Customer and Sales Due Diligence

NRR

Short for net revenue retention. Why it matters: This abbreviation appears often in deal conversations and documents, so owners should connect it back to Net Revenue Retention before agreeing to anything.

Related terms

Net Revenue Retention

A measure of how existing customer revenue changes after upgrades, downgrades, and losses. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Retention

Keeping employees after the sale. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Revenue

The total money the business brings in before expenses. Why it matters: Buyers look at revenue trends, customer mix, and repeatability to understand whether the business is growing, shrinking, or dependent on a few sources.

More from Customer and Sales Due Diligence

Backlog CAC CLV Conversion Rate Customer Acquisition Cost Customer Churn Customer Concentration Customer Lifetime Value Lead Net Revenue Retention One-Time Revenue Pipeline

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