E-commerce, Creator & Digital Businesses · Seller readiness

Selling a Consumer Mobile App / Subscription Business business

Published · Reviewed by The Diligence Standard Team · Updated

An app seller should prepare MRR/ARR cohorts, churn, install attribution, store/account history, code/IP chain, security/privacy, release process, support burden and a transition plan for key developers.

How the business works

App value depends on subscription retention, app-store concentration, organic versus paid installs, product engagement, code/IP, privacy/security, platform compliance and founder/developer dependence.

Issues to resolve

  • App-store policy/account exposure is not quantified before a buyer controls the timetable
  • High subscriber churn is explained verbally instead of supported with platform or operating evidence
  • Paid-install dependence creates transferability uncertainty that can reduce price or change terms
  • Revenue is emphasized more than contribution margin, retention and cash conversion
  • Critical accounts, creative assets, data, IP or supplier relationships are not mapped for transfer
  • The owner waits until buyer diligence to separate personal influence from transferable enterprise value

Evidence to request and reconcile

  • Subscription cohorts
  • App Store/Play reports
  • Attribution/ad data
  • Code repositories/IP assignments
  • Security/privacy documentation
  • Crash/analytics reports
  • Store policy history
  • Developer/team contracts

Decision questions

  • What do 3/6/12-month retention cohorts show?
  • How much acquisition is paid?
  • Who owns all source code?
  • What store-policy issues exist?
  • What privacy/security incidents exist?
  • Can releases happen without founder developer?
  • What technical debt is material?
  • How concentrated is revenue by platform?