Selling our web hosting division

Discussion in 'IT & Internet' started by jim_gold, Oct 11, 2021.

  1. jim_gold

    jim_gold UKBF Enthusiast

    430 83
    Anyone here already running a web hosting / domain registration business, and who may be interested in buying a tiny non-core division?

    We’ve got 80 long-standing business customers, 30 of which we provide web hosting for (Heart Internet and Fasthosts reseller). The rest we provide domain registration (at over 100% mark-up) and some email accounts. Annual revenue around £7k pre-vat. If you have any tech questions, please message me and I’ll pass to one of my colleagues. Suit someone already in the business, as we don’t have time to educate someone who hasn’t already got web admin experience/resource.
     
    Posted: Oct 11, 2021 By: jim_gold Member since: Dec 5, 2007
    #1
  2. zigojacko

    zigojacko Verified Business ✔️

    3,749 1,212
    How much do you want?
     
    Posted: Oct 11, 2021 By: zigojacko Member since: Dec 7, 2009
    #2
  3. jim_gold

    jim_gold UKBF Enthusiast

    430 83
    As a general rule of thumb web hosting businesses go for between 1 to 1.5 times annual revenue. If you are interested in getting more detail, please DM me with your email and I'll send you a brief datasheet.
     
    Posted: Oct 11, 2021 By: jim_gold Member since: Dec 5, 2007
    #3
  4. ServWise

    ServWise Full Member

    1,221 269
    Long shot I know but I have been running servwise.com since 2006, if you don't find a buyer but want the clients to go to a business that offers a very hands on, customer focused approach then I would be happy to talk. All my customers are web dev clients or via word of mouth more or less. No spare cash for accusations I'm afraid. Good luck.
     
    Posted: Oct 11, 2021 By: ServWise Member since: Jan 22, 2008
    #4
  5. Dillon Lawrence Ltd

    Dillon Lawrence Ltd UKBF Contributor

    119 17
    What sort of hosting is it that you provide? Basic cPanel shared hosting for low resource intensive sites or something more specialist?
     
    Posted: Oct 11, 2021 By: Dillon Lawrence Ltd Member since: Oct 12, 2019
    #5
  6. jim_gold

    jim_gold UKBF Enthusiast

    430 83
    Basic shared hosting
     
    Posted: Oct 11, 2021 By: jim_gold Member since: Dec 5, 2007
    #6
  7. japancool

    japancool UKBF Legend

    5,158 1,177
    Gross profit?

    And any marketing property with it (i.e. websites etc.)?
     
    Posted: Oct 11, 2021 By: japancool Member since: Jul 11, 2013
    #7
  8. Dillon Lawrence Ltd

    Dillon Lawrence Ltd UKBF Contributor

    119 17
    What sort of contracts (if any) are the clients bound by?

    I think it might be a hard sell with the small hosting customer base you have. Particularly if the clients are just on monthly rolling plans.

    My reasoning for that is you’re a very small provider who more than likely has a direct relationship with the clients. They use you as you’re the person that’s at the end of the phone and someone they trust. When an email drops in their inbox stating that the person they trusted has sold up and they are now being transferred elsewhere to an unknown company many won’t be happy about it and will start to jump ship elsewhere. Not all sure but I’d say a decent percentage will.

    Basic shared cPanel hosting is basically a commodity and migrations don’t really take any time at all with many hosts offering them free. If you had a larger customer base it would be less of an issue.
     
    Posted: Oct 11, 2021 By: Dillon Lawrence Ltd Member since: Oct 12, 2019
    #8
  9. jim_gold

    jim_gold UKBF Enthusiast

    430 83
    I cannot give a gross profit figure. It's not been analysed out with associated costs distinguished. We do other stuff. Anyone already in the business will see the prices we charge for the hosting and domains and assess the value accordingly. They may choose to keep the existing reseller hosting or if that's too expensive move accounts onto their existing servers where there is no additional cost involved. Domains cost us c. £5 and we resell for over £20.
    The website, brand and phone number is included.
     
    Posted: Oct 13, 2021 By: jim_gold Member since: Dec 5, 2007
    #9
  10. jim_gold

    jim_gold UKBF Enthusiast

    430 83
    It will sell. We don't have much of a relationship with clients at all and do not have the time to talk to any of them over the phone. They submit a support ticket if they have an issue.
     
    Posted: Oct 13, 2021 By: jim_gold Member since: Dec 5, 2007
    #10
  11. HostXNow

    HostXNow Full Member

    482 38
    Same here, but I'll offer £500 :p
     
    Posted: Oct 19, 2021 at 11:34 PM By: HostXNow Member since: Mar 7, 2011
    #11
  12. GURUCLOUD

    GURUCLOUD Full Member

    67 3
    Hi @jim_gold, are you're still looking for a buyer?
     
    Posted: Oct 20, 2021 at 11:53 AM By: GURUCLOUD Member since: Jun 15, 2018
    #12