Why recurring revenue matters in business valuations Recurring revenue models are highly prized by both business owners and potential buyers. Whether it’s subscription services, maintenance contracts, or long-term supply agreements, predictable income streams can significantly enhance the value of a business. But how exactly do acquirers and valuers assess the strength and sustainability of these models? Key factors in valuing recurring revenue 1. Contract length and security

When valuing a business, financial performance, growth potential, and market conditions are often front of mind. However, one factor that is sometimes overlooked – but can significantly influence value – is employee retention. For many SMEs, the strength and stability of the workforce are critical to both operational success and perceived buyer confidence. Why Employee Retention Matters A business is only as strong as the people who run it. Skilled, motivated employees ensure

Family-owned businesses form the backbone of the UK economy. They combine tradition, long-term vision, and strong values. Yet when it comes to valuing these businesses — whether for a sale, succession, or exit planning — the process can be more complex than for non-family enterprises. Emotional ties, governance structures, and succession considerations all play a role. Balancing Emotion and Economics In family-owned firms, value is rarely just financial. Owners often see the

Valuing a business is never an exact science. For small and medium-sized enterprises (SMEs), the process is even more nuanced, as performance is often influenced not only by internal factors but also by the wider economic climate. Economic indicators — the data points that reflect the health of the economy — play a significant role in how buyers, lenders, and investors assess value. Understanding these factors can help business owners prepare more effectively for a sale or su

Valuing a business is never a one-size-fits-all exercise — and this is especially true for niche markets. Whether you operate in a specialised sector, serve a unique customer base, or produce a product that only a handful of competitors can match, standard valuation models often need to be adapted. At BusinessValuation.co.uk , we work with owners to produce valuations that reflect the real value of their business — not just the figures in the accounts. Here’s how to approach