Illustrative example. The metrics, company, and outcome below are representative of patterns ProofCap detects in real audits but do not correspond to a specific customer or transaction. All figures are invented for demonstration purposes.
MRR Inflation in a B2B CRM — How a 42% Discrepancy Was Caught Before Closing
Seller claimed
ProofCap found
Plausibility Score
The audit connected directly to the seller's Stripe account and found that three enterprise contracts billed annually were being presented as recurring monthly revenue at full contract value. At a normalised monthly recognition rate, verified MRR was $7,200 — 42% below the listed figure. Churn was also understated: Stripe's cancellation event log showed a 90-day rate approximately 4× higher than claimed.
Risk Vectors Identified
Claimed MRR includes three annual contracts counted at full face value rather than recognised monthly. Stripe charges show lump-sum payments 10–14 months apart with no monthly recurrence.
Churn rate of 1.8% is inconsistent with subscriber count trajectory over the 90-day window. Stripe data shows 4 cancellations against a base of 58 active subscriptions — closer to 6.9% monthly.
GA4 sessions are broadly consistent with revenue claims at the verified MRR level, but engagement rate (61%) is above the median for tools in this vertical — worth confirming session quality with the buyer.
Outcome
Armed with the audit report, the buyer renegotiated from a 4.3× ARR multiple down to a 3.1× multiple on verified ARR, reducing the transaction price from $480K to approximately $268K.
“The report found exactly what we suspected but couldn't prove. Three numbers on a dashboard don't hold up when you're looking at the actual charge events.”
— Buyer (identity withheld)
Want your acquisition verified before you close?
Start a Forensic Audit