Break-fix remainder

Definition

The share of revenue still billed by the hour instead of under a contract.

Why It Matters

It is the number that decides which multiple the business gets. A managed provider is priced on recurring contracts; hourly work is a labor shop, and almost every seller describes a mixed book with the managed half in front. Pull the invoice detail and split it: which clients are on an agreement, what the agreement covers, and how much of last year's revenue came from tickets billed outside one. A book that is a third hourly is a transition project, and the work of moving those clients onto agreements is done by the new owner in year one, at exactly the moment the relationships are least secure.