ARR
Annual Recurring Revenue — The annual recurring revenue, basis for SaaS valuation multiples. Do not confuse with total revenue which includes one-shot revenues.
Asset deal
Acquisition of assets only (code, IP, contracts, clients) without taking on the legal company structure. Opposite of a share deal.
CAC
Customer Acquisition Cost — Cost of acquiring a client. An LTV:CAC ratio > 3:1 is the minimum threshold for a healthy B2B SaaS.
Churn
Attrition rate. Client churn (% of clients lost) vs revenue churn (% of revenue lost). Revenue churn is more significant for valuation.
Closing
Legal and financial completion of the transaction. SPA signature + balance transfer + rights transfer.
Data room
Secure document sharing space between seller and qualified acquirer, under NDA. Contains complete audit materials (financial, technical, legal).
Due diligence
In-depth audit process conducted by the acquirer before closing. Covers technical, legal, financial, and commercial dimensions.
Earnout
Conditional price supplement paid after closing, based on achieving defined targets (ARR, growth, retention). An interest-alignment mechanism between seller and acquirer.
Escrow (séquestre)
Amount held by a third party (bank or notary) during the period between signing and closing. Protects the seller against payment default.
Grade AEG
Independent certification from Aegryn analysts on a tech asset, issued following a reproducible protocol. From ★ (Exceptional) to B (Standard). Not assigned = Refused. Based on 4 dimensions: Code, IP, Finance, Security.
LOI (Letter of Intent)
Non-binding letter of intent. First formalisation of the agreement between buyer and seller on the indicative price and main conditions.
LTV
Lifetime Value — Total revenue generated by a client over their lifetime. Formula: LTV = ARPU × (1 / monthly churn).
MRR
Monthly Recurring Revenue — ARR divided by 12. Useful for young or fast-growing assets.
Multiple ARR
Sale price expressed as a multiple of annual ARR. Example: asset with €500K ARR sold for €2M = 4x ARR multiple. Primary SaaS valuation indicator.
NRR
Net Revenue Retention — Measures revenue evolution on a cohort of existing clients. NRR > 100% = net expansion. Critical indicator for premium multiples (NRR > 110% → top quartile multiples).
PE (Private Equity)
Investment fund that acquires to restructure and resell at a 3–7 year horizon. Represents approximately 58% of SaaS acquirers in Europe in 2025.
Search Fund
Vehicle created by an entrepreneur (the searcher) to raise capital, find a company to acquire, and operate it personally. A fast-growing model in Europe.
SPA (Share Purchase Agreement)
Final transfer deed in the case of a share deal. The main legal document of the transaction, signed at closing.
Strategic buyer
Industrial acquirer who integrates the asset into their existing activity (acqui-hire, technical integration, vertical expansion). Can pay significant premiums vs PE funds.
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