Skip to content

For billing company owners

How a revenue share sale of a billing business works

You get paid out of what your clients actually pay, for an agreed period. Here's what that means for you, including the part you might not like.

Get a confidential estimate

No commitment

Two men shaking hands across an office desk

Try the arithmetic

See how the payments would change

Choose whatever numbers you like. The last slider shows what happens if some clients leave over time.

Total in this example
First month

Estimated monthly payment to you

This is only an example using the numbers you choose, and it isn't an offer. Every term gets negotiated with each owner and depends on diligence.

Compared

Revenue share and a seller note

Both pay you over time, but the risk falls in different places. We don't offer seller notes with interest, so this is just here to help you compare.

What you receive

Revenue shareAn agreed share of revenue collected

Seller note with interestFixed monthly payments

Interest

Revenue shareNo interest is paid to you

Seller note with interestInterest is often paid to you

If clients leave

Revenue shareYour payments go down

Seller note with interestPayments are still owed, but the buyer may struggle to pay

Your main risk

Revenue shareClients leave, or the buyer performs poorly

Seller note with interestThe buyer can't pay

If clients stay

Revenue shareYour payments continue as agreed

Seller note with interestYour payments continue as agreed

Buyer incentive

Revenue shareBoth sides want clients to stay

Seller note with interestYou rely on the buyer's ability to pay

Offered by Fieldstone

Revenue shareYes, our preferred structure

Seller note with interestNo

In your agreement

What we would agree on together

All of this should be in writing before you sign anything.

  • The share

    The percentage of eligible collected revenue you receive.

  • The period

    How many months the payments last.

  • Eligible revenue

    Which clients and which fees count toward the share.

  • Any cap

    Whether total payments have a negotiated limit.

  • Your right to check

    How you see the numbers behind each payment.

  • Your involvement

    What you do during the handover, and for how long.

Questions

Questions about revenue share

Is a revenue share the same as an earnout?

They are closely related. An earnout generally ties part of the price to future results, and a revenue share is one common way to do that. Your attorney can advise on how a specific agreement should be described.

What percentage do you offer?

We don't publish a figure. It depends on verified revenue, contract terms, how concentrated the clients are and how much work the handover involves.

How do I know the payments are correct?

The agreement should give you a report behind each payment and the right to check it. You should ask for that from any buyer.

How are revenue share payments taxed?

That depends on the agreement and your situation. Tax rules may treat parts of deferred or contingent payments differently from how they are described in a contract, so ask your tax adviser before signing.

This page is general information. It isn't legal or tax advice and it isn't an offer, so have your own advisers review any agreement.

Find out what your client list might be worth

We'd sign an NDA first, then send you a non binding written estimate. You don't have to do anything with it.

Get a confidential estimate