Glossary
Recurring revenue
Income that repeats on a predictable basis, from retainers, subscriptions, programmes or long term contracts, as distinct from one-off project revenue.
In plain English
Buyers value recurring revenue because it gives visibility of future earnings. Within it, they look at how it is contracted, the notice periods, how long clients have been retained and whether the scope has grown or shrunk over time.
Repeat revenue from clients who come back project after project is valuable too, and buyers weigh it according to the evidence of retention, margin and cash collection, not automatically below contracted income.
Why it matters
The proportion and quality of recurring revenue is one of the strongest influences on how a buyer views an agency, and on the structure it offers.
What to watch for
- Report recurring, repeat and one-off revenue separately.
- Document the contractual basis and notice periods of retained work.
- Track retention and the reasons clients leave.
Transaction language and legal treatment depend on the agreement and the jurisdiction. Written by Motion Advisory Partners as general guidance, not legal advice.