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Don't Buy Subscribers
I don't think that anyone should buy an ISP or WISP in today's market -- or sell to a rollup for anything other than cash.
The wireless business is a good business, and some companies are making real money doing it. A few of the best have sold recently and taken a leadership role in a rollup. Doing that does make sense. The opportunity to be part of a large company and roll the dice on being part of a company that sells out at the peak, that's worthwhile.
But many rollups don't make it, and the biggest infrastructure project right now, ClearWire, is losing hundreds of millions of dollars every quarter.
That's the seller's point of view.
But it's not a buyer's market, either.
If you're a buyer, you're going to cross most WISPs off your list of targets (see, for example, Two WISP Rollups in Texas). That leaves a short list that's similar to the short list of the dozen or so other companies building a national or regional infrastructure.
It might look like Steve Stroh's list of broadband wireless and WiMAX providers. There are 73 companies on that list, a tiny of fraction of the several WISPs that exist nationwide.
I don't know for certain, but I can guess that those companies are receiving offers regularly. They weren't willing to sell yesterday for a reasonable price, and unless circumstances have changed, they won't accept a reasonable offer today.
If you're looking to grow, don't buy subscribers. They cost too much.
Instead, buy skills.
Take a look at your local VAR, who you probably know already. If you respect the local VAR, consider buying that company. You may work with other providers of local services, such as dish installers, or a network security team, or even a provider of outsourced e-mail services.
Some companies on this list will be out of reach.
But I think that someone has a skill set you'd like to add to your company. Maybe you don't need to acquire a corporation; maybe you could build a whole new business line by hiring one person, or a few expensive people.
Maybe you could open up a new buiness line by investing in an expensive piece of equipment.
If you're considering buying another company that's similar to yours, examine several other ways you could spend the money.
Ultimately, it's about how much money you expect to make from your purchase. Modelling the expected profit and making the decision is exactly the kind of responsibility that makes you a leader.
Just remember that leaders can ask for advice, both friendly and professional.
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