Is Your Product Strategy Sabotaging Your Company’s Valuation?
What’s your company’s weakest link?
I’ve seen two separate companies this year face a harsh reality. What they thought was their “secret weapon” for securing a high valuation turned out to be their Achilles’ heel.
And it all unfolded in just a few short months.
Both companies believed they had strong intellectual property rights (IPR) and a market-leading product — one in automotive software and the other in EdTech.
However, each business was overly reliant on their flagship product for the majority of their revenue. Their niches have started to be disrupted by VC-backed entrants with superior solutions, and this trend is still unfolding.
While revenue hasn’t been significantly impacted yet, the valuation of each business has already taken a substantial hit. Both recently received independent valuations, which is puzzling since market disruption isn’t exactly a rare event.
Why leave money on the table when it comes to your valuation? A robust product strategy can make all the difference between an average exit and an exceptional one.
#ExitLaunchpad #M&A #ProductStrategy #Valuation
