Revenue tells the story of size. Cash flow tells the story of value. Buyers don’t buy how busy you are — they buy the earnings they can reliably continue after closing.
A plumbing business built around the owner may generate impressive revenue but still receive a discounted valuation. A smaller company with recurring service agreements, a qualified team, and documented systems can command a premium.
The multiple is where value is won or lost. Strengthen the factors buyers reward, reduce the risks they fear, and you can change the number without simply chasing more revenue.