Sell My Subscription Business – AI-Powered Brokerage & Valuation
Thinking of an exit? Get a data-driven valuation, a buyer-ready package, and a confidential process designed for subscription founders.
How Much Is My Subscription Business Worth?
Short answer: Valuation ≈ ARR/Recurring revenue × market multiple, adjusted for growth, retention (churn/NRR), unit economics (LTV:CAC, payback), margins, customer/channel concentration, contracts, and operational risk.
Valuation, in brief (5 steps)
- Choose method: revenue multiple (common for subscription businesses) or EBITDA/SDE for smaller, mature firms.
- Normalise metrics: ARR/MRR, GAAP revenue, gross margin, NRR, churn, LTV:CAC, payback.
- Benchmark with comps: size band, growth, category, AOV/ACV, B2C vs B2B, billing terms.
- Adjust for risk: concentration, contract assignability, IP/brand, data/privacy posture, supplier/platform dependence.
- Run scenarios: base / upside / de‑risked, then set a defensible range for negotiations.
Subscription Valuation Multiples in 2025 (Indicative)
Ranges vary by size, quality, and buyer type. Treat these as directional bands, not guarantees.
| Profile | Basis | Indicative Range* |
|---|---|---|
| Owner-operated, sub-$2m revenue | SDE multiple | ~2.0×–3.5× SDE |
| $2m–$10m ARR/recurring revenue, steady growth | ARR/Revenue multiple | ~1.2×–3.0× ARR/Rev |
| $10m+ ARR/recurring revenue, strong metrics | ARR/Revenue multiple | ~2.5×–5.0× ARR/Rev |
*Illustrative bands only; actual outcomes depend on growth, retention quality, margins, risk, buyer type, and market conditions.
How We Value Subscription Businesses: MRR/ARR, Churn, NRR, LTV:CAC
| Driver | Strong Signal | Effect on Multiple |
|---|---|---|
| ARR Growth | Consistent QoQ growth with pipeline coverage | Higher (durability of growth) |
| Retention / NRR | Low logo churn; NRR ≥ 105% | Higher (expansion/upsell offsets churn) |
| Unit Economics | LTV:CAC ≥ 3:1; payback < 12 months | Higher (efficient growth) |
| Gross Margin | ≥ 60% with predictable COGS/fulfilment | Higher (profit potential) |
| Concentration Risk | No customer > 10% revenue; diversified channels/suppliers | Higher (lower revenue/operational risk) |
| Contracts & IP/Brand | Assignable customer terms; solid supplier contracts; clean IP/brand; DPAs | Higher (smoother diligence) |
SDE vs EBITDA for Subscription Businesses: Which One Matters?
Smaller, owner‑operated subscription companies are often priced on SDE (profit + reasonable owner compensation + normalised add‑backs). Larger teams trend to EBITDA or revenue multiples. We compute both and align to the buyer pool.
How our AI model improves the valuation
- Maps your metrics to live deal/comparable bands (category, size, growth, retention; box/media/membership/B2B subscription).
- Runs sensitivity on churn, payback, and margin/fulfilment improvements to show multiple uplift.
- Ranks buyer fit (strategic vs financial) to indicate likely price/structure scenarios.
What to prepare (faster valuation)
- Last 24 months P&L + balance sheet; MRR/ARR bridge (new, expansion, contraction, churn).
- Cohort/retention exports; churn reasons (voluntary/involuntary) & dunning, refunds/returns.
- Revenue by product/segment, AOV/ACV bands, billing terms (monthly/annual/pre‑pay).
- Top 20 customers with % of revenue; supplier/platform dependence notes.
- Contracts/IP checklist: assignability, DPAs, licences, security/privacy certifications.
Quick answers:
Are subscription businesses valued on revenue or profit? Often revenue (ARR/recurring) for growth models; EBITDA/SDE more for smaller, slower‑growth or owner‑operated firms.
Does the Rule of 40 matter? Efficiency and growth balance influence multiples; buyers also weight growth durability and retention quality.
What improves my multiple fastest? Better retention/churn, quicker CAC payback, cleaner contracts/IP, reduced customer/supplier/platform concentration.