Cameron, On the flip-side, finding a traditional bank to finance the purchase of a WISP may be fraught with its own set of challenges, which don’t necessarily have anything to do with the quality of the business, its operations, *or* the knowledge of the purchaser.
If anyone can refer others to a business-oriented bank which they know has successfully financed WISP purchases in the past, that would be a great asset to the community. I suspect smaller, more-focused lending institutions would be more amenable to this sort of thing. Thoughts? On Mar 19, 2014, at 1:09 PM, Cameron Crum <cc...@wispmon.com> wrote: > Doug, > > The problem I see with that is that you will most likely have to take the > other party to court to enforce the terms of your agreement if one of the > terms is breached. It could take months or even years to get a final > judgement at which time there may be nothing left. This may be good advice > for a non-wisp business, but in the fast paced world of broadband, customers > will likely flee before a resolution is reached. If the buyer is left > insolvent, you are left with nothing, and may be on the hook for all your > own legal fees. I talked to three different business attorneys and they all > told me to run from any seller financed deal regardless of who the buyer was. > Again, if the buyer can't get financing on their own, are they a good buyer? > > > On Wed, Mar 19, 2014 at 2:55 PM, Hass, Douglas A. <d...@franczek.com> wrote: > Of course! You have to have a willing seller and buyer to start. My point > is that setting preconditions before you get started (as a buyer or as a > seller) unnecessarily limits what you ultimately would be able to do. Don’t > take options off the table until you have a specific deal to consider. Then > is the time to say “I’m only taking cash” or “I’ll finance, but only with X, > Y, and Z terms that protect me.” > > > > Doug > > > > > > From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On > Behalf Of CBB - Jay Fuller > Sent: Wednesday, March 19, 2014 2:53 PM > > > To: WISPA General List > Subject: Re: [WISPA] Selling ISP > > > > > Depends on how bad you want to sell ...we don't always want to buy. > > Sent from my Verizon Wireless 4G LTE Smartphone > > ----- Reply message ----- > From: "Hass, Douglas A." <d...@franczek.com> > To: "WISPA General List" <wireless@wispa.org> > Subject: [WISPA] Selling ISP > Date: Wed, Mar 19, 2014 2:08 PM > > > > Cameron— > > > > There’s lots of ways to structure the deal so that you’re protected, even if > the buyer is a complete imbecile and even if the buyer doesn’t have cash up > front. If you want to sell or if you want to buy, don’t let the all-cash > restriction prevent you from making a deal. If you end up in court chasing > payments from the buyer, then you likely didn’t draft your agreement > carefully enough given your tolerance for risk (of course, your due diligence > should be telling you whether the buyer is an imbecile, and that information > should inform what kind of deal you’re willing to accept). > > > > To categorically reject buyers who don’t have 100% cash to hand you at > closing might mean leaving money on the table or more flexible terms from > someone who can put together a more attractive end package. In that sense, > it works like selling real estate. The all-cash offer isn’t always your best > one. > > > > To Randy’s point--Jab has undergone a major shakeup at the top. Many of the > senior executive staff have departed in the last few months. That might > account for some of the quietness. I don’t have any inside information, just > what I learned trying to round up potential panelists and speakers for > WISPAmerica. > > > > Doug > > > > From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On > Behalf Of Cameron Crum > Sent: Wednesday, March 19, 2014 1:45 PM > To: WISPA General List > Subject: Re: [WISPA] Selling ISP > > > > The seller is not a bank. Why should they take on all the risk? What happens > if the buyer is a complete imbecile and runs the network into the ground and > defaults on payments? Now you are in court suing for money you will most > likely never see, and even if you retake possession of the network, it may be > in shambles or most of your customers have left. We walked away from a couple > of buyers who would not pony up the cash. I'd say as one who sold a wisp, if > the buyer can't afford it, or can't arrange their own financing, you don't > want to sell. > > > > On Wed, Mar 19, 2014 at 1:39 PM, Mike Hammett <wispawirel...@ics-il.net> > wrote: > > There's many more buyers out there. > > > > > > ----- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > > From: "Randy Cosby" <dco...@infowest.com> > > > To: "WISPA General List" <wireless@wispa.org> > > Sent: Wednesday, March 19, 2014 11:00:34 AM > > > Subject: Re: [WISPA] Selling ISP > > Is anyone actually buying right now? I haven't heard much about the big > buyer (Jab) lately. > > On 3/19/2014 9:49 AM, CBB - Jay Fuller wrote: > > > > The going rate, we've seen (and has been discussed here many times), is about > 1.5x annual revenue > > > Douglas A. Hass > Associate > 312.786.6502 > d...@franczek.com > > Franczek Radelet P.C. > Celebrating 20 Years | 1994-2014 > > 300 South Wacker Drive > Suite 3400 > Chicago, IL 60606 > 312.986.0300 - Main > 312.986.9192 - Fax > www.franczek.com > > Franczek Radelet is committed to sustainability - please consider the > environment before printing this email > > Circular 230 Disclosure: Under requirements imposed by the Internal Revenue > Service, we inform you that, unless specifically stated otherwise, any > federal tax advice contained in this communication (including any > attachments) is not intended or written to be used, and cannot be used, for > the purposes of (i) avoiding penalties under the Internal Revenue Code or > (ii) promoting, marketing or recommending to another party any transaction or > tax-related matter herein. > > For more information about Franczek Radelet P.C., please visit franczek.com. > The information contained in this e-mail message or any attachment may be > confidential and/or privileged, and is intended only for the use of the named > recipient. If you are not the named recipient of this message, you are hereby > notified that any dissemination, distribution, or copying of this message or > any attachment thereto, is strictly prohibited. If you have received this > message in error, please contact the sender and delete all copies. > > ----- Original Message ----- > > From: Eagle One Wireless > > To: 'WISPA General List' > > Sent: Wednesday, March 19, 2014 10:33 AM > > Subject: Re: [WISPA] Selling ISP > > > > We priced ours at 2.5x gross revenue. We had about 10 companies contact us. > I would say 5 were serious but they wanted us to finance it so we decided > not to sell. > > Thanks, > > Kevin Melson > Eagle One Wireless > 1505 Hwy 72 E > Corinth, MS 38834 > 662-287-1722 > e...@e1w.com > www.e1w.com > > > > > -----Original Message----- > From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On > Behalf Of Ryan Morgan > Sent: Wednesday, March 19, 2014 10:30 AM > To: wireless@wispa.org > Subject: [WISPA] Selling ISP > > What is the current rate for selling your ISP! I would like to sell, for > health reasons. > Thanks for your help! > Jean > _______________________________________________ > Wireless mailing list > Wireless@wispa.org > http://lists.wispa.org/mailman/listinfo/wireless > > > ----- > No virus found in this message. > Checked by AVG - www.avg.com > Version: 2014.0.4336 / Virus Database: 3722/7216 - Release Date: 03/19/14 > > ----- > No virus found in this message. > Checked by AVG - www.avg.com > Version: 2014.0.4335 / Virus Database: 3722/7208 - Release Date: 03/17/14 > > _______________________________________________ > 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 > > > -- > Randy Cosby > InfoWest, Inc > 435-674-0165 x 2010 > --- > This e-mail message contains information from InfoWest, Inc > and is for the sole use of the intended recipient(s) and may > contain privileged, proprietary or confidential information. > > Unauthorized use, distribution, review or disclosure is > prohibited. If you are not the intended recipient, please > contact rco...@infowest.com by reply email and destroy > the original message, all attachments and copies. > > _______________________________________________ > 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 > > > > > _______________________________________________ > 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
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