How are SaaS businesses valued for litigation in the UK?

SaaS and subscription businesses are typically valued using revenue multiples (EV/ARR) or DCF based on projected recurring revenue. Expert witnesses analyse churn rates, net revenue retention, customer acquisition costs, and the durability of recurring revenue - all of which affect the appropriate multiple or growth assumption.

What disputes commonly arise in technology company valuations?

Technology valuation disputes arise in shareholder disputes (where co-founders disagree on company value); M&A warranty claims (where ARR was misrepresented); divorce proceedings (where a technology business is a matrimonial asset); and HMRC share option disputes (EMI scheme valuations).

Technology & SaaS Business Valuation Expert Witness UK

Technology and SaaS businesses present distinct valuation challenges in UK litigation: recurring revenue quality, churn and net revenue retention, customer acquisition costs, and the durability of subscription income all drive whether ARR multiples or DCF is appropriate.

Expert witnesses analyse revenue recognition policies, option pool dilution, and IP-heavy balance sheets where intangible assets dominate. Disputes arise in shareholder conflicts between co-founders, M&A warranty claims where ARR was misrepresented, matrimonial cases, and HMRC employment-related securities valuations.

UK courts do not mandate a single method - experts must justify assumptions on growth rates, WACC, and terminal value, which are frequently contested between party-appointed experts.

Indicative UK sector valuation benchmarks (litigation reference)
Sector / asset	Typical multiple / basis	Notes
SaaS / subscription	EV/ARR 3×–8×+ (stage-dependent)	Churn, NRR, and revenue quality drive range in litigation
Growth tech (DCF)	DCF-led; WACC and terminal value heavily contested	Party experts often disagree on forecast assumptions

Indicative ranges from published transaction surveys and expert witness practice; case-specific evidence required for court.

Common questions

How are SaaS businesses valued for litigation in the UK?: SaaS and subscription businesses are typically valued using revenue multiples (EV/ARR) or DCF based on projected recurring revenue. Expert witnesses analyse churn rates, net revenue retention, customer acquisition costs, and the durability of recurring revenue - all of which affect the appropriate multiple or growth assumption.
What disputes commonly arise in technology company valuations?: Technology valuation disputes arise in shareholder disputes (where co-founders disagree on company value); M&A warranty claims (where ARR was misrepresented); divorce proceedings (where a technology business is a matrimonial asset); and HMRC share option disputes (EMI scheme valuations).

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