Curious how a market test can help you refine your exit strategy and get real buyer feedback — without committing to a full process? In this case study, we take you inside a $10M ARR SaaS market test to show how founders can gain clarity and shape a stronger exit plan.
Figuring out the right time to sell your business is one of the hardest decisions a founder can face. Especially when the market feels murky, and the data doesn’t tell the full story. The challenge is: how do you get real insights without committing to a full process?
That’s where a market test can be incredibly useful — a way to gather real-world buyer feedback without launching a formal process.
While market data and internal performance analysis provide valuable benchmarks, they often fall short of capturing the nuances buyers care about — especially under $50M ARR, where valuations are less formulaic. Direct conversations with buyers reveal real-time appetite, validate assumptions, and surface practical concerns that pure data can’t uncover, enabling founders to tailor their strategy with precision.
💡 While market data and internal performance analysis provide valuable benchmarks, they often fall short of capturing the nuances buyers care about — especially under $50M ARR, where valuations are less formulaic. Direct conversations with buyers reveal real-time appetite, validate assumptions, and surface practical concerns that pure data can’t uncover, enabling founders to tailor their strategy with precision.
In this article, we’re sharing a behind-the-scenes look at a recent market test run by our team: what we heard, what the founders did next, and why they’re better positioned to approach their exit strategy with confidence.
Case Study Overview
Business profile: Martech SaaS business with over $10M in ARR, solid growth and strong margins. The founders weren’t looking to run a process — they were focused on growth — but they had a rough number in mind that might prompt them to explore an exit.
Challenge: They didn’t know how close they were to that number, or how the business would actually be perceived by buyers. They also didn’t want to get distracted from execution or signal anything prematurely to the market.
That’s exactly the kind of situation where a market test can be most useful. It offers a way to explore real appetite and valuation dynamics — discreetly — and get ahead of potential red flags, without needing to commit to a sale.
Inside a market test: How it works
We reach out to a small, carefully selected group of private equity firms and strategic buyers who are well aligned with the company’s sector. Thanks to strong relationships and an active network, we can engage the right buyers quickly and efficiently, gathering focused feedback within a few weeks — with almost no involvement required from the founders.
The conversations remain confidential and anonymous and do not require producing any materials.
This approach gives founders clear, practical insights, including:
- How buyers perceive the business’s strengths and weaknesses
- The valuation range different buyers might consider reasonable today
- The key factors that drive or limit achieving the target price
- A realistic sense of how the company would fit into a competitive process
Above all, market tests offer clarity without any obligation or commitment.
Real market feedback
The feedback from buyers was largely positive, indicating there could even be an opportunity to exit now — though likely not at the founders’ target valuation. Crucially, a recurring concern around the company’s retention profile surfaced, with several buyers highlighting it as difficult to underwrite.
In the process, we garnered feedback from 10+ parties. Here’s a sample of what we heard:
Buyer A: “Impressive growth, but the gross retention profile makes it hard for us to get comfortable. We typically focus on 85%+ gross revenue retention across our martech portfolio.”
Buyer B: “There’s a case for 5–6x ARR today. But to get to 8–9x, you’d need lower churn and a strong case for defensibility.”
This kind of specific, actionable feedback is exactly what our market tests are designed to uncover. Most founders only get these insights once they’re already in a formal process—by which point it’s often too late to course-correct. Here, the founders were able to identify actionable steps that could raise their valuation and expand buyer interest.
From insights to Actions
The market test helped the founders establish a clearer timeline and immediately begin focusing on targeted improvements, including:
- Updating churn reporting to provide more accurate, actionable insights, including refined cohort analysis.
- Enhancing onboarding and customer success efforts to reduce churn.
- Investing in initiatives to increase product stickiness and strengthen switching costs.
Freed from the pressure of an active sale process, the founders could act deliberately and strategically — positioning themselves for a stronger exit when the time is right.
Is a Market Test Right for You?
If you’re curious about exit options but not ready to commit, a market test can help. It offers discreet, real buyer feedback to clarify valuation, uncover blind spots, and build relationships – all without disrupting growth.
If that sounds like you, we’re happy to talk!
At Nextoria, we’re committed to a flexible, founder-first approach that meets you where you are. We don’t wait until everything’s perfect before getting involved. Whether you’re months or years away from an exit, our job is to help you understand your options, identify what might hold you back, and get clarity on what a great outcome could look like.
