Approaches for creating an initial list of industries of interest?

by a searcher from Denison University

5 years ago

Hello everyone!  I am trying to write down an initial list of industries of interest###-###-#### for further qualitative scoring and want to make sure that nothing falls off my radar,  Would you mind sharing your approaches or tools that helped you in this task?  In other words, how do you make sure that you covered as many sectors as possible?

I am looking for something more effective than just going through the NAICS codes, which are way too narrow.

Thanks!

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5 comments

searcher from University of Worcester

Personally I would also suggest that you make a strong focus of your search being interests and experience of a specific industry not just based on financial and growth metrics. There is no wisdom in buying a business that you hate working in!

5 years ago | like reply | 1 like

searcher from Michigan State University

Focus on industries where businesses trade at lower multiples, where there are non-obsolete assets which may be collateralized, and where seller paper is customary, for an overall lower cost of capital. You can call banks and business brokers to find them. Pursue what you are passionate about, but approach high multiple, asset-light, unstructureable markets with care. This is also a good primer: https://digitalcommons.pepperdine.edu/gsbm_pcm_pcmr/11/

5 years ago | like reply | 1 like

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