How to Build Recurring Revenue
The Influential Personal Brand Podcast
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How Recurring Revenue Affects Business Valuation
Most companies are valued on profit or eBITDA earnings before interest taxes depreciation and amortization which basically just means profit. Recurring revenue like SaaS companies often are valued on revenue so if you get a value of let's say, five times your profits it affects business valuation. So for example to use this same example a company that produces a dollar in profit every year Let's say their revenue is ten dollars So that would be a company operating at a ten percent profit margin So they generate ten dollars in revenue.
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