Inside the Buyer’s Mind: Key Metrics That Matter in B2B Services Deals

1. Demonstrated Revenue Growth: A Reliable Track Record

Sustained revenue growth over the last few years is often the first signal buyers look for.

What buyers want to see:

• A multi-year track record of consistent top-line growth
• Growth achieved through repeatable delivery and process – not one-off projects
• Margin consistency or progression that reflects scale or improved operational leverage

One-off wins or inorganic growth spurts will be scrutinised closely. What instills confidence is a pattern – steady and explainable revenue increases, ideally underpinned by clear delivery capability and client demand.

2. Pipeline Visibility & Budget Confidence

Services businesses often have shorter contract lengths and higher variability than SaaS businesses. That’s why buyers want to understand how predictable your future revenue is.

Critical questions buyers will ask are:

• How much revenue is already locked in via existing contracts or purchase orders?
• How visible is the forward pipeline? What is the weighted value of near-term opportunities?
• How accurate has historical budgeting and forecasting been?

A useful rule of thumb: your unweighted pipeline should typically be at least 3x your budgeted revenue for the period, while your weighted pipeline should align closely with your budget – taking into account the timing of revenue recognition. This ensures that, even after factoring in conversion rates, the business has sufficient opportunity volume to meet (or exceed) its targets.

Showing alignment between pipeline and budget – supported by historical accuracy – builds confidence in your forward projections and builds buyer confidence in the credibility of your growth plan.

3. Client Retention & Stickiness: Do Clients Stay?

For services businesses, long-term value is driven not just by new wins, but by retention and repeatability of existing clients.

Some key metrics are:

• % of revenue from recurring or repeat clients
• Average client tenure
• Multi-year master services agreements or re-engagement history
• High renewal rates or ongoing scopes of work

Buyers look for signs that your service is “sticky” – that clients rely on your delivery, embed your teams in their processes, or see you as a strategic partner.

Importantly, SaaS-like or annuity-based revenues – where income is earned through ongoing subscriptions, retainers, or managed services – are particularly attractive. These models enhance revenue visibility, reduce volatility, and often support higher valuations compared to purely project-based work.

4. Client Concentration: Balanced Exposure with Sector Depth

Client concentration is a key consideration in B2B services M&A – but that doesn’t mean buyers are looking for total diversification. In fact, a focused industry footprint can be a competitive advantage, as long as it doesn’t translate into overreliance on individual clients.

What buyers want to see:

• No single client accounting for more than ~15-20% of total revenue
• Sector focus across 2-3 core industries where the business has built expertise
• A portfolio that demonstrates repeatability within those verticals (e.g. multiple clients in the infrastructure, defence, or financial services sectors)

Buyers value firms that have gone deep, not wide – especially where industry familiarity supports tailored service offerings, stronger client relationships, and defensible positioning. However, too much reliance on a handful of large clients – regardless of the sector – can elevate risk and impact valuation.

5. Team Scalability & Delivery Depth

In services, growth is limited by people. Buyers want to know that the team can scale – and that delivery isn’t overly dependent on a few key individuals.

What matters:

• A clear organisational structure with leadership depth
• Leverage across delivery teams (e.g. pyramid structure, not overly top-heavy)
• Documented processes and IP that support efficient onboarding of new staff
• A hiring model that keeps up with pipeline demand

Showing that the business can grow without diluting delivery quality is critical to building valuation upside.

Final Thoughts

Telling a compelling growth story in B2B services is about combining proven historical performance with clarity around future delivery. Buyers aren’t looking for perfection – they’re looking for confidence. Confidence that your revenue is predictable, your clients are sticky, and your delivery model is scalable.

At the end of the day, B2B services businesses are built on people and IP. It’s the strength of your team, the depth of your expertise, and the repeatability of your delivery model that will ultimately shape valuation and deal success.

And while operational delivery and retention are key, don’t be shy about putting incentive mechanisms in place – especially for sales and client-facing teams – based on new client acquisition. It signals commercial rigour, drives growth from within, and aligns your team’s focus with value creation, which buyers will see as a positive sign of maturity and scale readiness.