The Value Debt Index™ – When to Partner vs. When to Build
(Exclusive to Formare_HQ)
The Value Debt Index: When to Partner vs. When to Build
By Adrian Maharaj
You’ve been in this room:
“Should we partner… or build it ourselves?”
Cue the debate:
“We don’t have time to build.”
“We’ll lose control if we partner.”
“What’s cheaper?”
But here’s what I’ve learned after 20 years across ecosystems, GTM teams, and boardroom fire drills:
Most partner-vs-build decisions are really about value debt.
You’re either behind on delivering what the market needs—or ahead and can afford to build it right.
So I built a way to measure it.
It’s called the Value Debt Index™.
The Formula
Value Debt Index =
(Problem Severity × Urgency) ÷ (Internal Capability × GTM Reach)
🔎 Definitions
Problem Severity (1–10): How painful is this for the customer?
Urgency (1–10): How fast do they expect a fix?
Capability (1–10): How ready are we internally to solve it?
GTM Reach (1–10): Can we actually distribute this ourselves?
Examples
1. Seed-stage AI startup, huge potential, no GTM motion
Severity: 8
Urgency: 9
Capability: 5
GTM Reach: 2
→ Index = (8×9)/(5×2) = 72/10 = 7.2 → Partner now.
2. Series C SaaS expanding to a new vertical
Severity: 6
Urgency: 5
Capability: 8
GTM Reach: 7
→ Index = 30/56 = 0.54 → Build it.
3. Enterprise team reacting to a competitor move
→ High urgency, low internal clarity → Index > 1 = You’re in panic. Partnering might be avoidance, not strategy.
What the Index Reveals
Index > 1 = You’re in Value Debt.
You’re late to deliver something critical. Partner before churn eats you.Index < 1 = You Have Surplus.
You can build with intention. You own the narrative.
This model turns subjective decision-making into strategy you can defend.
Final Take
Most teams don’t partner out of strategy.
They do it to buy time—or avoid hard work.
The Value Debt Index helps you see through that fog.
It’s a lens, not a rule.
But it forces clarity when the noise is loud.
Use it to check your posture before you give away leverage.
