Valuation for a SaaS

by a searcher

1 week ago

Hello.

We are about to begin due diligence on a SaaS company. What recommendation do you give for the valuation? EBITDA or ARR multiple? And if you can give us visibility of the multiples we would appreciate it.

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professional from Oregon State University

Hi! If you haven't already, check out DealStats under the BVR Transactions icon at the top of the platform. DealStats has a ton of SaaS deals. https://www.searchfunder.com/bvr/sector/141

1 week ago | like reply | 0 likes

searcher from University of Maryland - Robert H. Smith School of Business

Like Connor said there are a lot of factors. To give an example of a deal that recently traded, I was working on a SaaS deal where the $8M business traded at a little under 3.5x ARR. It was a Tier-3 asset. Tier-1 Assets will trade at a much higher ARR multiple

1 week ago | like reply | 0 likes

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