Connecting Buyers, Investors, and Technology Services Firms
For more than two decades, I have built relationships across the Google and Microsoft partner ecosystems, working with business owners, executives, investors, acquirers, and industry leaders throughout the technology services market.
Today, I help buyers, investors, and business owners identify acquisition opportunities, strategic relationships, and growth initiatives that often emerge through trusted networks long before they become widely known.
My focus includes managed service providers (MSPs), cloud consultancies, technology services firms, recurring revenue businesses, and companies operating within the Google and Microsoft ecosystems.
Through years of industry involvement, I have developed a broad network of relationships that provides unique insight into market trends, potential transactions, and strategic opportunities.
Whether you are seeking acquisition opportunities, evaluating strategic alternatives, exploring a future exit, or looking to better understand what drives value in today's technology services market, I welcome the opportunity to have a confidential conversation.
"The question is which firms will become acquirers, which firms will become acquisition targets, and which firms risk being left behind."
— Rick Fulton
DECADES OF EXPERIENCE IN THE ECOSYSTEMS THAT DRIVE TODAY'S BUSINESS
Managed Service Providers (MSPs)
Microsoft CSPs
Modern Workplace & Collaboration
Infrastructure & Data Solutions
AI & Automation Consultancies
Recurring Services & Subscription Models
Security & Compliance
Google Cloud Partners
The Service-to-Cloud Multiplier
A Special Report by Rick Fulton
How Recurring Revenue Creates Disproportionate Enterprise Value
Why Google's $7.05 Rule, Microsoft's Cloud Strategy, and the SaaS Apocalypse Matter to Owners, Investors, and Acquirers
Executive Summary
For decades, technology services businesses were valued primarily on historical earnings.
A company generated revenue, produced EBITDA, and buyers applied a multiple.
Simple.
Then cloud computing, software subscriptions, and managed services changed the equation.
Suddenly, not all revenue was created equal.
A dollar of recurring revenue became worth more than a dollar of project revenue.
A dollar of cloud revenue became worth more than a dollar of traditional services revenue.
And a dollar of highly retained recurring revenue became worth dramatically more than either.
Two powerful concepts help explain why.
The first is Google's famous "$7.05 Multiplier," which demonstrates how recurring customers generate economic value far beyond their initial revenue contribution.
The second is what many investors refer to as the "Service-to-Cloud Multiplier," the phenomenon whereby businesses increase enterprise value by shifting revenue from one-time services to recurring cloud and managed services offerings.
Together, these concepts help explain one of the most important trends in modern technology M&A:
Enterprise value increasingly follows recurring revenue quality rather than revenue quantity.
In this report, I examine the relationship between recurring revenue, customer retention, cloud adoption, and enterprise value.
Topics include:
• Google's $7.05 Multiplier
• The Service-to-Cloud Multiplier
• Revenue Quality vs Revenue Growth
• Why Retention Drives Valuation
• The SaaS Apocalypse and What It Changed
• What Private Equity Firms Look For
• Why Some MSPs Outperform Others
CLICK HERE TO READ THE FULL REPORT
(no download needed)