Selling your hosting company?
Do you run a web hosting or development company and looking to exit the market? Do you want your clients to move to a reputable hosting company with minimum hassle or down time? Then speak to us!
We have been operating for nearly 10 years, during that time we have purchased numerous hosting companies and design agencies, moving thousands of their clients with minimum hassle or down time. It is important to us that the clients are a good fit for our services/packages to ensure continuity of service and honouring your own commitments.
What types of clients do we want?
While we expect this to change in future, our current client requirements are:
- UK/US Based, cPanel/WHM Shared Hosting Clients
- UK Based, cPanel/WHM Reseller Hosting Clients
- US, UK and AU, DOMAIN ONLY Clients
- For .UK domains we do prefer Nominet Registrars
Our capacity ranges from 1 client to 100,000 clients, we are happy to accept new clients however big or small.
What would you offer for my company?
Based upon the current market rates for hosting customer, we offer up to 10 months of your turnover. So for illustration if your turnover was £12,000 a year we would pay you £10,000.
Occasionally other factors will reduce this offer such as:
- How long the clients have been with you?
- When renewal is due? We will usually honour any hosting you have already sold
- Do you hold their primary domains?
- Where HOSTING/DOMAIN are currently held?
- What are your profit margins?
- What percentage do we expect to lose (through transferring out or non-renewal)?
One type of client we won't touch, is UNLIMITED EVERYTHING clients paying £1 a year. While we know a lot of companies do it and they play on the probability of users not using their allocated space, these are not for us.
What is the process if I'm ready to sell?
Firstly, we sign a Non-Disclosure Agreement (NDA) this is important as we will be asking for a very in-depth audit of your records/servers and client data to ascertain the best offer we would be willing to make.
Once we have reviewed your records and agreed a price, we will draw up a contract for the transfer of ownership. While some companies are interested in buying the "COMPANY" we are only interested in your "ASSETS" and any liabilities shall remain with the "COMPANY".
We will then draw up a communication which will be sent to your clients, introducing ourselves and explaining to them the next process:
- We will copy over your billing information and generate new accounts in our billing system for them.
- We will copy over all their DOMAIN, HOSTING and SSL records to our billing system, mirroring the costs and renewal dates. Honouring any pre-paid hosting arrangements.
- DOMAINS, will then be transferred into our account and linked to our billing system allowing clients to manage their domains and renewals.
- HOSTING, will be backed up, transferred and restored in batches updating named servers on completion and linked to our billing system allowing clients to manage their hosting package and renewals.
We (BeDot Media Group) will transfer 50% of the purchase price when we begin transferring clients across and transfer the final balance on completion. In some cases, you may not hold the client's domain and are unable to contact them to progress the transfer in a timely manner. In these cases, the client will be setup and their backup transferred and restored. The client will then be given 30 days to update their own named servers, this will require your own servers to remain active during that 30-day period.
Okay I'm ready to sell!
Great! Well the next step is easy, drop an email to firstname.lastname@example.org outlining in as much detail as possible your offering.
We aim to come back to you in a maximum of 24 hours.