.entry-title { text-align: left !important; }

Cheval Capital

Valuation of Public Hosting Companies - February 25, 2015

Summarized below are estimates of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have other businesses that may also affect their valuations. (All data was taken from publicly available financial information and please see this post for how we calculate Enterprise Value.)  If you wish to get a sense for changes to valuations over time, here is a link to some of our past valuation summaries.

* - The financial data for most of the above companies is based on their press releases and is as of 12/31/2014. We will update the valuations when the companies make their SEC filings and more of the European hosters have released results.

As always, please feel free to contact us if you have any comments, or questions.

Cheval Capital, Inc.

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Author: Hillary Stiff is Managing Director of Cheval Capital. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 270 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are

The M&A Process With David Snead

One of the most common questions we are asked is about the various steps involved in the buying or selling of a web hosting business.  Recently, Frank sat down with Internet industry attorney David Snead (dsnead.com) and talked through the process.

We hope this has been of interest and are happy to discuss any of these topics at your convenience.

Hillary Stiff & Frank Stiff

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Authors: Hillary Stiff & Frank Stiff of Cheval Capital have been investment bankers  completing M&A transactions, arranging financing and providing financial advice for a large number of companies including The Endurance International Group, SingleHop, Rackspace, Web.Com among many others. They have completed over 270 successful web hosting, ISP and related transactions and distribute a list of hosting and related companies that are for sale.

Valuation of Public Hosting Companies - November 17, 2014

Summarized below are estimates of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have other businesses that may also affect their valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value.)

 * - The financial data for most of the above companies is as of 9/30/2014. United Internet and Melbourne are as of 6/30/14. Iomart is as of 3/31/2014.

As always, please feel free to contact us if you have any comments, or questions.

Cheval Capital, Inc.

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Author: Hillary Stiff is Managing Director of Cheval Capital. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 270 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.

Valuation of HostEurope's Third Offer for Iomart

It looks like the third time was the charm as Iomart, after rejecting HostEurope's first two offers, has entered into acquisition discussions based on HostEurope's third offer of 300 pence per share. In an earlier post we looked at the valuation of HostEurope's first two offers.  The current offer of 300 pence, by our figures, puts the Enterprise Value of Iomart at approximately GBP 350mm, approximately 15x 2014 fiscal EBITDA.  (Note that Iomart's fiscal year ended March 31, 2014 which likely makes the 15x EBITDA multiple higher than if it were based on current EBITDA.)

Please feel free to contact us with any questions. 

Author: Hillary Stiff is Managing Director of Cheval Capital. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 250 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.

DISCLAIMER: This summary is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell companies or a comprehensive discussion of the risks involved in buying or selling a company. Please be sure to consult your legal and financial advisors when considering the purchase or sale of a business or completing other financial transactions. Cheval Capital assumes no responsibility or liability for any of the information contained herein.

Valuation of HostEurope Offers To Buy Iomart

Last week Iomart PLC (IOM.L) announced that it has rejected two purchase offers from Host Europe Holdings Ltd. 

The offers were at 275 pence and 285 pence or about 14x trailing EBITDA. For context, here is our most recent set of valuation estimates for other publicly traded hosters.

UK law gives HostEurope until August 21 to increase its offer or walk away.

Author: Hillary Stiff is Managing Director of Cheval Capital. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others.  She has helped complete over 250 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.

DISCLAIMER: This summary is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell companies or a comprehensive discussion of the risks involved in buying or selling a company.  Please be sure to consult your legal and financial advisors when considering the purchase or sale of a business or completing other financial transactions.  Cheval Capital assumes no responsibility or liability for any of the information contained herein.

Valuation of Public Hosting Companies - June 10, 2014

Summarized below are estimates of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have other businesses that may also affect their valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value.)

* - Melbourne IT's large cash balance may distort the Enterprise Value calculation.

** - GoDaddy's recent S1 filing does not include valuation information.

As always, please feel free to contact us if you have any comments, or questions.

Cheval Capital, Inc.

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Valuation of Public Hosting Companies - March 19, 2014

Summarized below are estimates of the relative valuations of some public companies that have significant hosting operations. Please be aware that a number of these companies have other businesses that may also affect their valuations. (All data was taken from publicly available financial statements and please see this post for how we calculate Enterprise Value.)

Note - Melbourne IT's large cash balance may distort its valuation ratios.

As always, please feel free to contact us if you have any comments, or questions.

Cheval Capital, Inc.

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Internet Infrastructure Coalition (i2C)

Cheval Capital is pleased to be a charter member of the Internet Infrastructure Coalition.  

The I2 coalition supports those who build the nuts and bolts of the Internet.  The coalition believes the continued growth of the Internet is vital for growing an environment of innovation in America and it seeks to engage in ways to foster success of the Internet and Internet infrastructure industry.

Please check out their website at http://i2coalition.com/ and lend your support!

 

Hillary Stiff & Frank Stiff

SingleHop Financing

Congratulations to the folks at SingleHop on completion of their first ever institutional financing with Battery Ventures and American Chartered Bank. Details of the transaction can be found here.Cheval Capital acted as financial advisor to SingleHop in the transactions.

,

HostingCon 2011 - How the Big Buyers Look At Acquisitions

,

This turned out to be a great panel with Hillary Stiff (Managing Director of Cheval Capital), Ditlev Bredahl (CEO of OnApp), Joe Bardenheier (SVP of Endurance), Mike Jones (CFO of Softlayer), and Sumeet Sabharwal (SVP of Navisite.) There were no slides but David Snead posted a description of the panel with some of its key thoughts on his WHIR blog.  If you aren't aware of David Snead, he is a well regarded, Washington D.C. attorney that works exclusively with companies that provide the infrastructure supporting the internet and those who create and distribute products and services electronically.  His website is here.

Hillary Stiff & Frank Stiff