VMS NRR & Valuation Arbitrage Simulator
:root {
–bg-main: #f8fafc;
–bg-card: #ffffff;
–text-main: #0f172a;
–text-muted: #475569;
–primary: #0f172a;
–accent: #0d9488;
–accent-light: #ccfbf1;
–border: #e2e8f0;
}
* {
box-sizing: border-box;
margin: 0;
padding: 0;
font-family: -apple-system, BlinkMacSystemFont, “Segoe UI”, Roboto, Helvetica, Arial, sans-serif;
}
body {
background-color: var(–bg-main);
color: var(–text-main);
padding: 40px 20px;
line-height: 1.6;
}
.container {
max-width: 1050px;
margin: 0 auto;
}
header {
margin-bottom: 32px;
border-bottom: 2px solid var(–border);
padding-bottom: 20px;
}
h1 {
font-size: 24px;
font-weight: 700;
color: var(–primary);
letter-spacing: -0.02em;
margin-bottom: 8px;
}
.subtitle {
color: var(–text-muted);
font-size: 14px;
text-transform: uppercase;
letter-spacing: 0.05em;
font-weight: 600;
}
.description-card {
background: var(–bg-card);
border: 1px solid var(–border);
border-radius: 8px;
padding: 24px;
margin-bottom: 32px;
box-shadow: 0 1px 3px rgba(0,0,0,0.05);
}
.description-card h2 {
font-size: 16px;
margin-bottom: 12px;
color: var(–accent);
text-transform: uppercase;
letter-spacing: 0.03em;
}
.description-card p {
font-size: 15px;
color: var(–text-muted);
text-align: justify;
}
.grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 32px;
}
@media (max-width: 768px) {
.grid {
grid-template-columns: 1fr;
}
}
.panel {
background: var(–bg-card);
border: 1px solid var(–border);
border-radius: 8px;
padding: 28px;
box-shadow: 0 1px 3px rgba(0,0,0,0.05);
}
.panel-title {
font-size: 18px;
font-weight: 600;
margin-bottom: 24px;
color: var(–primary);
border-left: 4px solid var(–accent);
padding-left: 12px;
}
.input-group {
margin-bottom: 24px;
}
.input-label-container {
display: flex;
justify-content: space-between;
align-items: center;
margin-bottom: 8px;
}
label {
font-size: 14px;
font-weight: 600;
color: var(–text-main);
}
.value-display {
font-size: 14px;
font-weight: 700;
color: var(–accent);
background: var(–accent-light);
padding: 2px 8px;
border-radius: 4px;
}
input[type=”range”] {
width: 100%;
-webkit-appearance: none;
appearance: none;
height: 6px;
border-radius: 3px;
background: var(–border);
outline: none;
}
input[type=”range”]::-webkit-slider-thumb {
-webkit-appearance: none;
appearance: none;
width: 18px;
height: 18px;
border-radius: 50%;
background: var(–accent);
cursor: pointer;
transition: transform 0.1s ease;
}
input[type=”range”]::-webkit-slider-thumb:hover {
transform: scale(1.15);
}
.metric-card {
background: var(–bg-main);
border: 1px solid var(–border);
border-radius: 6px;
padding: 20px;
margin-bottom: 16px;
display: flex;
justify-content: space-between;
align-items: center;
}
.metric-card:last-child {
margin-bottom: 0;
background: #f0fdf4;
border-color: #bbf7d0;
}
.metric-info h3 {
font-size: 13px;
text-transform: uppercase;
letter-spacing: 0.03em;
color: var(–text-muted);
margin-bottom: 4px;
}
.metric-info p {
font-size: 12px;
color: var(–text-muted);
}
.metric-value {
font-size: 22px;
font-weight: 700;
color: var(–primary);
}
.metric-card:last-child .metric-value {
color: #15803d;
font-size: 26px;
}
.chart-container {
margin-top: 24px;
border-top: 1px dashed var(–border);
padding-top: 24px;
}
.bar-wrapper {
margin-bottom: 16px;
}
.bar-label {
font-size: 12px;
font-weight: 600;
color: var(–text-muted);
margin-bottom: 6px;
display: flex;
justify-content: space-between;
}
.bar-bg {
background: var(–border);
height: 24px;
border-radius: 4px;
overflow: hidden;
position: relative;
}
.bar-fill {
height: 100%;
background: var(–text-muted);
width: 0%;
transition: width 0.3s ease;
}
.bar-fill.optimized {
background: linear-gradient(90deg, var(–accent), #0f766e);
}
Strategic Capital Allocation Framework
VMS NRR & Valuation Arbitrage Simulator
Why Software Acquirers Trust This Framework
While conventional due diligence verifies historical tax returns and code syntax, it completely misses the behavioral drivers of asset value. This framework translates user experience (UX) friction and operational onboarding bottlenecks into clear financial risk. By treating user friction as an addressable system rather than an aesthetic issue, we identify exactly where Net Revenue Retention (NRR) is leaking. We then deploy low-code automation layers post-close to instantly plug these leaks and scale enterprise value—without writing a single line of legacy code or hiring a single developer. It is programmatic NRR insurance for lower-middle-market software acquisitions.
Compounding Financial Impact
ARR Expansion Delta
Annual recurring revenue preserved/unlocked inside existing accounts
$0
Net Cash Flow Increase
Immediate high-margin capital unlocked over baseline trajectory
$0
Equity Value Generated
Total Enterprise Value (EV) delta created solely via UX arbitrage
$0
Baseline Year 1 Enterprise Value
$0
Optimized Year 1 Enterprise Value
$0
const arrInput = document.getElementById(‘arr’);
const currentNrrInput = document.getElementById(‘current-nrr’);
const targetNrrInput = document.getElementById(‘target-nrr’);
const multipleInput = document.getElementById(‘multiple’);
const arrVal = document.getElementById(‘arr-val’);
const currentNrrVal = document.getElementById(‘current-nrr-val’);
const targetNrrVal = document.getElementById(‘target-nrr-val’);
const multipleVal = document.getElementById(‘multiple-val’);
const arrDeltaDisplay = document.getElementById(‘arr-delta’);
const cashDeltaDisplay = document.getElementById(‘cash-delta’);
const evGainDisplay = document.getElementById(‘ev-gain’);
const baseEvLabel = document.getElementById(‘base-ev-label’);
const optEvLabel = document.getElementById(‘opt-ev-label’);
const baseBar = document.getElementById(‘base-bar’);
const optBar = document.getElementById(‘opt-bar’);
function formatCurrency(num) {
return ‘$’ + Math.round(num).toLocaleString();
}
function calculate() {
const arr = parseFloat(arrInput.value);
const currentNrr = parseFloat(currentNrrInput.value) / 100;
const targetNrr = parseFloat(targetNrrInput.value) / 100;
const multiple = parseFloat(multipleInput.value);
// Update Slider Labels
arrVal.textContent = formatCurrency(arr);
currentNrrVal.textContent = currentNrrInput.value + ‘%’;
targetNrrVal.textContent = targetNrrInput.value + ‘%’;
multipleVal.textContent = multiple.toFixed(1) + ‘x’;
// Math Logic
const baselineYear1ARR = arr * currentNrr;
const optimizedYear1ARR = arr * targetNrr;
const arrDelta = optimizedYear1ARR – baselineYear1ARR;
const baselineEV = baselineYear1ARR * multiple;
const optimizedEV = optimizedYear1ARR * multiple;
const evGain = optimizedEV – baselineEV;
// Display Metrics
arrDeltaDisplay.textContent = formatCurrency(arrDelta);
cashDeltaDisplay.textContent = formatCurrency(arrDelta);
evGainDisplay.textContent = formatCurrency(evGain);
// Update Visual Chart
baseEvLabel.textContent = formatCurrency(baselineEV);
optEvLabel.textContent = formatCurrency(optimizedEV);
const maxEV = Math.max(baselineEV, optimizedEV, 1);
baseBar.style.width = (baselineEV / maxEV * 100) + ‘%’;
optBar.style.width = (optimizedEV / maxEV * 100) + ‘%’;
}
[arrInput, currentNrrInput, targetNrrInput, multipleInput].forEach(input => {
input.addEventListener(‘input’, calculate);
});
// Run on startup
calculate();
Jamika D. Burge 