Web Hosting Company Liquidity

[mandy]

“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 and 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, that has offices, a data center, and offers-related services such as access, marketing services and more.
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full article: http://www.webhostingtalk.com/news/web-h...liquidity/