what are you primary filters for eliminating businesses during search?

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March 05, 2020

by a searcher from University of South Alabama in Mobile, AL, USA

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Reply by a searcher
in 1335 6th Ave, New York, NY 10019, USA
all above are critical + technological disruption, political risk, inflexible cost structure/constrained operating leverage, excessively asset heavy, channel partner risk, similar to customer concentration, (is all business volume dependent on one referral source or distributor relationship?), extreme employee turnover, commoditization risk...are all aspects to consider. Considerations are more meaningful as part of a larger story rather than an isolated metric.
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Reply by a searcher
from The University of Michigan in West Palm Beach, FL, USA
My initial filters are nothing to creative - mostly looking at financial metrics, industry tailwinds, and at least some sense for recurring revenue. Early on I look for things that make the business potentially too fragile to weather a hiccup or ownership change ,..a couple of the more common issues are customer concentration, and what the business will lose when the owner exits (e.g., is the owner the primary sales person?)
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