For Technology Due Diligence

SaaS metrics meet financial DD rigor.

ARR normalization, deferred revenue, capitalized development costs. Technology DD requires sector-specific adjustments that Datapack captures and reuses.

From reported revenue to normalized ARR

SaaS Revenue Normalization
Reported Revenue
$12.4M
– One-time implementation fees
–$1.2M
– Professional services
–$0.8M
+ Deferred revenue adjustment
+$0.6M
= Normalized ARR
$11.0M

Sound familiar?

SaaS revenue recognition

ASC 606 complexities, usage-based pricing, and multi-element arrangements require careful normalization for QoE.

ARR vs. MRR normalization

Different targets report recurring revenue differently. Standardizing to true ARR requires consistent methodology.

Capitalized R&D classification

Distinguishing capitalized development costs from operating expenses varies by target and affects EBITDA adjustments.

Deferred revenue complexity

Annual prepayments, multi-year contracts, and usage credits create deferred revenue schedules that require detailed unwinding.

Technology-specific adjustments, captured and reusable

Stock-Based Compensation

Normalization

Normalize SBC impact on EBITDA across reporting periods

Capitalized R&D

Reclassification

Classify development costs between P&L and balance sheet

Customer Acquisition Cost

One-off

Separate one-time growth spend from recurring CAC

Deferred Revenue

Run-rate

ASC 606 adjustments for revenue timing differences

Measurable impact on every deal

Datapack directly improves the metrics your partners care about most: realization, utilization, and margin per deal.

0 days
Saved per Deal

On mapping, cleanup, and repetitive analysis

+0%
Realization Rate

Improvement across fixed-fee engagements

0x
Deal Throughput

More deals delivered with the same team

0%
Audit-Ready

Full traceability on every number

Trusted by deal teams

Transaction Services professionals on how Datapack improved their delivery.

ARR normalization methodology is now consistent across every SaaS deal. No more reinventing the framework each time.

Thomas Lefèvre

Thomas Lefèvre

Partner, Technology Transaction Services, Advisory Firm

Frequently asked questions

Standardize your technology DD playbook.

SaaS-specific mapping rules that compound with every deal.