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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I’ve stayed out of this conversation until now, there
is no way a company can be valued at 4.0 profit for such a fluid industry.
Likewise Yair, you can value subs against subs for Vonage, there is a whole
different dynamic associated with scale.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Cheers,<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Dean<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
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font-family:Arial'><o:p> </o:p></span></font></p>
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font-family:Arial'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span lang=EN-US
style='font-size:10.0pt;font-family:Tahoma;font-weight:bold'>From:</span></font></b><font
size=2 face=Tahoma><span lang=EN-US style='font-size:10.0pt;font-family:Tahoma'>
asterisk-biz-bounces@lists.digium.com
[mailto:asterisk-biz-bounces@lists.digium.com] <b><span style='font-weight:
bold'>On Behalf Of </span></b>Yair Hakak<br>
<b><span style='font-weight:bold'>Sent:</span></b> Sunday, 19 February 2006
9:06 AM<br>
<b><span style='font-weight:bold'>To:</span></b> Commercial and
Business-Oriented Asterisk Discussion<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [asterisk-biz] The
Value of VoIP subscribers</span></font><span lang=EN-US><o:p></o:p></span></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>I don't know anyone who would value using such a method. After 4 years
i assume the company is going to be vaporized?<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>This may be how you value something with a short asset life (a car, for
example) but it's far to primitive a method to value a going concern with.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>-yair<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>p.s. no offense meant, contstructive criticism only. Your point about
valuing from the point of view of the buyer, however, is very well taken.<br>
<br>
<o:p></o:p></span></font></p>
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<p class=MsoNormal><span class=gmailquote><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>On 2/19/06, <b><span style='font-weight:bold'>Ron Arts</span></b>
<<a href="mailto:ron.arts@neonova.nl">ron.arts@neonova.nl</a>> wrote:</span></font></span>
<o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>CC Asterisk wrote:<br>
> Well basically we have a small service company with about 3200 subs. We<br>
> are exploring the possibility of selling it to an ITSP. My main question <br>
> was beyond the formulas - is there some kind of accepted valuation in<br>
> the VoIP industry.<br>
> Our churn in the last 2 years has been about 0.8% a month. We
work in a<br>
> specific niche and have been growing nicely there. <br>
><br>
> Does that help?<br>
> Mark<br>
><br>
<br>
I can offer you a more traditional way of looking at it:<br>
suppose I buy your company. I do that because I want to make money.<br>
When? Well many people say after 3-4 years. Suppose you have a yearly <br>
profit of $200000. If I want to make money after 4 years I would<br>
not pay more then $800000 for your company.<br>
<br>
Figures are just examples, and I know there are more things to consider<br>
like growth potential, intrinsic value etc, and this may not be applicable <br>
in new and fast growing industries, but try to think like a potential buyer,<br>
and try to find the buyer that sees the most value in your company.<br>
<br>
Basically value is in the eye of the buyer.<br>
<br>
Ron<br>
<br>
<br>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
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