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Technology · ARR 3×–8×

Sell Your SaaS or Tech Business in Canada

SaaS and technology businesses are location-independent, valued on recurring revenue metrics, and attract the widest buyer pool of any SMB category — from strategic acquirers seeking product capabilities to search funds and PE platforms seeking cash-flow. Churn rate, ARR growth, and CAC:LTV are the numbers that determine your valuation.

Deal Economics

ARR Range (typical SMB SaaS)$200,000 – $2M+
Typical Multiple3× – 8× ARR (under $1M ARR)
SDE-Based Alternative4× – 7× SDE for non-SaaS tech
Key MetricNet Revenue Retention & Churn

What Moves the Multiple Up

  • Net Revenue Retention (NRR) above 100% — expansion MRR outpacing churn
  • Monthly churn below 1.5% (annual churn below 18%)
  • Documented product roadmap and clear competitive moat
  • Team in place — not just a founder-operated codebase
  • Clean cap table and no IP ownership disputes

Who Buys Canadian SaaS Businesses

Strategic Acquirers

Larger software companies seeking product capabilities, customer base, or market entry. Often pay the highest multiples — but require clean IP, a stable team, and a clear integration story.

Search Funds & ETA Buyers

Entrepreneurship-through-acquisition (ETA) buyers, often MBA-backed, seek profitable, owner-operated SaaS and technology businesses with clear management succession.

PE & Roll-Up Platforms

Private equity firms and vertical SaaS roll-ups acquiring multiple SMB software companies in a single niche. Speed and standardised diligence are their hallmark.

Due Diligence Checklist

MRR/ARR cohort data — monthly for 24+ months
Churn analysis by customer segment and plan tier
CAC and LTV by acquisition channel
Codebase documentation and IP ownership confirmation (no contractor-owned code)
Key employee agreements and retention plan for post-close
Infrastructure costs and scalability analysis (AWS/GCP/Azure spend vs revenue)

Our Fees

$7,500 non-refundable engagement fee, credited at close. Reverse Lehman — minimum $25,000.

10%

First $1M

8%

$1M – $2M

6%

$2M – $3M

4%

Above $3M

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