►EXECUTIVE SUMMARY 1) "RECURRING REVENUE" IS BULL JUNK 80% OF THE TIME: You have heard the phrase a thousand times in small business. Do not believe it until somebody proves it, because the word is doing a lot of work that the contracts will not back up. 2) THE SIM SAID 80% RECURRING. THE CONTRACTS SAID SOMETHING ELSE: This was an accounting firm, and revenue, cost and EBITDA all tied out. The lie was not in the numbers. It was in one word attached to them. 3) LAZY BUYERS SAY "I DON'T KNOW HOW TO CHECK THAT": You check it by going to the contracts. If the contract says recurring and it has recourse, it is recurring. Project work that happens to get renewed a lot is not, no matter what the broker tells you. This is not a SaaS company. 4) ABOUT HALF OF IT WAS JUST REPEAT REVENUE: You pay more for recurring revenue, so when it is not recurring, you pay less. Mateo reworked the analysis and renegotiated the deal to match the business that actually existed, not the fairy tale in the SIM. 5) HE IS DOING GREAT AND WE ARE WORKING TWO ADD-ONS: The real question for you is simple. Would your QoE provider have read the contracts, and would they have known how to pull the answer out of them? That is the difference between a great QoE firm and a mediocre one.