argument that simply placing a multiple >> on a >> company isn't where the "smart money" is. >> >> Revenue is largely irrelevant. Profits are King. Revenue doesn't put >> kids >> through school or buy that new car...bottom line profit does. >> >> The concept of fixed wireless has long lost its sizzle. Simply stating >> you're able to cut out the LEC and reap those dollars yourself doesn't >> excite like it used to. Profits, real estate assets, contractual >> agreements, client base are key deal points in today's market. >> >> While I agree WinStar and Teligent didn't do the fixed wireless industry >> any >> favors, most of the bridges burned were with building management and not >> the >> end user market. Investor relationships may have also taken a toll, but >> again the "smart money" isn't going to get all wrapped up in the sizzle. >> They will be looking for real assets and real earnings. >> >> Best, >> >> >> Brad >> >> >> >> >> -Original Message- >> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On >> Behalf Of Matt Liotta >> Sent: Monday, December 04, 2006 11:55 AM >> To: WISPA General List >> Subject: [WISPA] Industry failings >> >> One the biggest factors holding our industry back is a lack of success >> on the part of the big poster children. People look at the past failures >> of WinStar and Teligent and wonder if new entrants can succeed. Many >> investors are watching FiberTower and NextLink to see if these new >> poster children can prove the business model. >> >> It doesn't really matter that neither FiberTower or NextLink are >> representative of our industry. What matters is they are both publicly >> traded fixed wireless companies. This means that all fixed wireless >> companies are viewed through the lens of these publicly traded companies >> since they are the only ones with enough information for people to draw >> conclusions on. >> >> If you look at FiberTower's and NextLink's latest numbers you should be >> very worried. NextLink is failing and I predict will be out of business >> in the not too distant future. FiberTower is much better off than >> NextLink, but they are burning cash at an impressive rate. One can >> easily predict them running o
Re: [WISPA] Effect of Snow on 900
What type of antenna are you using a yagi or panel, what was your signal strength at install. Yagis, particularly the 17db by M2 is sensitive to snow/ice build up,it gets slightly detuned, their 14dbi antenna does better under those conditions. Panels of course are pretty much immune and I have heard but not tried some of the grids, but most don't have the performance of the M2. We found if the snow was wet and heavy enough will accumulate on trees, pines are the worst. We have seen drops of 10-20dbs with yagis and wet snow. The last people to recover were the one with a pine shelter belt. The only other possibility is water/ice intrusion in to a poorly sealed connector. If you are using the 3006 out door unit this is all a moot point and it is simply a heavy wet snow load that is causing the problems. I've been doing WR for almost 5 years so let me know if this does not help. Erik Mark Koskenmaki wrote: I put in a customer's CPE just as the snow season started at my customer's house in the mountains. They had around 2 inches of snow on the ground, and of course, some clung to the trees. They were gone for Thanksgiving weekend, and when they got back, it was a few days before I could get back to finish up inside. When I left, we had a nice solid link, though it went through quite a few trees right by the client end, at a total distance of about three miles, but the sky visible through the trees we had to run through. When I got back yesterday, we can't even see the AP on a site survey. The only difference is that now there's maybe a food of snow and of course, somewhat more stuck to the trees. Client and AP are both WAR boards with SR9's and 9 db yagi's. Does snow block 900 that effectively? Our testing showed earlier that in town, you can get a weak signal with a site survey even standing on the ground, through a mile or more of houses, trees, etc.We tried re-aiming, but nothing. Did I have something else go wrong, or does snow clinging to a few branches totally wipe out an additional 15 or more db of RSSI? +++ neofast.net - fast internet for North East Oregon and South East Washington email me at mark at neofast dot net 541-969-8200 Direct commercial inquiries to purchasing at neofast dot net -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
[WISPA] Municipal Wireless Market Takes Flight over Last 12 Months
Municipal Wireless Market Takes Flight over Last 12 Months - The municipal wireless market is gaining momentum as government initiatives to provide large access networks are moving into the trial stage and WiMax technology matures. Nortel's WiMax solution is being tested by Chunghwa Telecom in Yilan, Taiwan, as part of the local government's Mobile Taiwan project. In addition to deploying a mobile WiMax network in this northeastern county, Nortel is also deploying a WiMax network at the National Taiwan University campus and at an expiremental park in Taipei. Nortel's wireless solution includes its own MIMO antenna technology, enabling provisioning for voice services over WiMax. The Mobile Taiwan project aims to provide broadband access coverage to 8 million residents or 80% of the urban population. Japan's Ministry of Internal Affairs and Communications has also chosen Nortel's WiMax solution as it moves to test wireless technologies for its Next Generation Broadband Strategy 2010 initiative, which includes a vision to provide broadband access services across the country within the next 4 years. Nortel's base stations for both fixed and mobile WiMax will be initially tested in Ishinomaki, a port city on Honshu Island in Tohuku's Miyagi Prefecture. Nortel's WiMax equipment is also being tested by carriers in Germany, Canada, Greece, Russia, and Mexico. Fintel, a telecom service provider owned by the Fiji government and Cable and Wireless, will deploy Alvarion's WiMax technology in the capital city of Suva, with plans to expand the deployment to more than 330 islands in the south Pacific achipelago. Alvarion's most recent WiMax solutions support both WiMax and Wi-Fi. The company's BreezeMAX solution has been deployed in more than 200 installations in more than 80 countries. As WiMax technology emerges, municipal WiFi networks continue to be deployed throughout the world. Recently, Omni-Directional Communication Products Oy chose to implement InspiAir's Wi-Fi network in Helsinki. InspiAir's solution is an alternative to mesh networks, in that the vendor's system employs a 802.11 algorithm known as Virtual Transmission Manager, which enables a municipal Wi-Fi to require fewer access points than a mesh system. The company also claims the technology provides superior network performance. In the U.S., Galaxy Internet Services announced that it would be deploying Strix Systems' wireless mesh network in Brookline, Massachusetts. Strix's technology supports long-range 4.9 GHz capability using the DSRC mask, which provides double the coverage area compared to standard 4.9 GHz. According to MuniWireless.com, municipal wireless network deployments in the U.S. have increased from 38 in July of 2005 to 68 in September of this year. Planned deployments (RFP and RFI issuances) have increased from 34 to 135 over the same period. To view a detailed list of cities and counties that have deployed municipal networks, check out MuniWireless.com's research at: http://www.muniwireless.com/reports/docs/Sept-10-2006summary.pdf The IP Pulse -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Waverider
What do you want to know? Stability and software is excellent, great polling mechanism. 2mb Ethernet through put. I have seen them maintain a connection (in a clean rf environment) down to about -98db 10db below spec. Erik chris cooper wrote: So does anyone have the latest scoop on WaveRider? Stability, product pipeline etc. It seems like most of the old names/faces are gone. Chris -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
[WISPA] Waverider
So does anyone have the latest scoop on WaveRider? Stability, product pipeline etc. It seems like most of the old names/faces are gone. Chris -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] One method to calculate a fair Multiple for Evaluation
Peter R. wrote: Tom, It is a negotiation between what one is willing to pay for a business and what one is willing to sell it for. Everything is for sale. It is a matter of the price whether they will or not. Which is why evaluation models only serve to get the negotiation started; not to motivate a seller. Without a motivated seller all the evaluation models in the world fair or not are moot. -Matt -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] One method to calculate a fair Multiple for Evaluation
Tom, It is a negotiation between what one is willing to pay for a business and what one is willing to sell it for. Everything is for sale. It is a matter of the price whether they will or not. Peter -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
[WISPA] One method to calculate a fair Multiple for Evaluation
In determining a sale value in terms of "multiple of annual revenue", a whole range of values have been reported as "fair", ranging from 4x monthly to 4x annual. Which is it? I think most make a mistake by focusing on industry historical record, instead of looking at the most relevent factor, one's own business plan. One's business plan is what determined the calculated ROI, and what the financial return is for the technical decissions that are made in one's business. The pre-defined ROI, (if gaols are met) heavilly factors the value of one's network and their business model. Technically, what gear someone uses, what market they go after, or the size of their business is irrelevent. If you use more expensive gear, you will ahve a longer precalculated excepted ROI, (which has a defined value), and therefore your multiple should be LARGER to cover those additional years defined in the plan. This is what I mean... When I started this business 5 years ago, it was not uncommon to have a two year ROI per subscriber, just on equipment alone. (Alvarion 5 years ago.). IF the business owner got into this business initially knowing and understanding that there would be a two year ROI (2 x annual), it has established the MINIMUM value of the network in a sale (what it would cost the buyer to rebuild, and obtain the customers, without any FREE revenue that may have already gotten its ROI). For example Selling it at 6x monthly, would be stupid, as one would be selling it for 1/4 the cost that the seller was initially willing to invest to start the business for the planned ROI. Any thing above 2X annual, would be the additional value that the business has created above its planned business model, and what profit the seller wants to make for creating the ROI. (The only exception to this would be, if an ROI has already been acheived, and the network is degrading and loosing its useful life). Times however are changing. Its not uncommon for business models to be based on receiving a 3-6month ROI on CPE, or 12 month ROI on all costs of customer aquisition. For example if OEM radios are used that cost half the cost. The OEM radios may hold their value jsut as good as name brand gear, its just that their value will be a lower number, as on the Business plan its reduced value is already reflected by the lower cost of the gear. So I would argue, that multiples should not be offered on revenue, but instead on factoring ROI. For example if the ROI on a network business plan is 6 month. Then it would be logical for the starting point of the evaluation to be 6X monthly revenue. The point that I'm making is that the multiple that is fair depends on the investment that is made initially, and due diligence is the process to verify that that business plan was executed, and money invested was spent as represented, and not just wasted or burned. Sure there are many other factors that effect end game evaluation. New market trends, hype, desperation, time, quality of staff, barriors to entry, etc. But in defining a value it all starts from a basis, that first must be defined. That basis, is a WISP's business plan. A WISP that has a clear business plan, can justify their basis for the starting minimum acceptable multiple, before considering potential. If a business was built on a 2 year ROI, including what fair salaries would be, and the business owner did not take a salary (for finance reasons, prefered to invest it in the company), he would be entitled to add additional dollar to the sale to pay him back for his investment (waived salary) as calculated what the salary should be in the acceptable business plan. In otherwords, an evaluation should not be penalized because the seller did better than his business plan because he made sacrifices as a form of investment. Why this is relevant is that very few WISP, have reached ROI on their business. That is because, they continue to reinvest their profits in growing their business, and they should not be penalized for doing that in their evaluation. A company that finances everything out 5 years, may then have a longer duration to reach an ROI which needs factoring to make relevant. For example, financing out longer may imporve profit or cashflow, but by the time the equipment (and cost to obtain subscrier) would be paid off (in 5 years), the WISP would may have already reached Multiples of an ROI, as money was taken our early in advance of paying off the investment tha tgenerated it. So if the WISP sells near the end of the finance term, the WISP deserves to make a higher return on the investment, because they already paid back the costs to obtain client. But if the WISP selling early in the finance term, you must deduct from the mutiple of current revenue, a portion proportional to the unrealized investment. For example if a 2 year ROI is standard acceptance, and the current finance has a payoff ter
