Valuation of a telecoms business client base

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telese

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Jul 25, 2022
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  • #1
    Does anyone have knowledge of the current revenue multiplier for a telecoms business client base when its being valued? Or are the current client base multipliers calculated on GP?
     
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    japancool
    It depends on the type of client, but it's not as high as you might think. Small business clients are worth less, but corporate clients, although worth more, tend to operate on personal connections with their business or account manager. Account managers who have a good established client base are worth more than just the clients themselves!

    The problem is, with telecoms clients, there's a high amount of churn when the client base is sold. It's up to the buyer if they can retain them.

    It's been some years since I was involved in this side of telecoms, but back in the day, we were operating on x2-x3 GP, at most, and most businesses were somewhat leery of buying client bases. What type of telecoms are we talking about, broadband...
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    japancool

    japancool

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  • #2
    It depends on the type of client, but it's not as high as you might think. Small business clients are worth less, but corporate clients, although worth more, tend to operate on personal connections with their business or account manager. Account managers who have a good established client base are worth more than just the clients themselves!

    The problem is, with telecoms clients, there's a high amount of churn when the client base is sold. It's up to the buyer if they can retain them.

    It's been some years since I was involved in this side of telecoms, but back in the day, we were operating on x2-x3 GP, at most, and most businesses were somewhat leery of buying client bases. What type of telecoms are we talking about, broadband, mobile, virtual systems etc? And what type of client?
     
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    T

    telese

    Free Member
    Jul 25, 2022
    3
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  • #3
    japancool said:
    It depends on the type of client, but it's not as high as you might think. Small business clients are worth less, but corporate clients, although worth more, tend to operate on personal connections with their business or account manager. Account managers who have a good established client base are worth more than just the clients themselves!

    The problem is, with telecoms clients, there's a high amount of churn when the client base is sold. It's up to the buyer if they can retain them.

    It's been some years since I was involved in this side of telecoms, but back in the day, we were operating on x2-x3 GP, at most, and most businesses were somewhat leery of buying client bases. What type of telecoms are we talking about, broadband, mobile, virtual systems etc? And what type of client?
    Click to expand...
    The client base is mostly VOIP and internet access, contractual and the contracts allow for transfer of ownership. I'm particularly looking for up to date information as we have historic client base sales values
     
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