Customer and Sales Due Diligence

Recurring Revenue

Revenue that repeats regularly, such as subscriptions, contracts, or ongoing service agreements. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Related terms

Advisor

A professional who helps with the sale, such as a broker, M&A advisor, CPA, attorney, or investment banker. Why it matters: The right advisor can help prepare materials, explain tradeoffs, manage buyers, reduce surprises, and keep the owner from negotiating complex deal terms alone.

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.

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.

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 NRR One-Time Revenue

Browse all 236 terms in the knowledge bank →

Get a real advisor on your team

Looking up terms is helpful. Having a vetted advisor who explains them in the context of your specific business is better.

Plan your exit Back to knowledge bank