Best of the ISP-Lists

Selling Your ISP?

Members of the ISP-Investor complain about calls from people claiming to be interested in buying their ISP, but who disappear after obtaining sensitive business information. Be careful when selling your ISP.

[September 19, 2000]

On the ISP-Investor list in September, BL complained:

"We're currently looking into selling our ISP. I have been incredibly unimpressed by the flaky business practices of so-called buyers. They call up and take a great deal of information, express profound interest in our company, promise to call back in a couple of days, and are never heard from again. This is not normal in any other business; do they think they're exempt from customary business practices and courtesy?"

A number of respondents echoed BL's concerns:

[SD agreed] "A few months ago, I also made an offering on this list. A flurry of responses ensued, non-disclosure agreements (NDAs) urgently faxed and e-mailed, and from many of those urgent inquirers, not a further word. Apparently my offering was not what the ordinary buyer is seeking, but the feedback as to why would have been helpful."

[IM concurred] "I recently pursued discussions with an individual who asked for business plan and financials. Sent him an NDA and then our executive summary to gauge his level of interest and seriousness. Received no call or follow-up with comments. Sent him an email, no reply. We were fortunate not to have provided anything more substantial."

Others suggested exercising caution when sharing information:

[IC warned] "Don't send your business plan or NDA to anyone until you have interviewed them and determined their qualifications and interest level. You can usually describe your business plan in broad terms, until you can get a feel if they are indeed serious."

[SV agreed] "From this point on I'll only have general discussions until I've taken the time to verify that they're legit prior to attempting to waste my time. My suggestion is that if you're serious about selling your company, find a reputable broker who will bring real buyers to the table. You'll pay a commission of 3-4%, but it's better than wasting time with window shoppers and data gatherers."

—End