The revenue that doesn’t transfer

Two firms with identical profits can command very different prices. Often the gap is hiding in who has the right to say no.

By Steve 5 min read
Abstract bridge artwork for The revenue that doesn’t transfer

Two firms in the same sector report the same revenue, the same margin, the same growth rate over three years. One attracts a materially higher price than the other. Owners tend to explain this away as buyer appetite, timing, or negotiating skill. Sometimes it is. More often the difference sits in a question the seller never asked: how much of that revenue arrives in the new owner’s hands without anyone else’s permission? A buyer is not purchasing last year’s profit. They are purchasing an expectation of future cash flows that…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Growth strategy

Scroll to Top