What’s your company’s weakest link?
Because I’ve seen two separate companies this year get a nasty shock.
What they thought was their “secret weapon” when it came to a punchy valuation, actually turned out to be exactly the opposite.
And it all unfolded in a few short months.
Both companies believed they had strong IPR and a market-leading product.
(One was in automotive software and the other was in EdTech).
But each business was far too dependent on their flagship product for the majority of their revenue.
Their respective niches have started to be disrupted by VC-backed entrants with a much better solution – and this is still playing out.
Revenue has not been significantly impacted for either – so far.
But the valuation of each business has already taken a big hit… and both recently received an independent valuation.
Which is a bit baffling as market disruption is not exactly a black swan event 🙂
Why leave money on the table when it comes to a valuation? A robust product strategy can make all the difference between an average and an exceptional exit.
#exitlaunchpad #m&a #productstrategy #valuation