I read a good article by Karl Palachuk tonight that gives good insight into why it is so important to grow your recurring revenue if you ever want to escape the hassle of billing your time by selling your business (link posted below).
I do believe that the small provider with good hourly customers can still be bought out but Karl gives some good insight into one of the commonly voiced opinions about purchasing a small IT provider (less than 3M).
Let me know what conversations you have had or heard out there.
http://smallbizthoughts.blogspot.com/2008/02/few-notes-on-value-of-your-business.html
JC
