BuyingUpdated March 2026·13 min read

SaaS acquisition due diligence checklist

A 47-item due diligence checklist for buying a SaaS business — financial, technical, legal, customer, and AI-specific.

Primary keyword
SaaS due diligence checklist
Search intent
Buyer under LOI needs a complete diligence checklist.
TL;DR
  • Financial reconciliation is 60% of the value of diligence. Do it first.
  • Every red flag either becomes a price cut or a deal-killer — nothing in between.
  • AI products need six extra items on the checklist (see below).

Financial (14 items)

24 months P&L reconciled to Stripe. Cohort retention by month. Refund and chargeback rate. Discount codes and effect on ARPU. Free-plan-to-paid conversion. Deferred revenue at close. Recurring vs one-off breakdown.

Technical (12 items)

Dependency audit, security scan, uptime last 12 months, backup/DR plan, incident log, deploy pipeline demo, secrets inventory, hosting bills for last 6 months.

AI-specific (6 items)

Inference cost per active user. Model provider contracts. Rate-limit exposure. Eval suite. Prompt/version control. Data-training rights on customer inputs.

FAQs

How long should diligence take?

2–4 weeks for micro-SaaS, 4–8 weeks for mid-market. Longer than that and momentum dies.

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