Recurring Revenue Augmentation
Of all the factors that drive valuation multiples for skilled trade businesses, recurring revenue is at the top of the list — and it’s also the one that has proven most elusive for many operators. Private equity buyers want confidence in what the business generates when the owner steps back. Predictable, contractual revenue is the clearest signal of that.
We were on the forefront of the technology industry’s shift to SaaS — and we understood early what that model did to valuations. Annual Recurring Revenue (ARR) became a defining benchmark precisely because it de-risks the future in the eyes of a buyer. The same logic applies directly to skilled trades: service agreements, maintenance contracts, and membership programs are your ARR. We’ve been thinking about value creation through this lens since before most of the industry caught up.
We share best practices from businesses that have done this well, help you design programs that fit your market and customer base, and work with you to implement them in a way that creates measurable impact on your valuation story before you go to market.