By using the Hybrid Growth Diligence approach, we helped our client in better understanding the numbers at stake and validating the resilience of the target’s business model by testing:
- The company’s product market fit, by analyzing sales traction since inception;
- The platform’s MRR level, basis of valuation, requiring an analytical perspective and clear understanding of the contractual terms governing customer contracts and of the sophisticated policy around usage;
- The existence of a clear scalability of its model through recalculation of gross margin levels, to ensure the company’s ability to scale.
In validating the target’s product market fit
and the absence of any deal-breaking items
, we helped our client confirm its investment thesis.