HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A Buyer
Comment on Public Hoster Valuations
Just a brief comment on the valuations of public hosting companies that I posted a few minutes ago. If you look back at the valuations over the last year, you'll see that while the companies generally have had good revenue growth, their valuation multiples (vs EBITDA) have seemed to expand at a faster rate.
HostingCon 2011 Discount Code
For those of you attending HostingCon 2011 feel free to use the discount code CHEVALCAPITAL2011 for a slight reduction in registration costs.
Frank
Hillary Stiff Speaking At HostingCon 2011
Hillary will be speaking at HostingCon 2011 (www.hostingcon.com) in San Diego.
Her panel, "How the Big Buyers Look At Acquisitions", is on Tuesday, August 9th at 3pm.
This is a unique panel comprised of some of the top hosters talking frankly about how they look at acquisitions. The panelists take a down to earth look at many parts of the acquisition process including how they determine value, what risk means to the purchase price, features that can add or reduce the price, and practical, real world advice for sellers and other prospective buyers. Panelists currently include Lance Crosby of SoftLayer, Joe Bardenheier of Endurance International, Ditlev Brehdahl of OnApp/UK2, Hillary Stiff of Cheval Capital and more!
WHIR Magazine - Better Bookeeping
Check out Hillary's comments in WHIR Magazine's March issue for an article on the accounting issues and hurdles that hosters face when selling their business, seeking financing or finding an investor (pages 34 - 36.) It is a good background article and if you have any questions or would like to talk more about it please give Hillary or Frank a call.
Valuation of Public Hosting Companies - February 16, 2011
Summarized below are estimates of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have significant other businesses that may also affect the valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value - "EntValue".)
Parallels Conference - February 23rd & 24th
SingleHop CEO Named to Chicago Top 40 Under 40 List
Congratulations to Zak Boca, CEO of SingleHop Inc., on being named to Crain's Chicago Business Top 40 Under 40 List. The list and interview with Zak can be found here. The writeup at the WHIR is pretty good as well.
Washington, DC WHIR Networking Event - Thursday, October 21
We will be attending the WHIR's Networking Event in Washington, DC on October 21st. If you are planning to attend, please drop us a note or look for us there.
2010 cPanel Conference
Thanks to the cPanel folks for a great conference this week in Houston. For those of you that didn't make it, here are a few of the new products that we found compelling and that you may wish to check out; www.1H.com, APSpanel.com, OnApp.com and www.Volance.com.
Hillary Stiff, Cheval Capital
Valuation of Public Hosting Companies - September 8, 2010
Summarized below is an estimate of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have significant other businesses that may also affect the valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value - "EntValue".)
Closing prices as of 9/8/2010
AnnualizedEntValueEntValue/EntValue/
CompanyRevs ($mil) ($mil) Revenues EBITDA
North America
Savvis $ 887 $ 1,888 2.1 8.6
Rackspace $ 749 $ 2,874 3.8 11.6
Navisite $ 126 $ 224 1.8 9.3
Web.Com $ 99 $ 99 1.0 6.6
Peer1 $ 100 $ 187 1.9 7.3
Group iWeb $ 29 $ 48 1.7 6.1
Europe
United Internet $ 2,364 $ 4,092 1.7 8.9
Dada $ 195 $ 197 1.0 7.8
Mamut $ 76 $ 95 1.2 5.7
Net Benefit Gp $ 67 $ 127 1.9 8.6
IOMart Gp $ 31 $ 112 3.6 16.0
Australia
Melbourne IT $ 180 $ 202 1.1 7.8
As always, please feel free to contact us if you have any comments, or questions.
Cheval Capital, Inc.
Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.
Valuation of Public Hosting Companies - July 13, 2010
Summarized below is an estimate of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have significant other businesses that may also affect the valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value - "EntValue".)
| Prices as of July 13, 2010(Midday) | ||||
| Annualized | EntValue | EntValue/ | EntValue/ | |
| Company | Revs ($mil) | ($mil) | Revenues | EBITDA |
| North America | ||||
| Savvis | $ 866 | $ 1,433 | 1.7 | 6.6 |
| Rackspace | $ 715 | $ 2,408 | 3.4 | 10.1 |
| Navisite | $ 126 | $ 211 | 1.7 | 8.8 |
| Web.Com | $ 101 | $ 64 | 0.6 | 3.9 |
| Peer1 | $ 100 | $ 174 | 1.7 | 6.8 |
| Group iWeb | $ 29 | $ 45 | 1.6 | 5.6 |
| Europe | ||||
| United Internet | $ 2,327 | $ 3,729 | 1.6 | 8.2 |
| Dada | $ 194 | $ 171 | 0.9 | 13.1 |
| Mamut | $ 79 | $ 96 | 1.2 | 6.1 |
| Net Benefit Gp | $ 65 | $ 108 | 1.7 | 7.4 |
| IOMart Gp | $ 30 | $ 82 | 2.7 | 12.1 |
| Australia | ||||
| Melbourne IT | $ 167 | $ 200 | 1.2 | 8.1 |
As always, please feel free to contact us if you have any comments, or questions.
Cheval Capital, Inc.
Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.
HostingCon 2010 Coupon
For those that have not yet registered for the upcoming HostingCon conference, use the code HostingIndustry2010 for a small discount.
Frank Stiff Speaking at HostingCon 2010
Frank is speaking this year at HostingCon 2010 on Monday, July 19th at 9am.
The panel, "Adding Value to Your Business With Financial & Operating Metrics" is made up of some of the industry's most successful hosters talking about how they use numbers in their businesses. The panel is a practical, down to earth look at how financials and operating metrics help hosters manage their operations, make decisions and grow more effectively.
Panelists include Hari Ravichandran, President of Endurance, Zak Boca, President of SingleHop, Jay Sinder, CFO of Corelink Data Centers, Pat Matthews, VP and GM of Rackspace Cloud, Doug Erwin, CEO of The Planet, and is moderated by noted industry attorney David Snead.
