How do I raise my number before I sell?

Move customers to annual contracts, spread revenue so no single customer is a big share, hire a leader under you, and get your books reviewed by outside accountants. Start two years out, not when the phone rings.

What do buyers check first?

Clean monthly books, retention by customer, customer concentration, whether key contracts transfer, and who on the team stays after the deal.

← All answers

For: Founders who've had a buyer call, or expect one in the next few years

What is my company worth?

My answer, as of Oct 5, 2026

Your company is worth a range, not a number. Where you land in that range comes down to three things: how predictable the revenue is, how concentrated your customers are, and how much the business depends on you. Retention moves your value more than anything else.

Keith Brown · Growth & Leadership

Answered Oct 5, 2026

Where the line actually sits

Recurring

Revenue that renews on its own

Software with recurring, retained revenue trades on a multiple of annual recurring revenue. Revenue you have to win again every year is worth far less.

~1x

Where services businesses tend to trade

Services businesses trade closer to one times revenue, or a multiple of owner earnings. Everything else lands in between, depending on how the revenue behaves.

Top 5

The customers a buyer checks first

If one customer is a big share of revenue, the buyer prices in the day they leave. Buyers look at the share of revenue from your top five and top ten customers.

Without you

Whether the business runs when you're gone

If the business stops when you stop, a buyer is purchasing a job, not a company. A leader under you who can run sales or operations moves the number.

What changed in the last year

Buyers look harder at revenue quality than revenue size. Retention, contracts that transfer, and clean monthly books get checked before the headline number.
AI is splitting software into two groups. Products that own data and get better with use are priced differently from interfaces built for people clicking around.

What most founders get wrong

“A public company trades at 10x, so I'm worth 10x.”
Anchoring on a headline multiple from a public company or a press release is one of the most common mistakes. Your range depends on how your own revenue behaves.
“Signed revenue counts the same as renewed revenue.”
Revenue that hasn't renewed yet isn't counted as if it will. Buyers look at how much of last year's revenue came back this year.
“The highest offer is the best offer.”
A higher price with most of it deferred can be worth less than a lower price in cash.

When I'd tell you the opposite

If your revenue is mostly one-off projects, the multiple-of-revenue logic doesn't apply. Buyers will price you on earnings instead.
If a buyer needs your product or data strategically, the range can move well above what the numbers alone suggest. That's why it pays to talk to more than one buyer.

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