HOW IMPORTANT IS RECURRING REVENUE TO YOUR SEARCH?
We have spoken to a number of searchers and mentors on the topic. To some, recurring revenue is a must and any businesses without it needs to be discarded. To others, recurring revenue is a nice to have but not a deal breaker. Some people argue its more than worth it to pay for the higher multiples while others see EBITDA multiples above 5 to be scandalous. We have also heard (and personally experienced) some banks won't even take a second look at you if you only have project-based work.
Would love to hear the community's thoughts on the subject!