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. | |
