SaaS Due Diligence Checklist: Revenue Quality

TL;DR: A thorough SaaS diligence process examines revenue quality across 5 dimensions: (1) Revenue concentration — how dependent is the business on top customers? (2) Logo retention — are customers sticking around? (3) Churn segmentation — is churn concentrated in specific cohorts? (4) Inactive accounts — how much MRR is zombie revenue? (5) MRR trajectory — is growth accelerating or decelerating?.

Full Guide

A thorough SaaS diligence process examines revenue quality across 5 dimensions: (1) Revenue concentration — how dependent is the business on top customers? (2) Logo retention — are customers sticking around? (3) Churn segmentation — is churn concentrated in specific cohorts? (4) Inactive accounts — how much MRR is zombie revenue? (5) MRR trajectory — is growth accelerating or decelerating?

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FAQ

Is this guide applicable to my situation?

These guides are designed for SaaS acquirers, PE analysts, and founders preparing for exit. The frameworks apply across B2B and B2C SaaS, at deal sizes from $500K to $50M+.