Product Due Diligence focuses on evaluating a company’s product strategy, user experience, market positioning, and feature roadmap. In M&A or fundraising contexts, it ensures the product isn’t just technically solid—but also strategically viable, competitive, and aligned with user needs.

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Product Due Diligence is the systematic review of a company’s product from a market, user, and strategic perspective. It complements technical due diligence by answering different—but equally critical—questions, such as:

• Is the product solving a real, validated problem?
• Does it offer a differentiated value proposition?
• Is the UX aligned with target users’ expectations?
• Is the roadmap realistic and strategically aligned?

This review typically includes:

• Product-Market Fit Analysis: Market demand, retention, and adoption metrics
• UX/UI Review: User journey, usability, accessibility
• Roadmap Validation: Upcoming features vs. team capacity and business goals
• Competitive Benchmarking: Product positioning and differentiation
• Customer Feedback Analysis: From interviews, NPS, reviews, or support logs

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Product Due Diligence is essential because a technically sound product can still fail in the market if it lacks user alignment or strategic clarity.

Key reasons to include product DD in a deal process:

• Validates business assumptions: Is the solution solving the right problem?
• De-risks go-to-market plans: Understanding how the product will scale commercially
• Informs valuation: High-fit, high-retention products drive higher multiples
• Supports integration: Ensures product roadmap aligns with buyer’s platform strategy
• Reveals product risks: Such as feature bloat, tech lock-in, or dependency on one persona

For founders, it’s also a way to surface strengths and refine narratives before fundraising or exit.

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