Selling your hosting company is a huge move, but at Pivotal, it’s our job to make the decision as easy as possible.
We want to ensure you feel secure in your decision, because we understand that it’s not about money and numbers. It’s about making sure you sell to a company that’s going to care for your clients after the sale. We’re not interested in acquiring numbers – we know it’s all about the people.
Pivotal Hosting Acquisitions
We’ve designed our acquisitions process to be as straightforward and stress-free as possible. It’s our job to take the hosting company you’ve worked so hard for, and improve and care for it the way that only we can. Our beliefs and technical ability can give you the confidence that you’ve made the right decision, every time.
We believe in quality over quantity. This means we’d rather acquire the company that you’ve worked hard to build than take on as many hosting companies as possible. At Pivotal, we make sure that client transitions are as smooth and fuss-free as possible each time we make a new acquisition. Being able to trust us with your client base is as important to us as is it to you. Selling your hosting company to us means:
- Outstanding customer support both for you as you transition, and for your clients thereafter
- Fair financial remuneration for the hard work you’ve put into building your company
- A team of skilled, knowledgeable and enthusiastic people committed to making your journey as hassle-free as possible and supporting your clients
It’s our philosophy to give fair consideration to the client base of any UK-based hosting company. But we prefer to migrate all clients to our own Norwich data centres and our own equipment rather than purchasing physical assets.
Don’t worry, we have the expertise to ensure smooth sailing as we migrate your clients’ sites with little to no disruption.
To be eligible for consideration, your hosting company must meet the following criteria:
- You must be based in the UK
- Your client base must be 95% or more UK residents
- Your company must be well established, preferably for at least 2+ years
- You must be able to show a stable, yearly turnover
Though not essential, at Pivotal we prefer to acquire hosting companies that also have the following:
- 500 or more cPanel hosting accounts
- An up to date billing system
- Rolling monthly supplier contracts, or contracts that are due for renewal
- Most of your domains use your nameservers
- Nominet TAG holder for .uk domains
- eNom or Netistrar for .net, .org and .com domains
Increase Your Valuation
In addition to meeting our criteria, you can potentially increase the value of your hosting company if:
- The majority of your clients use a monthly payment method (+1 month of annual revenue)
- RIPE IP address space (+1 month of annual revenue)
We understand that our criteria and requirements can seem like a lot, and not every hosting company can meet them. Even so, we welcome all potential acquisitions to get in touch. We can provide advice and information where needed, and are more than happy to discuss your needs.
Pivotal Acquisitions can acquire hosting companies that generate up to £500,000 in annual revenue. If your hosting company generates more revenue than that, please get in touch – we might still be able to help with a more bespoke plan!
- We offer 6-12 months of revenue generated from shared accounts, business accounts and reseller hosting accounts
- We don’t count domain revenue as we charge a little above cost
In addition, we offer potential bonuses for hitting performance and retention targets, as this is a great way to improve transitions. Of course, this benefits you, us, and your client base.
It’s as important to us as it is to you to protect the legacy you leave behind after your acquisition. And we know this is the best way to build relationships. That’s why this will never be just about how much money your clients can make for us.
To us, nothing is more important than making sure we’re a good fit, both for you and for your clients. We understand that happy clients are the best clients, which is why we strive to provide consistent service of the best quality.
We understand that selling your hosting company can be a daunting time. That’s why we try to be as clear and open about our process as possible.
If all goes to plan and our requirements are met, the process should look something like this:
- NDA – we’ll send you a digital non-disclosure agreement to sign so that we’re all comfortable talking confidently and confidentially about the specifics of the sale.
- Valuation – we’ll have a look at your company, learn about you, your clients and your business principles to see if we’re a good fit. If we are, then we’ll work on negotiating a price that’s suitable for both you and Pivotal.
- Contract Exchange – once we’ve reached an agreement on price, we’ll agree to a date of sale and a schedule of events. This way we can prepare the required resources to make sure that the transition goes smoothly, whether this is minimal or includes additional hardware and staff for the handover.
Once the acquisition terms are agreed, we’ll get the ball rolling. We’ll work alongside you to make sure your clients are notified about the upcoming change in ownership, and provide a timeline for this. We’ll also provide our contact information and links to support resources for your clients.
In most scenarios, we’re able to migrate clients outside of peak hours and with little to no downtime.
If you’d like more information on how we handle migrations at Pivotal, please get in touch with us, and our knowledgeable staff will be able to discuss your potential acquisition in further details.