WHAT A BUYER WILL ACTUALLY TEST
Commercial and financial diligence teams treat your ARR as a starting hypothesis. Every claim in the equity story gets one of five tests.
Reality. Is the ARR real, contracted and recurring? They rebuild it from invoices, customer by customer.
Durability. Will it renew? They split NRR into price and volume and read it by cohort and by acquisition.
Repeatability. Can new ARR be bought predictably? They look at how quota attainment is spread across the team, not the average.
Predictability. Does management know next quarter? They put eight quarters of forecast next to eight quarters of actuals.
Upside. What's left in the contracts? Uplifts not applied, usage not billed. If you don't claim it, the buyer does, in their model, at their price.