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Before you buy a SaaS business, answer this: how much of the reported revenue will survive the first 12 months after close? Most buyers discover the answer only after they've wired the money. This free tool walks through six dimensions of buyer-side risk — churn, concentration, revenue quality, decay projection, operations, and contract health — computed from your raw CSV upload in minutes, not days.

TL;DR

This buyer-side risk assessment covers six dimensions: churn risk (logo + revenue churn vs benchmarks), concentration (HHI + top-5 share), revenue quality (RQS composite), decay projection (12-month organic MRR forecast), operational risk (involuntary churn, dunning), and contract health (annual vs monthly mix, auto-renewal rates). Upload a CSV and get all six analyses in minutes.

What the Assessment Covers

📉
Churn Risk
Gross & net logo churn, revenue churn, cohort decay, churn velocity
⚠️
Concentration
HHI, top-5 share, plan tier risk, geo/vertical concentration
💰
Revenue Quality
RQS composite score, retention stability, payment hygiene
🔄
Decay Projection
MRR trend analysis, contraction rate, churn-adjusted 12mo forecast
⚙️
Operational
Involuntary churn, billing hygiene, dunning success rate
📜
Contract Health
Annual vs monthly mix, auto-renewal rate, contract duration distribution

How It Works

  1. Export a CSV from the target's billing system (Stripe, Chargebee, Recurly, or any system that can produce a subscription history with customer ID, date, amount, and status).
  2. Upload it to ChurnLens — the tool accepts standard subscription export formats and auto-detects the column mapping.
  3. Get the report — within minutes, ChurnLens produces a buyer-side risk report with all six assessment dimensions, benchmark comparisons, and a recommended action for the deal.

Who Uses This

Example: Red Flags the Assessment Catches

Here are three real signals ChurnLens flagged in recent uploads:

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Related Resources

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Frequently Asked Questions

What is hidden churn in a SaaS acquisition?

Hidden churn is revenue decay that headline metrics conceal: customers on annual plans who have already stopped using the product, paid accounts sitting inactive, or revenue concentrated in a few logos about to leave. A SaaS business can show flat MRR while its real retention is collapsing. ChurnLens surfaces these signals before you buy, so you price the deal on true revenue quality.

How does ChurnLens score revenue quality?

ChurnLens analyzes five dimensions: revenue concentration, logo retention, annual-plan churn risk, inactive paid accounts, and MRR decline patterns. Each is weighted into a single 0-100 revenue-quality score benchmarked against comparable SaaS businesses. The score tells an acquirer whether reported MRR is durable or propped up by customers who are one renewal away from leaving, all before the deal closes.

Why do SaaS acquirers need due diligence on churn?

Purchase price is usually a multiple of recurring revenue, so overstated retention directly inflates what you pay. A business with 20% hidden annual-plan churn is worth far less than its MRR implies. Buyers who skip churn diligence discover the decay only after closing, when it is too late to renegotiate. ChurnLens gives that visibility during the evaluation window instead.

What red flags should I check before buying a SaaS business?

Watch for revenue concentrated in a handful of accounts, a widening gap between signups and active users, annual contracts that never renew, and MRR that grows only through discounting. Each pattern signals fragile revenue. ChurnLens automatically flags these red flags from uploaded revenue data and ranks them by how much they threaten the durability of the recurring revenue base.

Key facts
Risk dimensions scored5
Revenue-quality score range0-100
Built forAcquirers, PE, founders

Key terms, defined

Revenue concentration
The share of total revenue coming from the largest customers — high concentration is a churn and valuation risk.
Logo retention
The percentage of customers (logos) retained over a period, independent of expansion revenue.
Net revenue retention (NRR)
Revenue retained from existing customers including expansion and contraction, expressed as a percentage.

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80%
Overpay for Churn
4.2×
Real vs Reported
$340K
Avg Overpayment
23
Audit Checklist Points

The seller's churn number is almost always wrong. Upload the CSV and find out before you wire.

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🛡️ Free Starter tier: 1 CSV analysis per month. No credit card. Verify a seller's churn claims before you commit.

· · Published 2026-01-15