Criteria

Description/

Considerations

Check

Financial Statements

Review financial history; assess health, liquidity, and sustained profitability over time.

Market Analysis

Examine market trends, identifying growth potential and potential industry disruptions.

Management Team

Evaluate leadership experience; analyze track record, competency, and succession planning strategies.

Business Model

Scrutinize the business model, emphasizing adaptability, scalability, and resilience to challenges.

Growth Prospects

Analyze future growth avenues, including global expansion, product launches, and strategic initiatives.

Competitive Positioning

Assess market positioning, analyzing the ability to gain and maintain competitive advantage.

Risks

Identify risks comprehensively, covering market, regulatory, operational, cybersecurity, and geopolitical aspects.

Valuation Metrics

Utilize diverse metrics (P/E, P/B, EV/EBITDA) for comprehensive valuation against industry benchmarks.

Dividends and Returns

Consider long-term returns, evaluating historical dividend payouts and total shareholder returns.

Exit Strategy

Develop clear exit plans, exploring potential scenarios and identifying suitable exit channels.

Regulatory Environment

Understand the regulatory landscape, ensuring compliance, and anticipating potential regulatory changes.

Macroeconomic Factors

Assess broader economic factors, including interest rates, inflation, and economic cycles.

Sustainability and ESG Factors

Evaluate environmental, social, and governance practices, impacting long-term sustainability and performance.

Technological Trends

Examine technological impacts, assessing the company's adaptability and investment in innovation.