[asterisk-biz] The Value of VoIP subscribers

[Yair Hakak]

Dean, you're right. I didn't say value against vonage subscriber per
subscriber, I said use it as a benchmark. On the one hand vonage has
significant economies of scale, brand equity, etc., on the other hand their
churn rate is ridiculous (2% a MONTH!) so you do have to be careful about
benchmarking.

-yair


On 2/19/06, Yair Hakak <yair at hakak.com> wrote:
>
> again, it's a lot more complicated than a simple return on investment
> period.
>
> Example:
> If i had $800,000, i could do one of 2 things:
> 1. buy government bonds and take home 5% a year (or whatever is the
> risk-appropriate benchmark), say $40,000 a year
> 2. but a company that generates $200,000 a year.
>
> Either way my money is tied up for 5 years. The key is what I end up with
> at the end, not the cash flow during the period. Return on investment
> (payback period) is a good method if you're comparing 2 similar investments,
> but here, see what happens:
> with option #1 i have 1 million dollars (ignoring compound interest) - my
> original 800,000 + the interest
> with option #2 i have 1 miliion dollars (my profits) + whatever the
> company is worth at the end of the period (i.e. all my profits, plus the
> principal).
>
>
> as you can see, how i value what the company is worth at the end is the
> critical variable here, it is what makes me decide whether to buy the
> company, or not (and buy govt bonds instead).
> This means when i look at the end of the period, I have to assume a
> steady-state profit from there on, which i can then do an NPV on, and
> valuate today (or use some other method to value the future profits).
>
> It's all about opportunity costs.
>
> -yair
>
> On 2/19/06, Ron Arts <ron.arts at neonova.nl> wrote:
> >
> > Yair Hakak wrote:
> > > I don't know anyone who would value using such a method. After 4 years
> > i
> > > assume the company is going to be vaporized?
> > > 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.
> > >
> >
> > Maybe my example was not clear enough. What I meant was: if I spend
> > $800000
> > on a company that generates $200000/year on profit, it takes 4 years to
> > recoup my investement before I start making money.
> >
> > Ron
> >
> > > -yair
> > >
> > > 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.
> > >
> > >
> > > On 2/19/06, *Ron Arts* <ron.arts at neonova.nl
> > > <mailto: ron.arts at neonova.nl>> wrote:
> > >
> > >     CC Asterisk wrote:
> > >      > Well basically we have a small service company with about 3200
> > >     subs. We
> > >      > are exploring the possibility of selling it to an ITSP. My main
> >
> > >     question
> > >      > was beyond the formulas - is there some kind of accepted
> > valuation in
> > >      > the VoIP industry.
> > >      > Our churn in the last 2 years has been about  0.8% a month. We
> > >     work in a
> > >      > specific niche and have been growing nicely there.
> > >      >
> > >      > Does that help?
> > >      > Mark
> > >      >
> > >
> > >     I can offer you a more traditional way of looking at it:
> > >     suppose I buy your company. I do that because I want to make
> > money.
> > >     When? Well many people say after 3-4 years. Suppose you have a
> > yearly
> > >     profit of $200000. If I want to make money after 4 years I would
> > >     not pay more then $800000 for your company.
> > >
> > >     Figures are just examples, and I know there are more things to
> > consider
> > >     like growth potential, intrinsic value etc, and this may not be
> > >     applicable
> > >     in new and fast growing industries, but try to think like a
> > >     potential buyer,
> > >     and try to find the buyer that sees the most value in your
> > company.
> > >
> > >     Basically value is in the eye of the buyer.
> > >
> > >     Ron
> > >
> > >
> > >     _______________________________________________
> > >     --Bandwidth and Colocation provided by Easynews.com<http://easynews.com/>
> > >     < http://Easynews.com <http://easynews.com/>> --
> > >
> > >     asterisk-biz mailing list
> > >     To UNSUBSCRIBE or update options visit:
> > >       http://lists.digium.com/mailman/listinfo/asterisk-biz
> > >
> > >
> > >
> > >
> > >
> > >
> > ------------------------------------------------------------------------
> > >
> > > _______________________________________________
> > > --Bandwidth and Colocation provided by Easynews.com<http://easynews.com/>--
> > >
> > > asterisk-biz mailing list
> > > To UNSUBSCRIBE or update options visit:
> > >    http://lists.digium.com/mailman/listinfo/asterisk-biz
> >
> >
> >
> > _______________________________________________
> > --Bandwidth and Colocation provided by Easynews.com<http://easynews.com/>--
> >
> > asterisk-biz mailing list
> > To UNSUBSCRIBE or update options visit:
> >   http://lists.digium.com/mailman/listinfo/asterisk-biz
> >
> >
> >
> >
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.digium.com/pipermail/asterisk-biz/attachments/20060219/3baabbf4/attachment.htm