Timing your exit is hard enough. Add a major product launch into the mix, and it becomes even more complex.
As founders, we’re wired to believe that the next big release — that feature set, integration, or new vertical — will unlock exponential value.
But in M&A? Timing isn’t just about potential. It’s about proof.
Should you sell now, before the launch, to avoid execution risk — or wait and try to capture the post-launch upside?
I’ve been on both sides of that question. When I exited Pepperjam to GSI Commerce, we were rolling out new service layers. We had confidence in the roadmap. But we also understood the buyer mindset: future plans don’t beat present results.
This article explores the strategic calculus founders must consider when deciding whether to exit before or after launching a major product.
The Temptation to Wait
Most founders assume the best move is to launch, prove traction, then sell at a higher valuation.
On paper, it makes sense:
- You validate demand
- You boost your revenue multiple
- You attract more buyers
- You tell a bigger growth story
But here’s the reality — execution takes time. And buyers discount promises. They pay for performance.
If you delay your exit hoping for hockey-stick growth, you may face:
- Delayed timelines
- Increased team burnout
- Capital constraints
- Market shifts that hurt your valuation window
- A buyer landscape that becomes more cautious
As I share in The Entrepreneur’s Exit Playbook (available here), the best exits are engineered based on timing the business and the market, not just the roadmap.
Buyer Psychology: What They’re Thinking
When buyers look at a business in the middle of a product rollout, here’s what’s going through their mind:
- Will the product launch on time and within budget?
- Will customers adopt it — or ignore it?
- Will the team stay focused — or get distracted?
- Is this founder trying to inflate valuation without backing it up?
Buyers don’t want to fund your launch — they want to acquire your traction.
This means your product launch is a risk unless:
- You’ve already signed early adopters
- You have a clear monetization strategy
- Your roadmap is tied to long-term demand
- Your team has experience executing under pressure
When It Does Make Sense to Sell Pre-Launch
1. You’ve Already De-Risked the Launch
If you’ve done alpha testing, pre-sold to anchor customers, or built on existing infrastructure, then buyers may see the product as a natural extension — not a gamble.
2. The Buyer Brings Distribution or Scale
If your launch is constrained by capital or reach, the right acquirer might be the one who unlocks the product’s potential faster than you can.
3. You’re Burned Out or Fundraising Has Stalled
Dragging a fatigued team into a high-stakes launch can backfire. Selling early may give the product — and your people — a better long-term home.
4. The Market Is Peaking
If M&A activity in your vertical is hot, and interest rates or economic indicators are trending the other way, timing becomes more important than innovation. Strike while there’s demand.
When You Should Wait
1. You Have Strong Internal Execution Capacity
If your team is energized, funded, and focused — and you have six months of runway — launching may make sense.
2. You’re Entering a High-Multiple Category
If your new product pushes you into a space with significantly higher comps (e.g., recurring SaaS, AI-enabled tooling), the risk may be worth the reward — if you can prove adoption quickly.
3. Your Buyer Universe is Narrow Right Now
If your current business isn’t getting much attention from buyers, a successful product launch could broaden your appeal and reset the narrative.
Legacy Advisors Podcast Insight
On the Legacy Advisors Podcast (listen here), we often remind founders:
“You’re not selling just a product. You’re selling a company — systems, teams, culture, repeatability.”
Product launches can be strategic proof points — but if they cannibalize focus or highlight risk, they might hurt more than help.
What Buyers Actually Want to See
If you’re in the middle of deciding when to go to market, remember that buyers want:
- Evidence of product-market fit
- Predictable, stable revenue (not speculative surges)
- A team that can execute again — not just once
- Clean data and clear visibility into margins
- Confidence that they’re not buying future headaches
A new product might excite them — but they’ll discount heavily if they’re the ones expected to carry the burden of launch and adoption.
Kris’s Founder Framework: How I Decide
Here’s how I coach founders through this decision:
1. Timeline Check
How long until full launch and measurable traction?
If it’s more than 6 months, you’re probably not going to hit the exit window at the top of the market.
2. Execution Check
Do you have the team and capital to execute without slipping?
If not, a buyer with infrastructure may be the smarter path.
3. Buyer Check
Are buyers already circling based on your current business?
If yes, delaying may cost you leverage.
4. Narrative Check
Can the new product strengthen your M&A story now — or is it a distraction?
A strong pipeline with early traction can support a higher multiple — if it enhances your core value.
Alternatives to a Full Delay
You don’t have to pick just “before” or “after.” Here are hybrid strategies:
Sell Before With Earnout Tied to Product
Negotiate a deal where the buyer pays more if the product hits performance metrics. This keeps you involved, aligns incentives, and gives buyers confidence.
Launch a Paid Beta Before Going to Market
You don’t need perfection. A few paying users or enterprise pilots can be enough to prove demand and support a stronger valuation.
Tell a Strategic Expansion Story
Use the product to tell a vision story, not a valuation story. Position it as a long-term growth lever the buyer can accelerate — not a last-minute value bump.
In The Entrepreneur’s Exit Playbook
In the book, I emphasize the importance of exit readiness over exit hype.
If you’re launch-ready but not M&A-ready — you’re not ready.
And if your product isn’t truly integrated into your business model — it’s a distraction, not a value driver.
One of the most powerful takeaways from the book is this:
“Buyers don’t pay for what you could do. They pay for what you’ve already proven you can do — and can do again.”
Final Thoughts
You built the product for a reason. You saw a market need. You had a vision.
But when it comes to M&A, the question isn’t just, “Will it work?”
It’s:
- “Do I need to launch this myself?”
- “Or should I sell the vision to someone who can launch it faster, bigger, better?”
You have options:
- Exit before, with the right buyer story
- Launch fast, prove traction, and exit with leverage
- Run a hybrid approach and let the market decide
The only wrong answer?
Waiting indefinitely while the window closes — on your product, your team, and your best chance at a life-changing exit.
Frequently Asked Questions About Strategic Timing: Should You Exit Before or After a Major Product Launch?
Is it better to sell my company before or after launching a major product?
It depends on your goals, your team’s execution ability, and your buyer universe. Selling before the launch may allow you to avoid execution risk, leverage a strategic buyer’s scale, and close a deal faster if your current business fundamentals are strong. On the other hand, if your product has the potential to unlock a new revenue stream or move you into a higher valuation category, and you’re confident in your ability to launch and gain traction within 6–12 months, it may be worth waiting. Kris Jones advises founders to base the decision on preparation, not hope — and to always tie product stories to measurable, credible value.
How do buyers perceive a company that hasn’t yet launched its next big product?
Buyers are skeptical by nature. They won’t assign full value to a product that hasn’t been launched, tested, or proven with paying customers. In fact, many buyers will treat a pending launch as a risk, not a value driver. They may discount your valuation or propose deal structures like earnouts to account for execution uncertainty. That’s why some founders choose to sell before launching — especially if they can show the buyer how the product fits into the roadmap and could be scaled faster post-acquisition.
Can I use the upcoming product launch to boost my valuation, even if I sell before launching it?
Yes — but it must be grounded in reality. You can position the product as a growth lever, especially if you’ve already secured early interest, have pilots in place, or have conducted a limited beta. Include it in your narrative as part of a broader strategic expansion — not as the only reason a buyer should pay more. This hybrid approach gives you the flexibility to demonstrate potential without being fully dependent on post-launch performance. Kris often recommends this strategy in both The Entrepreneur’s Exit Playbook and real-world advisory work.
What if I don’t have the team or capital to properly launch the product — should I still wait?
Probably not. If you’re under-resourced or already stretched thin, trying to push through a major product launch could hurt your company’s performance and distract from core revenue. In that case, it’s smarter to pursue an exit where the product is positioned as an untapped opportunity that the buyer can scale. Many strategic buyers are looking for exactly this kind of situation — strong foundation, clear roadmap, and a team that’s aware of its limits. By selling pre-launch with the right buyer, you de-risk the process and create a win-win.
Can I structure a deal that lets me benefit from the product launch without delaying the sale?
Absolutely. One common solution is to negotiate a deal with performance-based incentives, such as:
- Earnouts tied to product milestones or revenue from the new offering
- Contingent payments based on future success
- Post-close advisory roles where you help oversee the rollout
These structures allow you to capture some of the upside while still closing the deal now. Kris has helped several founders craft these types of arrangements — and they often result in more strategic, less stressful exits.