What happens if my company pivots or changes business model?

Full Explanation

Pivots create challenges for intangible asset valuation. Example: company pivots from B2B SaaS to consumer marketplace. The intellectual property (technology) may transfer; customer relationships are largely worthless (different customer base); brand value depends on whether the brand transfers. Opagio approach: create a new valuation reflecting the post-pivot business. Inputs change: revenue model shifts (subscription to take rate), customer concentration risk evolves, technology's competitive advantage may decrease or increase depending on the new market. Don't try to preserve a pre-pivot valuation: advisors and investors will see through it immediately and lose confidence. Instead: quantify the transition fairly. If technology is highly relevant post-pivot, its value may increase. If customer base is irrelevant, write it down. The pivot also affects intangible asset allocation: what % of value comes from technology, what % from market position, what % from team? Post-pivot, allocations typically shift. For founders, if you're planning a pivot and considering fundraising, get a fresh valuation post-pivot: it demonstrates honesty and clarity about the new business model. Where the method is unchanged, the Asset Valuator in Opagio Intangibles can pre-fill the form from an asset's last saved valuation, so re-valuing means changing the assumptions the pivot affects.

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