The iMerge Private SaaS Index
The definitive valuation benchmark for lower-middle market software companies ($5M – $50M ARR).
Q1 2026 Valuation Report
The Return to Efficiency
Private SaaS multiples have stabilized at 4.0x – 5.5x ARR. Our latest data reveals a massive bifurcation in the market: companies passing the “Rule of 40” are trading at double the valuation of their peers.
- Median ARR Multiple: 4.5x
- Top Quartile (High NRR): 6.5x+
- Key Driver: Retention > Growth
Our Methodology
Most valuation data tracks “Unicorns” and public stocks. We track the reality of the private market using a triangulated approach.
1. Private Deal Flow
We analyze anonymized data from active LOIs and closed transactions within the boutique advisory space to determine what buyers are actually paying today.
2. Lending Caps
We incorporate valuation cap data from non-dilutive capital providers (like SaaS Capital) to establish the “floor” valuation for recurring revenue assets.
3. The Illiquidity Discount
We apply a proprietary discount model (typically 30-40%) to public SaaS indices (SEG/Bessemer) to correct for the liquidity risks inherent in private M&A.
Historical Reports
Q2 2026 Private SaaS Valuation Report