Checklist for evaluating an investment teaser?

Given an industry agnostic firm, what would you say is a solid checklist for evaluating investment teasers in order to decide which companies to pass on vs which to continue with the analysis process?

4 Comments
 

The check list could literally be your fund's website i.e. fund's focus:

  • industry/product match?

  • revenues? (i.e. size & stage: growth/restructuring/etc.) --> potential platform vs. buy & build?

  • profitability? (may hint equity ticket size)

 
"patavest" The check list could literally be your fund's website i.e. fund's focus:
  • industry/product match?

  • revenues? (i.e. size & stage: growth/restructuring/etc.) --> potential platform vs. buy & build?

  • profitability? (may hint equity ticket size)

I appreciate your response. To add some color, this would be for a profitable growth and mature stage private equity investment opportunities. I am curious if anybody has a regular checklist they uniformly apply to evaluating teasers, for example:

  1. Industry attractiveness
  2. Revenue & % growth
  3. EBITDA margin (variable by industry, but what % would be a threshold for passing?)
  4. Management team
  5. Value proposition clearly stated?
  6. Clear competitive advantage?
 
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