SaaS Due Diligence: Metrics that Matter
Master SaaS due diligence with a focus on key metrics. Learn how to evaluate MRR, churn, NRR, cohorts, gross margin, and CAC payback to make informed acquisition decisions.
## What SaaS DD actually looks like in 2026 The most common mistake a generalist buyer makes when looking at a SaaS target for the first time: applying the playbook of a non-SaaS deal and trying to anchor on EBITDA. EBITDA is the wrong starting point for a SaaS business. The right starting point is the cohort: how does a customer acquired in Q1 2023 perform two years later, in terms of retention, expansion, and gross profit contribution? Everything else flows from that. In SaaS DD on a $5M to $50M ARR business, a typical engagement runs 6 to 10 weeks and combines a financial QoE (handled by fi…