Because businesses with a recurring revenue/subscription model are valued far higher than comparable "buy" businesses.
And of course, the more guaranteed revenue you can demonstrate, the more valuable your business is going to be for potential acquirers. “Because a high percentage of the revenue of a subscription-based business is recurring, its value will be up to eight times that of a comparable business with very little recurring revenue,” claims Warillow.
And of course, the more guaranteed revenue you can demonstrate, the more valuable your business is going to be for potential acquirers. “Because a high percentage of the revenue of a subscription-based business is recurring, its value will be up to eight times that of a comparable business with very little recurring revenue,” claims Warillow.
https://www.techradar.com/news/how-recurring-revenue-can-inc...