Validating demand and product fit in related markets
Background
- The UK market leader in providing software as a service (SaaS) to the Hospitality sector had identified an exit opportunity within 18 months and wanted to maximise its valuation
- The Care Homes sector was identified as an overlapping market with similar characteristics
- It wanted to validate quickly whether to invest resources into the market or maintain a focus on the existing core markets
Collaboration
- Desk research into the structure of the market and its leading companies
- Leveraged networks through the Healthcare division of major commercial banks and the M&A unit of a top-5 accountancy firm that gave us access to senior decision makers in the top Care Home groups
- Identified that one of the top groups would be in the market for our client’s solution. Engineered access to the Request For Proposal (RFP)
Results
- Ultimately our client was not selected as the winner of the RFP because the Care Home group required functionality that went beyond our client’s current roadmap
- Our client understood the functional gap between the current product and the Care Home market’s requirements
- The client decided that investing in closing this gap would not be an effective use of resource at this stage
