# Investment criteria (SAMPLE)

Replace these with your own. Keep it to one page: the agent scores every deal against this list, in this order.

1. **Check size:** $2M to $10M per deal.
2. **Sectors:** business and industrial services with recurring revenue; healthcare services. Excluded: consumer retail, biotech, crypto.
3. **Geography:** United States and Canada.
4. **Company size:** $3M to $25M of reported EBITDA.
5. **Revenue quality:** at least 60% recurring or contracted revenue.
6. **Profitability:** reported EBITDA margin of at least 12%.
7. **Leverage:** total debt at close, including any seller note, of no more than 4.0x EBITDA.
8. **Returns:** at least 20% net IRR and 2.5x net MOIC with an exit multiple no higher than the entry multiple. A base case that assumes a higher exit multiple is a FLAG; missing the thresholds at the entry multiple is a FAIL.
9. **Hold period:** 3 to 6 years.
10. **Sponsor track record:** at least two completed platform exits we can verify. Claimed but not yet verifiable is UNKNOWN.
11. **Sponsor commitment:** at least 5% of the equity.
12. **Customers:** no customer above 15% of revenue. 15% to 25% is a FLAG; above 25% is a deal-breaker.
13. **Management:** a CEO committed for at least two years after close, or a named successor under contract. A named successor without a signed contract is a FLAG.

**Deal-breakers:** any single customer above 25% of revenue; unresolved litigation not covered by insurance; no audited financials for the most recent full year.