Why do two businesses with similar revenues sometimes sell for dramatically different prices?

Revenue represents only one measure of business performance. Buyers also evaluate profitability, recurring cash flow, customer concentration, management depth, owner dependency, industry outlook, operating systems, employee stability, lease terms, competitive position, and future growth opportunities.

Businesses earning similar revenue can produce very different values depending on the quality, durability, and transferability of those earnings.

Buyers invest in future performance—not historical sales alone.