Plain-English definitions of the metrics and deal terms behind buying and selling online businesses.
MRR expressed as a yearly figure — MRR × 12.
The rate at which customers or revenue are lost over a period.
The buyer's verification of a business's financials, traffic, and legal standing before closing.
Deferred deal payment contingent on the business hitting agreed targets post-sale.
Earnings before interest, taxes, depreciation, and amortization.
A mostly non-binding document setting out the proposed deal terms before diligence.
The predictable subscription revenue a business earns each month.
Profit available to a single owner-operator, before their own compensation.
A metric measured over the most recent 12 months.
The factor applied to a profit or revenue metric to estimate a business's price.