Half the revenue transfers. The other half gets a vote.

What a business is worth at sale depends less on how much revenue it has than on whether that revenue can change hands without anyone's permission.

By Steve 5 min read
Abstract bridge artwork for Half the revenue transfers. The other half gets a vote.

Most owners preparing for a sale spend their energy on the size and trend of revenue. Buyers spend theirs on a narrower question: how much of that revenue still arrives after the shares change hands, and what has to happen for it to arrive. Those are not the same question, and the gap between them is usually settled years before anyone opens a data room, in renewal emails nobody kept, in terms nobody read since signature, and in the habit of trading with good customers on trust rather than paper.…

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