A micro-SaaS is judged first on the quality of its recurring revenue, not only on its size. A buyer looks at MRR, churn, customer concentration and how much the business depends on its founder. Preparing these elements before a sale improves the discussion and reduces unpleasant surprises.
MRR: a figure that must be clean and verifiable
MRR, monthly recurring revenue, should be reconstructable from your payment records. Separate real subscriptions from one-off revenue, temporary discounts and trials.
Buyers value a readable history. Steady growth often matters more than a recent spike, because it signals that acquisition is sound.
- Monthly revenue history consistent with bank statements
- A clear split between recurring and one-off income
- Breakdown by plan and by commitment length
- Clear treatment of refunds and failed payments
Churn: the signal of customer loyalty
Churn measures customers or revenue lost over a period. Low and stable churn points to a genuinely useful product, while high churn calls for a cautious valuation.
Analyse it by cohort and segment. Explain the known reasons for leaving: customer closed down, price, missing feature. An honest explanation beats a flattering number.
Dependencies that lower the value
The most common risks are concentration on a few customers, reliance on a single acquisition channel, a critical third-party API and knowledge locked in the founder's head. Each can justify a discount or transfer conditions.
Reducing them before the sale is often more profitable than defending your price during negotiation.
- One customer representing too large a share of revenue
- A single acquisition channel, such as one platform
- Third-party services with no realistic alternative
- No technical or operational documentation
Preparing the sale file
Assemble a simple file: metrics, architecture, accounts, customer contracts, ownership of code and domains. Check that you hold all the rights and access needed.
Also define the support you offer after the sale. A credible transition period reassures the buyer and can support the price. Get advice on local legal and tax aspects.
Frequently asked questions
How is a micro-SaaS valued?
Usually from a multiple of recurring revenue or profit, adjusted for churn, growth, dependencies and ease of handover. There is no universal formula.
Does high churn prevent a sale?
No, but it weighs on the price. Explaining the causes and showing credible corrective actions helps the buyer assess the risk.
What about dependence on the founder?
Document processes, automate repetitive tasks and plan a support period. The less the product depends on you, the easier it is to transfer.