Buying out domains+hosting business. How to value?

[minipro]

Hello,

We are about to buy out a small domains+hosting provider. But we are not sure on how to value the deal and what would be the right price.

Can anyone point me to some article or give some tips?

Thanks in advance

[adsense_editor]

I think the most important fact is the number of users it has at present and the loyalty of the users.

[minipro]

It is a one man company that we are buying out. The problem is with valuation.

We are only looking at domain+hosting+other recurring income. He wants to include whole of last year's income as valuation which also includes one time income like web-designing, WP theme customisation, etc. We are no willing to do that, mainly b'coz those jobs have not come due to company reputation but due to personal contacts.

[tke71709]

We are only looking at domain+hosting+other recurring income. He wants to include whole of last year's income as valuation which also includes one time income like web-designing, WP theme customisation, etc. We are no willing to do that, mainly b'coz those jobs have not come due to company reputation but due to personal contacts.

You'll need to remove those items from the equation then (as you want to).

Tell him right out that you're buying his hosting clients and nothing else and that's all you're willing to pay for.

I think you're on the right track in terms of valuation, the hard part seems to be convincing him of the same.