Being all things to all people sounds good, but in most cases it reduces the liquidity of a business. Business liquidity encompasses the number of prospective buyers, the business valuation, and the amount of time required to market the then close the deal.
The most liquid scenario is a co-located web hosting client base, with no data center, offices, or employees, and only one owner/decision maker. This type of business can be under contract to be sold within 48 hours. (Post Letter of Intent due diligence, contract preparation, integration plans etc. all take a bit of time.)
The least liquid scenario is a web hosting company, which offers design services, has offices, a data center, and offers related services such as access, marketing services etc.
Valuation Difference:
Something I have seen many times is the owner/decision maker on the sell side has heard web hosting company valuation formulas and wants to apply that formula to his company. Inevitably the owner is disappointed when the offer comes up short in their mind, and passes on what actually is a fair valuation.
Design Services:
The decision to staff up and start...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
