How red is the flag on a very young target company?

August 26, 2024
by a searcher from Columbia University - Columbia Business School in New York, NY, USA
Concisely: How Red is the Flag?
I am in a pre-LOI stage with a company that checks a lot of our boxes: Recurring revenue, low capital intensity, industry experience... However, the company is only 2 years old. I am interested to hear your opinions on how red is the flag, and what would be key things you would look into, apart from the obvious "why sell?" and "it could disappear as quickly as it appeared".
Thanks!
from University of Pennsylvania in Miami, FL, USA
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA