Revenue that renews automatically is exciting, but the SaaS deals that hold their value best have annual churn below 5% and a team that ships updates without the founder in the loop.
Rejigg lists 137 cloud software businesses for sale. The median asking price is $2.0M. 13 of them were listed in the last 30 days. The states with the most cloud software listings are California with 18 listings, New York with 11, and Texas with 11.
What to know about buying a cloud software business
How cloud software businesses are valued
Asking prices are set as a multiple of earnings: 3x–8x annual profit, depending on recurring revenue, retention, and team independence.
Where you land in that range depends on how much of your revenue renews automatically, how long customers stay, and how much the business runs without you.
Customers who stay and expand their usage
Very few customers leaving
Revenue spread across many customers
A product customers use every day
Technology costs that stay manageable
What buyers of cloud software businesses look for
Investment firms building a portfolio of software companies
Larger software companies looking to expand into your market or customer base
Individual operators with technical or industry backgrounds who want to own a business
Platform companies looking to add your product to their existing suite
The first questions buyers ask:
ARR Truth. What counts as ARR in your reporting, and can you tie it back to your billing system?
Retention Drivers. Do your retention numbers mean what buyers think they mean, and what’s driving net revenue retention?
Renewal System. Are renewals actually predictable, or do they slip until the last minute?
Closed deals
Rejigg cloud software deals closed
Across 42 closed deals on Rejigg, the median time from first pitch to close is 177.5 days.
Practical guidance from hundreds of real acquisition conversations.
Subscription Revenue Quality
Ask to see subscription revenue tied to actual billing records and reconciled against the financial statements.
The number buyers care about is annual recurring revenue that renews predictably, not a headline that includes one-time setup fees or consulting work bundled in.
Verifying that the numbers match across billing records, accounting software, and tax returns is the most important step in SaaS due diligence.
Churn Rate and Customer Tenure
Find out how many customers have cancelled in each of the last three to five years and why.
SaaS businesses where nearly no customers leave voluntarily prove the product is genuinely embedded in how customers work, not just something they haven't gotten around to cancelling.
Average customer tenures of five or more years combined with low annual churn tell a compelling story about the durability of the revenue.
Team Independence
Ask how the engineering team handles product updates and whether they ship changes without the founder reviewing every decision.
A team that operates independently in development, support, and customer success is one of the clearest signals that the business is genuinely mature.
If the founder is deeply embedded in technical decisions or key customer escalations, think through what role you'd be stepping into.
Technology Infrastructure Costs
Get a breakdown of hosting, infrastructure, and third-party tool costs as a percentage of revenue, and understand how that relationship has changed over time.
Cloud businesses where technology costs stay well below 20% of revenue as the business grows have a genuinely scalable economics picture.
If infrastructure costs are growing faster than revenue, that's worth understanding and getting comfortable with before committing to a price.
Valuation
What Should You Expect to Pay?
3x-5x
SDE
Owner-operated with founder still in product decisions
5x-8x
EBITDA
With independent engineering and support team
In cloud software, the spread between 3x and 8x reflects how much revenue is genuinely recurring, how low the churn rate is, and how independently the team handles product, support, and customer relationships.
What drives a premium
Annual churn below 5% with customers who naturally expand usage over time
Subscription revenue fully reconciled against billing records with no material one-time revenue mixed in
Engineering and support team operating independently from the founder
Technology costs below 20% of revenue with a model that improves as the business scales
How do I contact the owner of a business I found on Rejigg?
Create a free Rejigg account; owners, and the brokers who run some sales, only hear from buyers through the platform. Open the listing to see the full profile: city, team size, financials, what is for sale, and the reason for selling. Sign Rejigg's standard Fee & Confidentiality Agreement for that business; it is the same form for every deal. Verify your phone, then send your pitch from the listing. Replies, meetings, and documents all run through Rejigg.
Can I email Rejigg to get introduced to an owner?
No. Rejigg does not forward emails to owners or brokers, so a note to support@ or hello@ with a listing link will not reach them. Create a free account, open the listing, sign the agreement for that business, verify your phone, and send your pitch; that reaches them in a few minutes.
What counts as ARR in your reporting, and can you tie it back to your billing system?
Buyers are checking whether your headline ARR is real, repeatable, and easy to audit. They want Stripe or your billing tool, invoices, credits, refunds, collections, and your reported ARR to line up without hand-wavy spreadsheet math. If ARR means different things in different places, they usually slow the deal down and protect themselves on price or terms.
Do your retention numbers mean what buyers think they mean, and what’s driving net revenue retention?
Buyers are trying to understand whether customers stick around because the product is truly embedded, or because your team keeps saving accounts at the last minute. They will look at retention by cohort, downgrade patterns, and whether expansion is coming from healthy adoption or a few big accounts swelling. Averages can hide problems. Cohorts show the truth over time.
Are renewals actually predictable, or do they slip until the last minute?
Buyers want to see recurring revenue run like a process, not a series of rescues every quarter. They look for clear ownership, a consistent timeline, and renewal risk that is spread out rather than stacked into one scary month. If you keep renewing in the final week, they assume hidden churn risk, even if your historical churn looks fine.
Are there any side letters, non-standard terms, or handshake promises tied to key accounts?
This question is about unpleasant surprises hiding in “special” customer deals. Buyers are looking for extra support promises, custom build commitments, odd refund language, and termination terms that make revenue less durable than it looks. They also want to know whether auto-renew works in practice, or whether every renewal reopens the full negotiation. One messy top-customer contract can change price, escrow, or structure.
Is your revenue truly SaaS, or is a chunk of it really services wearing a subscription hat?
Buyers are fine with services revenue. They just value it differently because it scales with people, not software. If the “subscription” quietly includes custom reporting, unpaid implementation, or ongoing admin work, your margins and growth story are usually weaker than the P&L suggests.
What drives hosting costs, and where are the margin cliffs as usage grows?
Cloud COGS often surprises buyers because the cost drivers can be scattered across compute, data storage, logging, data egress, and third-party APIs. They want to know whether growth improves margins, holds steady, or gets worse as customers use the product more. They also care about spike risk, like one enterprise customer tripling usage in a week.