Every business attorney and accountant has told me the same thing, cash only.
On Wed, Mar 19, 2014 at 4:09 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<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 >> <http://www.franczek.com/20thAnniversary/>* >> >> 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 <e...@e1w.com> >> >> *To:* 'WISPA General List' <wireless@wispa.org> >> >> *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<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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