We assessed the target’s resilience
- Its capacity to maintain a year-on-year double-digit growth;
- Its ability to increase revenue from its existing SMB customer base by cross selling with new products;
- The existence of a clear scalability of its model, since the solution manages sensitive payroll files and must mobilize customer support to avoid any error, which impacts gross margin.
In validating the target’s ability to grow at scale
and its level of profitability
, we helped our client confirm its investment thesis.