By using the Hybrid Growth Diligence approach, we validated the resilience of the target’s business model by testing:
- The company’s product market fit in analyzing historical month-on-month revenue growth;
- Its ability to convert Enterprise customers in addition to SMBs, which confirms its ability to scale further and opens the door to upsell opportunities;
- The existence of clear scalability and profitability potentials by validating the gross margin profile, stripped of consulting costs.
In validating the target’s
product market fit and the
absence of any deal-breaking items, we helped our client confirm its investment thesis in the company.