Having been a part of a deal gone bad I recommend cash up front. Once you hand over the keys it¹s pretty hard to get it back. If you have to go to Litigation you are going to be spending money out of pocket for attorneys. I agree with Cameron. Cash at closing. If you don¹t do 100% cash at closing you should be prepared to not see another dime if you do anything else.
I know ISPs who sold, got some money at closing, and then ended up spending twice that money on attorney fees and still ended up with nothing. Selling a business should be like selling a high dollar item. If I was going to sell a car I sure wouldn¹t sell it on contract. Too many things can go wrong. If I had 100% ownership in an ISP today and wanted to sell I would take a hit on the overall price. If then user couldn¹t afford it and I really needed to sell for whatever reason I would simply take a lower price. Less stress that way. Justin -- Justin Wilson <j...@mtin.net> MTCNA CCNA MTCRE MTCWE - COMTRAIN Aol & Yahoo IM: j2sw http://www.mtin.net/blog xISP News http://www.zigwireless.com High Speed Internet Options http://www.thebrotherswisp.com The Brothers Wisp From: "Hass, Douglas A." <d...@franczek.com> Reply-To: WISPA General List <wireless@wispa.org> Date: Wednesday, March 19, 2014 at 3:08 PM To: WISPA General List <wireless@wispa.org> Subject: Re: [WISPA] Selling ISP > Cameron > > There¹s lots of ways to structure the deal so that you¹re protected, even if > the buyer is a complete imbecile and even if the buyer doesn¹t have cash up > front. If you want to sell or if you want to buy, don¹t 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 didn¹t 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 you¹re willing to accept). > > To categorically reject buyers who don¹t 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 isn¹t always your best one. > > To Randy¹s 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 don¹t 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 <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 <http://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 <mailto:e...@e1w.com> >>> >>> To:'WISPA General List' <mailto: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 <tel:662-287-1722> >>> e...@e1w.com >>> www.e1w.com <http://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 <http://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 <http://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 <tel:435-674-0165%20x%202010> > --- > 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
