Measure contract quality, not just monthly billing
Split recurring support from projects, hardware resale and unusual migrations. Show contract duration, cancellation terms and gross margin by service.
A buyer may discount revenue tied to your personal relationship with a few clients. Document which account manager handles renewals and what customers rely on you for.
Prepare a careful information handoff
Build a record of systems, vendor agreements and staff responsibilities. Keep passwords and customer credentials out of early sale materials.
Use a staged diligence process. A qualified buyer can examine financial evidence before receiving sensitive technical details through an agreed secure process.
Price the work you still do
If you lead sales, engineering and escalations, show the cost of replacing those roles. Owner earnings and profit after a manager salary answer different questions.
Agree what support you will provide after closing. A vague promise to help can turn into a long obligation that was never reflected in your price.
Prepare the evidence before negotiating the price
Your advisor should understand the difference between project sales and contracted support. Ask how a proposed value accounts for staff retention and client cancellation rights.
- Document Your Earnings Before a Business Valuation
- Prepare Your Lease for a Business Buyer
- Compare Cash at Closing With a Seller Note
Use the valuation form to describe the IT company, revenue range and contact details without sharing client passwords or sensitive network information.