This six-year-old agency reports 98% recurring revenue and a 50.8% cash-flow margin, but the 13-month average client lifespan is the more important figure for underwriting retention.

The numbers: The $4.0M asking price equals approximately 2.3x annual revenue and 4.6x annual cash flow, based on $1.72M in gross income and $874.3K in cash flow. The reported $33K client lifetime value closely matches 13 months at the stated $2,567 average monthly fee, suggesting the LTV figure is based on revenue rather than contribution profit.

How it works: The agency provides a done-with-you acquisition system for independent financial advisors using webinars, educational events, advertising funnels, automated follow-up, appointment setting, campaign management, and coaching. Approximately $5,000 in monthly Facebook ad spend reportedly brings in three to five new clients, supported by an active email list of roughly 9,200 advisors and a broader database of more than 28,500 prospects.

The seller situation: Three employees handle marketing execution, client communication, appointment setting, and sales support, but the owner still works approximately 20 to 30 hours per week. This should not be underwritten as a manager-run agency until buyers understand which responsibilities remain with the owner and whether the existing team can absorb them after closing.

Worth asking: How is the reported 98% recurring-revenue figure calculated, and what percentage of six- and 12-month clients renew after their initial agreement?