Predictability of Revenue = Less Risk and Higher Business Value
Recurring revenue is one of the most important determinants of value. Revenue produced through management fees, trails, or renewals is ongoing and reasonably predictable while transactional revenue is more difficult to predict. It is important to understand that the predictability of recurring revenue presents less risk to future earnings and has more impact as a value driver.
In this excerpt from our 2019 Trends in Transactions and Valuation Study, our valuation experts explore:
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