Idea Transcript
H OM E
EXI T ST R AT EGY
SELLI N G PR OC ESS
ABOU T U S
C ON T AC T
BU YOU T C ALC U LAT OR
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What to expect during the selling process? When you plan to sell your hosting accounts, there is a process that you can expect. Every situation is different. Our past buyouts ranged from a simple telephone conversation with a handshake to a formal process with money in escrow. A lot of times, the level of formality depends on the level of trust between the two parties and the dollar amount involved. Although we will not publicly disclose all of the details of our due diligence, for a typical deal, our experiences tell us you can expect the following process:
1. Initial Consultation 2. Sign NDA (Non-Disclosure Agreement) 3. In-Depth Consultationn 4. Term Sheet 5. Initial Deposit in Escrow 6. Initial Migration Period 7. Evaluation 8. Final Migration Period 9. Final Payment / Period Payments
Initial Consultation We set a convenient time to talk, usually over the telephone about what both sides want and how we wish to proceed. We qualify potential candidates during this time. Specifically, we are looking to see if the hosting accounts are legitimate, current and are a good fit for our organization. For example, if you are hosting one illegal website, with a dead-beat client, on a server located in Asia, there likely isn't a good fit and we would politely decline. Similarly, we would give you an idea about how our company works, what we stand for and provide any other public information you may need. Sign NDA (Non-Disclosure Agreement) After the initial fact-finding process, if we are comfortable with each other, a more formal NDA is required so that we can both disclose additional information about ourselves. In-Depth Consultation After the NDA, we can provide further details that would help us in reaching an agreement on how this buyout would work. During the consultation, we would discuss: Technical requirements Migration details Client and server handoffs Due-dates and milestones Contractual obligations (ToS, SLA, server leases etc) and of course, the buyout amount and future commissions if applicable Term Sheet Once all of the details are discussed, a preliminary term sheet for a memo of understanding will be complete. When that is mutually agreed upon, we will both sign. Initial Deposit in Escrow If applicable, an initial deposit will be placed in escrow. Initial Migration Period We start by transferring a small number of accounts to see if everything flows as expected. This includes technical and administrative migration. Evaluation Once we are both comfortable with the initial test accounts, we will continue with the final migration. Final Migration Period We migrate the remainder of the accounts. Final Payment / Period Payments Payments are released or issued and the next phase of your life, without hosting, begins!
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