Understand what the AppsWorth Score covers
The 0–100 score combines financial quality (25 points), growth (20), retention (20), customer diversification (10), founder independence (15) and maturity (10). It is a summary of entered business characteristics, not a diligence certification or probability of completing a sale.
There is no single score that proves a business is ready to transfer. The model does not inspect software ownership, security practices, contracts, tax records or technical debt. Keep those reviews alongside the score rather than assuming they are included.
Use the Value Leaks as an investigation list
| Trigger | Evidence to examine |
|---|---|
| Monthly churn above 4% | Cohort trends, cancellations and recurring support problems |
| Founder workload above 20 hours/week | Task log, runbooks and handover tests |
| Largest customer above 20% of revenue | Renewal exposure and customer-level revenue mix |
| Business age below 18 months | Available operating history and consistency |
| Annual growth below 5% | Acquisition and retention trends behind the slowdown |
| Primary channel is Paid ads | Channel dependence and measured alternatives |
The output shows up to five leaks in the model’s fixed order. A sixth qualifying leak may therefore be absent from the displayed list. The triggers are model rules, not universal standards for all SaaS businesses.
A practical founder-dependency example
Use the fictional micro SaaS inputs: $3,000 MRR, $2,000 monthly operating profit, 10% annual growth, 4% churn, 100 paying customers, a largest customer at 12%, 25 founder hours per week, 20 months of history, B2B and Organic acquisition. Its annual profit is $24,000 and central multiple is 2.20×, giving $45,600–$60,000.
Moving workload to 15 hours while holding profit fixed changes the central multiple to 2.35× and the range to $49,200–$63,600. Treat that as a conditional calculation. The micro SaaS walkthrough also shows how delegation costs can reduce profit and offset the modeled benefit.
Prepare an evidence folder
- Financial consistency: reconcile billing, recurring revenue and operating expenses over the same periods.
- Customer durability: explain churn, renewals and concentration with records rather than a single headline metric.
- Operating handover: document support, deployments, backups and recurring tasks, then test the instructions.
- Dependencies: list important vendors, accounts, licenses and relationships for a separate transfer review.
- Improvement log: record what you changed, what it cost and the measured outcome before rerunning the calculator.
These preparation steps are broader than the scoring system. AppsWorth does not award hidden points for completing this checklist, and it does not verify documents you keep outside the product.
Read the improvement scenario carefully
Current scenario targets are 3% churn, 15 founder hours per week, 15% largest-customer share, 10% annual growth and a Mixed acquisition channel, applied only when their corresponding weak inputs qualify. The scenario does not advance business age. It can adjust multiple inputs even though the response displays only the first three modeled actions.
Should I fix every flagged issue before a sale?
The calculator cannot make that decision. Compare the cost, feasibility and evidence for each proposed change. Start with a concrete risk you can measure and explain, then use the valuation workflow to keep the assumptions visible.
Does no Value Leak mean no risk?
No. The list is limited to selected rules and self-reported inputs. It does not replace broader business, financial, technical or legal review.
AppsWorth estimates are informational, not formal appraisals, investment advice or guaranteed transaction prices.