[WISPA] Questions for those that have bought/sold WISPs
I am a minority shareholder and am basically looking to sell out to my partner (a corporation). I know there has been a lot of discussion about valuing and selling WISPs over the years. It seems like the answers vary depending on equipment, customers, contracts, location, etc. The thing I see the most is selling for 1x, 1.5x, or 2x gross annual receipts, unless it is a failing company, in which case the number is dramatically lower. The only real difference for me is that I own less shares than the other partner. Has anyone bought/sold minority shares of a WISP, and is there anything different about valuing that? I'm looking at selling back my shares and want to make sure they're getting valued correctly. I have proposed 12-months gross receipts * my percentage. They are pushing for net revenue or gross profit - which are both net of expenses or net of cost of sales. I've never seen a net number used before - my dad sold his aerospace company about 15 years ago and used 12-months gross receipts + cash on hand for his sale number. In addition to this number, there are enterprise customer contracts that have been signed but have not been fully deployed yet, and therefore are not reflected on the books - it seems like these should be added to the value as well. On top of that, I am a co-signer on a line of credit for the company, how should that be handled? Has anyone dealt with that? Thanks in advance for any input or advice you guys can provide. Nick ___ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless
Re: [WISPA] Questions for those that have bought/sold WISPs
Why would it matter how big your stake is? Value * (% stake). I would get my name off the line of credit if I'm not going to have any of the benefits. Call the bank. Josh Luthman Office: 937-552-2340 Direct: 937-552-2343 1100 Wayne St Suite 1337 Troy, OH 45373 On Mon, Sep 3, 2012 at 1:15 PM, Nick W lists-wi...@atomsplash.com wrote: I am a minority shareholder and am basically looking to sell out to my partner (a corporation). I know there has been a lot of discussion about valuing and selling WISPs over the years. It seems like the answers vary depending on equipment, customers, contracts, location, etc. The thing I see the most is selling for 1x, 1.5x, or 2x gross annual receipts, unless it is a failing company, in which case the number is dramatically lower. The only real difference for me is that I own less shares than the other partner. Has anyone bought/sold minority shares of a WISP, and is there anything different about valuing that? I'm looking at selling back my shares and want to make sure they're getting valued correctly. I have proposed 12-months gross receipts * my percentage. They are pushing for net revenue or gross profit - which are both net of expenses or net of cost of sales. I've never seen a net number used before - my dad sold his aerospace company about 15 years ago and used 12-months gross receipts + cash on hand for his sale number. In addition to this number, there are enterprise customer contracts that have been signed but have not been fully deployed yet, and therefore are not reflected on the books - it seems like these should be added to the value as well. On top of that, I am a co-signer on a line of credit for the company, how should that be handled? Has anyone dealt with that? Thanks in advance for any input or advice you guys can provide. Nick ___ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless ___ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless
Re: [WISPA] Questions for those that have bought/sold WISPs
There is no set formula. This is a negotiation process you will have to deal with your other partners about. They can't force you out, and you can't demand a certain amount. You would ask for a number (start high), and they will counter with a number (low), and you go back and forth until you both reach a number everyone is happy with. Think of it as buying/selling a house... your shares are worth what they are willing to pay for them. Travis Microserv On 9/3/2012 11:15 AM, Nick W wrote: I am a minority shareholder and am basically looking to sell out to my partner (a corporation). I know there has been a lot of discussion about valuing and selling WISPs over the years. It seems like the answers vary depending on equipment, customers, contracts, location, etc. The thing I see the most is selling for 1x, 1.5x, or 2x gross annual receipts, unless it is a failing company, in which case the number is dramatically lower. The only real difference for me is that I own less shares than the other partner. Has anyone bought/sold minority shares of a WISP, and is there anything different about valuing that? I'm looking at selling back my shares and want to make sure they're getting valued correctly. I have proposed 12-months gross receipts * my percentage. They are pushing for net revenue or gross profit - which are both net of expenses or net of cost of sales. I've never seen a net number used before - my dad sold his aerospace company about 15 years ago and used 12-months gross receipts + cash on hand for his sale number. In addition to this number, there are enterprise customer contracts that have been signed but have not been fully deployed yet, and therefore are not reflected on the books - it seems like these should be added to the value as well. On top of that, I am a co-signer on a line of credit for the company, how should that be handled? Has anyone dealt with that? Thanks in advance for any input or advice you guys can provide. Nick ___ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless ___ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless
