As we move through February, let’s talk about a critical factor in making your practice attractive to buyers: Recurring Revenue & Client Retention.
When it comes time to sell, buyers aren’t just looking at revenue numbers—they want stability and predictability. A practice with strong recurring revenue and long-term client relationships is far more valuable than one with fluctuating income.
Here’s how to strengthen your practice’s appeal:
✔ Prioritize Long-Term Engagements – Shift toward recurring service models like monthly advisory, tax planning, or outsourced CFO services.
✔ Track Client Retention Metrics – Monitor client churn and proactively address service gaps to boost long-term loyalty.
✔ Diversify Revenue Streams – Don’t rely on a single service line; a mix of compliance, advisory, and consulting services adds resilience.
✔ Lock in Client Agreements – Formalize long-term contracts where possible, ensuring predictable revenue streams for future buyers.
Building a practice with reliable, repeatable revenue makes your firm more valuable—not just for a sale but for your own financial security.
Stay tuned for more tips next month!
- Justin Farmer, Esq., CBI
President & Founder of Private Practice Transitions
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