What Multiples Do SaaS Businesses Sell for in 2026?
Current SaaS multiples by category, with examples of recent transactions.
Current Multiple Ranges by ARR Tier
Businesses under $500k ARR continue to transact at the lowest end of the spectrum, typically 2.0x–2.8x forward ARR on platforms such as MicroAcquire and hades.ae. Companies between $500k and $2M ARR command 3.0x–3.8x when net revenue retention exceeds 110% and monthly churn stays below 2%. Larger assets above $2M ARR that reach private equity buyers on Acquire.com or FE International regularly clear 4.0x–5.0x ARR if EBITDA margins are above 25%.
Key Drivers Behind 2026 Multiples
Growth rate still matters, but profitability now carries equal weight. A 40% YoY growth SaaS with 30% EBITDA can expect a 0.8x–1.2x premium over an identical-growth peer showing single-digit margins. Churn below 1.5% monthly adds another 0.5x–0.7x, while customer concentration above 25% in any single account typically triggers a 0.5x haircut. Buyers also scrutinize rule-of-40 scores; companies scoring above 50 routinely achieve the top quartile of observed multiples.
Real Transaction Examples
- ProjectPulse (B2B productivity, $1.1M ARR, 35% growth) sold on Empire Flippers for 3.4x ARR in Q3 2025 after a 60-day LOI-to-close process.
- InvoiceLayer (fintech vertical, $2.8M ARR, 22% EBITDA) closed at 4.6x on Acquire.com with a 15% escrow holdback and 18-month earn-out tied to NRR targets.
- TeamSync (HR automation, $680k ARR) changed hands on hades.ae for 2.7x ARR, reflecting 2.8% monthly churn and heavy reliance on one enterprise client.
Valuation Methodology Buyers Apply
Most 2026 acquirers start with a 12-month trailing ARR figure, then apply a multiple derived from comparable transactions on the same platform. They adjust for SDE versus GAAP EBITDA differences and normalize founder salaries to market rates. The resulting enterprise value is typically structured with 70–80% cash at close and the remainder held in escrow for 12–18 months to cover indemnity claims.
How do churn and NRR affect the multiple?
Each additional percentage point of monthly churn above 2% reduces the multiple by roughly 0.3x, while NRR above 115% reliably adds 0.4x–0.6x to the headline valuation.
What is the typical LOI-to-close timeline?
Most deals on Acquire.com and FE International move from signed LOI to APA completion in 45–75 days when the seller maintains clean books and a documented customer-success process.
Are vertical SaaS businesses valued higher?
Yes—vertical solutions with deep workflow integration and switching costs above $50k per customer often trade at a 0.5x–0.8x premium to horizontal peers of identical ARR and growth.
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