More on buying and selling internet business.
Internet business is basically large used system sales. The on going business operations can be bought cheap, but the value is in the operation of how many hits per day, that the server farm and software can handle. You buy them for 10 cents on the dollar and sell them as parts for 60 cents on the dollar. If the personnel are intact, the continuing operation is worth 300-500 percent of the cost of system components and installation including real estate improvement cost. Equipment age is not a factor, but hits per day can be put into hits per dollar cost. Canadian operation also has MSEL SAP internet operation, which has to be evaluated and separated from the distribution business.
So, Value America is a good buy and money can be made if only the burn rate can be minimized or cut short by turning around and sell as soon as possible. Any operation, once divorced(with settlement, is that a creative accounting?) from MSEL Los Angeles overhead, will all make money right away. |
