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Deciding to sell is a big decision, but we believe that as the gaining company we can make that decision a little easier. That’s because to us, it’s not just a question of numbers - taking over an active client base is about finding the right fit. We want to provide an excellent service for your clients, not just acquire as many clients as possible. Quality trumps quantity.
Our technical ability and ethos give you the peace of mind and confidence that what you've worked so hard to create is going to a good home.
To date we have been involved in 7 acquisitions. Each and every time we work closely with the seller to ensure a smooth client transition, minimising hassle for everyone involved.
Entrusting us with your client base means:
We’ll consider purchasing the client base of any UK based shared hosting company. However, we don’t purchase physical assets as we’ll migrate all clients to our ex-MOD Bunker datacentre outside London, and place them on our own equipment. We are experts at migrating sites, and we guarantee a smooth, painless migration with minimal disruption of service.
Your company must meet all of the following:
You can increase the valuation of your company if it matches any of the following:
We prefer companies that have the following:
We're able to acquire companies up to £2,000,000.
We’ll offer 6-12 months of revenue generated from shared, business and reseller hosting accounts. We don't count domain revenue as we charge just above cost. We're also open to providing a bonus for hitting performance and retention targets on the anniversary. We've found this is a great way to ensure a smooth transition, which is a win for seller, buyer and the clients.
The important thing here is that we're not just interested in the amount of money that your clients make you, or could make us - we want to make sure we’re a good fit for your clients. We’re looking to take on board happy clients who respect quality and keep them happy, whilst protecting your legacy. If we're the right fit, we can build lasting relationships. Clients from previous acquisitions stay with us for years. Some have been with us a decade!
See how we successfully acquired these great companies
[ Acquired: August 2005 ]
50% - after a decade!
[ Acquired: October 2011 ]
80% - after nearly 3 years
[ Acquired: December 2011 ]
80% after 2.5 years; churn of less than 2% monthly
[ Acquired: June 2014 ]
80%+ after the 1st year
[ Acquired: December 2015 ]
[ Acquired: January 2017 ]
85.6%
~ 70% after 18 months
[ Acquired: May 2018 ]
82% after the 1st year
Take the total of your annual shared, business and reseller hosting revenue then calculate your average monthly revenue by dividing by 12. We'll pay between 6 and 12 months of revenue, depending on the other factors listed above. You can also earn extra months revenue for hitting the bounties listed above.
If you think we're the right fit for each other, and if it meets all of the mandatory requirements then we’d love to hear from you.
We'll work with you to notify your clients about the upcoming change of ownership and provide a timeline. This information will include where our support resources are located as well as our contact email and phone number. In a vast majority of cases we will be able to migrate clients over without downtime, out of peak hours.
If you'd like to get a better idea of how we handle migrations, have a look at the email PurpleCloud clients received when we acquired the company. Feedback from every acquisiton we've ever done has been very positive because of the work we do beforehand.
I hope that you'll decide to talk to us.
Kind regards,
Simon Blackler - Founding Partner
