In partner review. Industry review draft. Qualitative guidance only — it does not claim confirmed Curtis Wiltse transaction experience in this sector.
Industries · Business Services
Typical companies
Seller Challenges
01
Buyers distinguish between contracted recurring revenue, repeat project work and one-off engagements. The mix shapes how they view risk.
02
When the owner or a few senior people hold the client relationships, buyers worry that revenue may follow them out the door.
03
Termination rights, assignment clauses and change-of-control provisions determine whether contracts transfer cleanly to a new owner.
04
Buyers look at turnover, compensation structure and whether key staff have reasons to stay through and after a transition.
05
Aggregate margins can hide unprofitable clients or services. Buyers often ask for profitability at a more granular level.
Value Considerations
Qualitative factors only. Actual valuation depends on the specific company, its earnings and market conditions.
| Factor | Tends to strengthen | Tends to weaken |
|---|---|---|
| Revenue quality | Multi-year contracts, recurring service agreements, high retention | Mostly project-based or single-engagement revenue |
| Relationships | Clients served by teams, not only by the owner | Owner personally manages most key accounts |
| Contracts | Assignable contracts with clear renewal history | Informal agreements or change-of-control termination rights |
| People | Stable team, documented roles, retention incentives | High turnover or reliance on a few individuals |
| Scalability | Repeatable delivery processes and systems | Delivery that depends on individual judgment for every engagement |
Potential Buyers
Larger firms seeking new clients, geographies or service capabilities.
Firms building services platforms through acquisition may value recurring revenue and scalable delivery.
In some cases, internal leaders may be candidates, often with outside financing.
At smaller sizes, operators attracted to asset-light, cash-generating businesses.
Readiness
A practical starting list. Your advisors will tailor it to your company.
Questions Owners Ask
Buyers generally focus on earnings and on how durable those earnings are. Contracted, recurring revenue and a team that can deliver without the owner typically support stronger interest.
It depends on the contract and the transaction structure. Some contracts require consent to assignment or allow termination on a change of control. Your attorney should review them early.
They may ask the owner to stay through a transition, tie part of the price to retention, or both. Introducing other team members to clients before a sale can reduce that requirement.
Timing is a judgment call. Many owners involve a small number of key people under confidentiality at a defined stage, sometimes with retention incentives. Discuss the approach with your advisors first.
Continue
Article · Exit Planning
draftPractical steps for founder-led companies preparing to sell: reducing owner dependence, organizing financials, addressing concentration and understanding likely buyers.
Article · Valuation
draftHow buyers start from EBITDA, which normalization adjustments are commonly accepted or challenged, and why documentation shapes the value of a private company.
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Confidential, competitive sale representation.
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CPA-led earnings and value analysis.
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Founder-led companies, typically $3M–$10M.
