Why it matters
Headline revenue alone does not show how dependable the business is. A light-touch view of recurring revenue, retention and expansion, customer concentration and commercial commitments can reveal weaknesses that may become significant during diligence.
The conclusion we need
Determine whether the revenue base appears reasonably repeatable, predictable, retained and diversified for the company's model and stage, and whether concentration, contraction, contractual commitments or customer-specific delivery dependencies create obvious weaknesses that should be evidenced, addressed, explained or referred before diligence.