2026 Multiples by ARR Tier
Buyers on hades.ae, Empire Flippers, and Acquire.com price SaaS assets in clear bands. Sub-$500k ARR companies still clear 2.2-3.0× ARR when churn sits below 5 % and the product has no major technical debt. At $500k-$2M ARR the range widens to 3.0-4.2×, reflecting better process documentation and usually a founder who can stay on for a 6-12 month transition. Above $2M ARR, platforms such as FE International and Microacquire routinely close deals at 4.0-5.0× ARR provided NRR exceeds 110 % and gross margins stay above 75 %.
Key Metrics That Move the Multiple
Revenue quality now outweighs headline growth. Net revenue retention above 120 % adds roughly 0.8× ARR to the final price. Monthly churn above 3 % subtracts 0.6-1.0×. Gross margin compression below 70 % triggers an automatic 15-20 % haircut because acquirers model higher support and infrastructure costs post-close. Magic-number efficiency (net new ARR divided by prior-quarter sales and marketing spend) above 0.8 commands a premium because buyers see a repeatable growth engine rather than paid-user acquisition.
Valuation Methods Buyers Actually Use
- ARR multiple – still the headline number quoted in LOIs.
- SDE or EBITDA bridge – applied when the founder performs customer support or development; add-backs are scrutinized line-by-line.
- Comps from recent exits – hades.ae publishes anonymized deal data showing median 3.7× ARR for B2B vertical SaaS between $800k and $1.5M ARR in Q4 2025.
Due-Diligence Adjustments in 2026
Escrow holdbacks now average 15 % of purchase price, released over 12-18 months against churn and contract-renewal risk. APA structures increasingly include earn-outs tied to 90-day post-close revenue retention; missing the target by more than 10 % can reduce total proceeds by 0.5× ARR. Data-room red flags—single points of failure in code, missing SOC 2, or >30 % revenue from one customer—routinely drop offers by 0.75-1.25× ARR before negotiations even begin.
Where to Sell and What to Expect
Marketplaces segment by size and seller involvement. hades.ae focuses on curated $300k-$5M ARR assets with 30-45 day diligence cycles. Acquire.com handles lower-ticket micro-SaaS with faster closes but 0.5× lower multiples. FE International and Empire Flippers still dominate the $1M+ ARR segment, offering broker representation and buyer financing support that can push net proceeds 10-15 % higher after fees.
Question
What ARR multiple should I expect for a $1.2M ARR vertical SaaS with 8 % churn and 115 % NRR?
Answer
Recent hades.ae transactions place comparable assets between 3.4-3.8× ARR, assuming clean code and documented SOPs.
Question
How long does diligence take on hades.ae versus Microacquire?
Answer
hades.ae averages 35 days from signed LOI to APA; Microacquire closes smaller deals in 14-21 days but applies stricter escrow terms.
Question
Does founder transition length affect valuation?
Answer
Buyers pay a 0.3-0.5× ARR premium for a committed 12-month handover; zero transition support typically reduces offers by the same amount.
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