Deavo
Due diligenceExpert answer · 1 min read

What should I ask about a mobile app’s in-app purchase and refund trends?

Ask for purchase and refund reports from the store consoles, broken down by item and by period. Compare what customers buy with what they ask to have refunded. A rise in refunds after an update or a price change often signals a problem the revenue totals hide.

Request the sales reports straight from the store dashboards, not a spreadsheet the seller built. They should show gross purchases, refunds and the net amount paid out after the store’s cut. Ask for them by item so you can see whether one product carries most of the income.

Study the refund pattern. Ask when refunds spike and what happened around that time: a new release, a bug, a price change or a promotion. Ask what customers write when they ask for a refund, and whether the seller has changed anything because of it.

Ask about subscriptions separately from one-time purchases. For subscriptions, find out how many customers cancel and when. For one-time items, ask whether buyers return to purchase again or only once. Check for dependence on a small group of heavy spenders. The answer changes how steady the income looks. Finally, ask your accountant to match the store payouts to the bank deposits, and to explain any timing gaps. Put your findings into the purchase agreement as questions your lawyer can turn into promises. Ask too whether any items were removed or renamed, which can break comparisons across periods.

Key takeaways

  • Use store reports, broken down by item and period.
  • Look for refund spikes after updates or price changes.
  • Check whether a few big spenders carry the revenue.
  • Ask for refund reasons in the customers’ own words, not only the counts.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are financial statements?
    bdc.ca·Checked Oct 24, 2026

Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.