What Metrics Matter Most When Buying a SaaS Business for Sale?

[arclion]

I’ve been browsing marketplaces like Acquire and Flippa looking for a saas business for sale in the B2B productivity niche. I've found a few promising candidates, but I’m struggling to verify the quality of the recurring revenue. When you are looking at a saas business for sale, how much weight do you give to "Gross Churn" versus "Net Revenue Retention"?
I want to make sure the saas business for sale I eventually acquire has a sustainable LTV to CAC ratio (ideally 3:1 or better). Additionally, what is the best way to perform technical due diligence on the codebase? I’m worried about buying a product that looks great on the surface but is built on a "spaghetti code" foundation that will be impossible to scale. Are there specific questions I should ask the seller regarding their "founder-led" sales vs. organic growth?

 

[Matt]

I’d weigh NRR more than gross churn if existing customers expand, that’s a healthy signal. For safety, do a quick code review (docs, tests, deployment) and ask how much revenue depends on the founder selling vs organic growth—that part really matters long-term.

 

[Rolf]

When buying a SaaS business, the most important metrics include Monthly Recurring Revenue (MRR), churn rate, customer acquisition cost (CAC), lifetime value (LTV), growth rate, and gross margin. Evaluating these ensures the business is profitable, scalable, and sustainable, helping buyers make informed decisions about long-term value and investment potential.