Short conversational video (Mark Evans DM) presenting a selling-company thought experiment: comparing a company with uneven annual revenue (examples around $10,000,000 with large month-to-month swings) versus a company with steady residual monthly income (example: $5,000,000 recurring). The speaker argues steady residual revenue yields higher valuation multiples (e.g., 10x) and highlights metrics buyers care about (attrition rate, client value).
Picture this. You're getting ready to sell your company. Would you rather buy a company that makes $10,000,000 a year, but it's like 1,300,000, 1.2,050,000? Or would you rather have a company has like a steady line across. This is your residual business. I make 5 million a year. Residually comes in every single month like clockwork. Here's the attrition rate, here's the client value. And then you have the other stuff in between that to make the other five. That $5 million residual line will get you a 10x multiplier. And then the other semi predictable, but not as predictable as monthly continuity. You might get a rex.
