Why buyers pay more for repeat income
A business that knows where next year's sales come from carries less risk. Less risk usually means a higher multiple.
What counts as recurring
Service contracts, maintenance agreements, subscriptions and long standing customers who reorder on a schedule. One off projects count less, even if they happen often.
Customer concentration
If one customer is a large share of your sales, buyers will worry about losing them. Spreading revenue across more customers is one of the most valuable things you can do before a sale.
Put it in writing
Verbal arrangements are hard to value. Written contracts, renewal dates and a simple customer list showing years of trading make your income easier to trust.
Put it into practice
General guidance only, not legal, tax or financial advice.
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