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Software Buyout Lingo Explained

Private Equity Funcast

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Recurring Revenue: What You Need to Know

Reoccurring is RE-O and recurring is REC-Q-R-R. And there's a big difference in valuation in the two. But not a coincidence that people try to make them look the same because if you can get a recurring multiple on a reoccurring multiple and just kind of forget about the O in the mill, that's a great outcome if you're selling business. Ben: Having true contracted recurring revenue gives you a much higher belief in that future revenue. He says investors like sticky businesses that you can't really turn off without maybe hurting your business. Benjamin: I think once you get into the retention rate of those one year contracts and any lapses in service

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