App Exit Glossary: 24 Words Every App Founder Should Know Before Selling

In plain words: an app exit comes with its own language, and not knowing it costs you money. Here are the 24 words you will hear from buyers, brokers and marketplaces, each in one or two plain sentences, plus why it matters for your price.

Tough love up front: if a buyer says "SDE", "earnout" or "rollover" and you nod without knowing, you just lost money. Learn these before your first call, not during it.

The numbers buyers price

What is MRR (monthly recurring revenue)?

The subscription revenue your app brings in every month, without one-off purchases. It is the first number every buyer asks for. Show it net of refunds and store fees.

What is ARR (annual recurring revenue)?

MRR times 12. Fast-growing subscription apps are often priced as a multiple of ARR instead of profit. See our valuation guide.

What is net revenue?

What is left after Apple or Google take their 15–30% cut and after refunds. Always ask if a multiple is on gross or net revenue. "3x revenue" on gross and on net are two very different checks.

What is SDE (seller's discretionary earnings)?

Profit plus what you pay yourself plus one-time costs. Used to value owner-run apps, because it shows what a new owner could take home.

What is EBITDA?

Earnings before interest, taxes, depreciation and amortization: operating profit. Used once the app has a team and real operating costs.

What is a multiple?

The number a buyer multiplies your profit, SDE, EBITDA or revenue by to get the price. In 2026, subscription apps typically sell for 2x–5x ARR or 3x–5x SDE. See the full ranges.

What's the difference between asking price and closing price?

The asking price is what a seller lists for. The closing price is what a buyer actually pays after due diligence. On marketplaces, the gap can be big. Plan for the closing price.

What is verified revenue?

Revenue a buyer can check directly in App Store Connect, Google Play, RevenueCat or Stripe, instead of a number the seller typed in. Verified listings ask for more. Connect your data before you sell.

The metrics that move your price

What is churn?

The share of paying users who cancel or fail to renew in a period. High churn is the fastest way to lose a multiple point. Split it into users who cancel and payments that fail.

What is a renewal rate?

The share of subscribers who pay again when their plan ends. If a buyer could see one chart, it would be your renewal curve.

What is D7, D30 and D90 retention?

The share of new users still active 7, 30 or 90 days after install. Buyers read it as proof that people keep using the app without being pushed.

What is LTV (lifetime value)?

The total revenue you expect from one user over their whole time in the app. Compared with CAC, it shows if growth makes money or burns it.

What are CAC and CPI?

Customer acquisition cost / cost per install: what you pay to get one user. Ads at breakeven are a red flag. Organic installs are worth more.

What are organic installs?

Users who find your app through store search, word of mouth or press, without paid ads. The question buyers ask: if you turned off ads tomorrow, what would still be there in 90 days?

The deal words

What is an LOI (letter of intent)?

A short, mostly non-binding document with the price and main terms, signed before due diligence starts. It usually comes with a period where you agree not to talk to other buyers.

What is due diligence?

The buyer's check of your numbers, code, accounts, legal setup and users before the deal closes. Clean data from day one is what makes it fast. Surprises get negotiated down.

What is an earnout?

Part of the price paid later, only if the app hits agreed targets after the sale. It shifts risk to you. Know exactly how the targets are measured.

What is escrow?

A neutral third party holds the money until both sides have done their part. Common on marketplaces and for smaller deals.

What's the difference between an asset sale and a share sale?

In an asset sale the buyer buys the app itself (code, accounts, users). In a share sale the buyer buys the company that owns it. Most small app deals are asset sales. It changes taxes and paperwork, so ask an accountant.

What is rollover equity?

When a seller swaps part of their stake for shares in the buyer's company instead of taking cash. Bumble's founder rolled about half her shares into the buyer's company in 2026. Read the Bumble exit analysis.

What is a take-private deal?

When a buyer acquires all shares of a public company and takes it off the stock market. Bumble went private this way in October 2026.

What is a revenue-share partnership?

A deal where a partner invests in growth and takes a share of future revenue, while the founder keeps part of the app. An option for founders who are tired but not ready to let go. See the 7 types of app buyers.

What is an app transfer?

Moving the app to the buyer's developer account after the deal: App Transfer in App Store Connect or app transfer in Google Play Console. Plan code, servers, payment accounts and analytics in the same handover checklist. Guides: iOS, Android.

What is an app aggregator (app growth studio)?

A company that buys several apps and grows them with a shared team for product, monetization and user acquisition. BlueThrone is one. They pay for apps with real product-market fit and room to grow.

Want these numbers for your own app?

Now you speak buyer. Get the full valuation guide, or tell us about your app and get a data-backed valuation in 10 business days. Tell us about your app →

Written by Idan Waller, co-founder of BlueThrone. We buy and grow mobile apps, and these are the words we use with founders every week.