Valuation guides, ARR multiples, churn analysis, and exit strategies for SaaS and software businesses.
4.0x – 10.0x
Profit Multiple
6.0x
Average Multiple
3–6 months
Time to Close
Very Strong
Buyer Demand
SaaS businesses command the highest multiples of any business type, driven by predictable recurring revenue.
Monthly churn under 3% is the most important metric. Every 1% improvement in churn can add 0.5-1x to your multiple.
Net Revenue Retention (NRR) above 100% means existing customers spend more over time, this is the gold standard for buyers.
The Rule of 40 (growth rate + profit margin > 40%) is the benchmark. Businesses exceeding it command 2-3x premium multiples.
Technical debt and codebase quality are heavily scrutinized, clean architecture and documentation matter more than in any other business type.
Everything you need to understand this market, whether you're buying, selling, or advising.
ARR multiples, SDE multiples, buyer types, tech due diligence, and the complete process.
ARR vs SDE, Rule of 40, churn impact, NRR, CAC payback, and real-world examples.
Pre-sale checklist: MRR reconciliation, codebase documentation, security audit, and churn reduction.
Whether you're buying, selling, or just exploring, we can help.