Everyone I'm talking to these days is focused on boosting reocurring revenues for their business and for very good reason. If you're looking to cash out you need to make sure your financial model is focused on reocurring revenue. Better yet if you haven't started the business yet rework your financial model to make this your top priority.
I've worked with a company for many years that makes a "soup to nuts" solution. This includes proprietary hardware, software and professional and support services. The hardware has very good margins. The clientele are a captive market. You can't get it from anyone else so gross margins are high, up in the 80+ percent range. This is very rich margins. Even with great margins the multiplier on that revenue is 1 times current revenue. In short that is low. You have to sell a lot of that product to get a winning valuation. The professional services and support however is the big winner with valuation multiples of 7 times revenue. That part of the business is the valuation "cash cow".
If that paragraph above hasn't given you an "aha" moment then let's elaborate. Imagine you have a business that has revenues of $200,000 a year. That is a modest little business and very realistic. If your business model is based on selling goods you'd get an offer of $200,000. Now if your business model is based on reocurring revenue you'd get an offer of $1.4 million. That is one heck of a difference and you see that even a modest business could end up with a big pay day.
So if you're looking to boost the value of your business you need to focus on things like service contracts, warranties, autorenewing memberships, subscriptions, rental and leasing programs. These revenues become predictable and increase cash flow reliability. In an economy with lots of question marks this kind of stability is very desirable and that's why you get the big multiple. Change up your business model as soon as you can.