The Role of Recurring Expenses in Evaluating Profitability
Recurring expenses are the silent killers—or stabilizers—of profitability. I’ve seen deals where recurring costs were underestimated, leading to serious cash flow issues. That’s why I always dig into recurring expenses during due diligence. In this article, I explain how I analyze these costs, why they matter more than one-time expenses, and how they shape the true profitability of a business.
November 12, 20254 min read