SaaS is the highest-volume category in digital M&A. Acquiry advises buyers and sellers across the full SaaS spectrum, from bootstrapped vertical software to PE-backed platform businesses. We bring deep knowledge of SaaS valuation, buyer pools, and deal structure to every mandate.
SaaS is not a monolithic category. Valuation, buyer profiles, and deal structure vary significantly across software types. Acquiry brings vertical-specific knowledge to every mandate.
Industry-specific software serving defined markets: legal tech, proptech, healthtech, agritech, construction, and logistics. High retention, strong pricing power, defensible niches.
Cross-industry platforms: CRM, HR, project management, accounting, marketing automation. Larger TAM, more competitive, valued on growth rate and net revenue retention.
Developer platforms, API businesses, data infrastructure, and DevOps tooling. Usage-based pricing, high technical moats, strategic acquirer interest from large platforms.
Platforms combining software with marketplace dynamics. Two-sided networks with embedded SaaS tools. Complex valuation requiring both SaaS and marketplace frameworks.
Subscription software serving individual users: productivity tools, creative software, personal finance, health and fitness. Valued on subscriber count, churn, and LTV.
Software businesses with AI as a core product differentiator. Rapid growth, evolving competitive dynamics, and premium valuations for defensible AI capabilities.
SaaS businesses are valued on a combination of growth rate, revenue quality, and operational efficiency. Understanding which metrics matter most for your specific business is critical to achieving a premium outcome.
The primary valuation anchor for most SaaS businesses. ARR multiples range from 2x to 15x+ depending on growth rate, retention, and market position.
NRR above 110% signals strong expansion revenue and is a significant premium driver. Buyers pay materially more for businesses where existing customers grow over time.
YoY ARR growth is the single most important multiple driver. Businesses growing 50%+ command premium multiples. Sub-10% growth businesses are valued closer to EBITDA multiples.
Monthly gross churn above 3% is a red flag for most buyers. Logo churn and revenue churn are both assessed. High churn compresses multiples significantly.
SaaS businesses typically target 70-85% gross margins. Below 60% raises questions about infrastructure costs or professional services dependency.
Businesses where the founder is deeply embedded in sales, product, or customer relationships carry a dependency discount. Buyers pay more for operationally transferable businesses.
The SaaS buyer pool is deep and diverse. Acquiry maintains active relationships across all buyer categories and matches sellers to the buyer profile most likely to pay a premium for their specific business.
Larger software companies acquiring for product capability, customer base, or market access. Typically the highest payers when there is genuine strategic fit. Acquiry identifies and approaches strategic buyers with a tailored thesis for each acquisition.
PE firms and growth equity funds acquiring SaaS businesses for platform builds, add-ons, or standalone investments. Typically value on ARR multiples with a clear path to EBITDA improvement. Active across the $5M to $200M+ range.
Entrepreneurial buyers acquiring a single business to operate. Strong fit for founder-led SaaS businesses in the $1M to $10M ARR range where the seller is looking for a capable operator to take over.
Acquirers building portfolios of SaaS businesses, often with a shared infrastructure or go-to-market model. Active in the lower mid-market. Can move quickly and offer certainty of close.
SaaS due diligence is more rigorous than most sellers expect. Understanding what buyers will examine allows you to prepare properly and avoid surprises that kill deals or compress price.
Buyers will reconcile reported ARR against actual contracted and collected revenue. Discrepancies between bookings and cash received are a common issue.
Retention by cohort reveals whether the business is improving or deteriorating. Buyers want to see cohort data going back at least 24 months.
Any single customer representing more than 10-15% of revenue is a concentration risk. Buyers will price this risk into their offer or structure earnouts around it.
Code quality, technical debt, infrastructure costs, and scalability. Buyers with technical teams will conduct code reviews and architecture assessments.
Auto-renewal clauses, cancellation provisions, price escalation rights, and assignment clauses all affect deal structure and value. Contracts are reviewed in full.
Customer acquisition cost and payback period reveal the efficiency of the growth engine. High CAC with long payback periods raises questions about unit economics.
Acquiry runs buy-side and sell-side mandates for SaaS businesses globally. Start with a confidential conversation about your objectives.