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The logical exit strategy for a local ISP is to be combined with a larger dial-up ISP, perhaps a National ISP. It is hard to predict who this will be three years from now. But, using current multiples being offered for ISPs several predictions can be made.
The initial investment of $91,000 represents 24% of the stock of this venture. The final valuation of the company will be between $2 and $4 Million. This represents a 6 to 10X return on investment over 3 years.
Reprinted with permission by - Richard Stiennon May 16, 1996
Threat Chaos Blog
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