Web Hosting Aquisition Through Enom

 

In an effort to meet the growing needs of our resellers, Enom is positioned to help web hosting providers and resellers interested in selling their business. We are positioned to acquire web hosts and hosting resellers of various sizes and have the expertise to handle small to large scale client migrations to ensure a smooth transition.

 

What we look for

We are currently open to acquiring web hosting companies that match the following criteria:

  • Hosting using cPanel
  • WHMCS billing system preferred
  • Service consists mainly of shared hosting
  • The majority of your users are billed monthly

If you have been looking for an exit strategy from the web hosting industry, we welcome the opportunity to speak with you.

 

Your Customers Are in Good Hands

Enom is a division of Tucows, a leader in Internet services over the past 20 years. We take pride in providing exceptional customer service to our customers. We have successfully completed migrations for small firms with several hundred clients to larger domain registrars and hosting companies with tens of thousands of customers. We have the experience and track record to make sure your clients are in safe hands.

When it comes to facilitating a seamless transition for your clients, we understand that it’s as much our reputation on the line as it is yours. To ensure the best experience, we have carefully crafted a migration process that protects your clients from downtime, lost emails, domain name registration expirations, and gaps in billing, in an effort to provide the smoothest transition for your clients.

We take time to carefully evaluate each customer’s account, perform backups, store email settings and inform each client every step of the way. We pride ourselves in making the migration process easy and worry-free for your customers and offer 24/7/365 live North American and Canadian customer support.

Take the next step by filling out this short questionnaire, and we will be in contact with you to discuss next steps.

Frequently Asked Questions

How Do You Estimate the Value of a Hosting Company?

There are several factors that go into placing a valuation on a hosting company. The top three considerations are: synergies between the two businesses, potential for growth opportunities, goodwill and reputation of the current company.

    • Synergies: Commonalities between the two companies in terms of services provided, pricing, billing system and methods, control panel used, platform system, types of accounts and the physical location of the business are all factors that contribute to a smooth transition of customers between both companies and will aid in increasing the valuation of your company.
    • Potential for Growth Opportunities: The goal of any acquiring company is to provide a good solution for its customers and a place where those customers can continue to grow into other solutions and services. For example, a hosting company that has SMB customers may be more desirable than a hosting company with a focus on customers with personal blogs. The former may be more apt to grow into needing security products, email solutions, and other services geared towards the SMB market. Product penetration rates, churn rates, and level of customer interaction with the current company help in defining the quality of the customers being acquired and can result in increasing a company’s valuation.
    • Goodwill and Reputation of Current Company: The length of time that your company has been in operation and the goodwill and reputation it has developed over the years is a factor that can positively impact the valuation you receive for your company. Factors such as hosting up-time, customer reviews of your business, accreditations or awards your company has received for customer service or services offered and brand recognition all play a factor in the valuation process.

How Can I Get My Hosting Company Ready For Acquisition?

If you have been considering selling your company, it is recommended that you take time to get your company’s financial statements and accounting records in order. Ideally, you want to be able to provide three years of business tax returns, current year income statement, company balance sheet and cash flow statements. You also want to be able to provide details about your customer base such as a breakdown of customers by type, revenue generated, projected customer lifetime value, and any other details you may have about your customer base that provide insight into your business. The acquiring company will also want to know about any vendor contracts you have in place and the terms and transferability surrounding those contracts. If employees will be part of the acquisition, the acquiring company will be interested in learning about the number of employees on staff, salaries and job descriptions of any employees that are anticipated in being part of the acquisition. You will also want to assure that your legal information is in order including any legal records, company formation documents, stock plan agreements, and ownership divisions. If any pending litigations are underway, you will want to keep the acquiring company abreast.

If your plan is focused on selling your customer base and retaining your other company assets, the process for getting your company ready for a customer acquisition consists mainly of providing the acquiring company with details surrounding your customer base. In this scenario, you will want to provide details that offer insight into your customer base so that the acquiring company can properly place a value on the customer base you are looking to sell. Including data such as customer type, revenue generated by customer, customer purchase history and projected lifetime value (LTV) of the customer base are all important measurements for getting you the best price for your customer base.