Analysing an opportunity: rapid evaluation grid

Why a rapid evaluation grid?

When faced with several acquisition opportunities, you must quickly sort promising cases from those that do not match your criteria. An evaluation grid saves you time and prevents you from investing energy in false leads.

On platforms such as Leez, you have access to dozens of businesses for sale. Without a structured screening tool, you risk spreading yourself too thin or missing important warning signs.

This grid comes before the full due diligence. It allows you to evaluate an acquisition opportunity in 15-20 minutes and decide whether it deserves thorough examination. Consult our guide on the 8 steps to a successful acquisition to position this screening within the overall acquisition process.

The 10 essential evaluation criteria

This grid is based on 10 criteria divided into three categories: financial, operational and strategic. Each criterion receives a score from 0 to 2 points according to a simple system.

Scoring system:

• 2 points (green): criterion fully satisfactory
• 1 point (orange): criterion acceptable with reservations or questions to clarify
• 0 points (red): major warning sign or criterion not met

The total score out of 20 gives you a rapid indication of the opportunity's quality. This opportunity analysis method allows you to objectively compare several cases and identify the most critical selection criteria for your project.

Financial criteria

The first three criteria concern the company's financial health and your ability to finance the acquisition.

1. Profitability and trend
Analyse the EBITDA over the last 3 years. Green signal: positive and stable or growing EBITDA. Red signal: recurring losses or sharp drop in profitability.

2. Asking price vs valuation
Compare the price with standard sector multiples (generally 3-6x EBITDA for SMEs). Use the Leez valuation tool to verify consistency. Green signal: price aligned with or below multiples. Red signal: price 50% or more above benchmarks.

3. Financing capacity
Assess your personal contribution (minimum 20-30% generally required) and the feasibility of bank financing. Green signal: sufficient contribution and bankable case. Red signal: significant gap between your resources and the price.

Operational criteria

These four criteria evaluate the company's operational solidity and risks related to the transition.

1. Dependence on the seller
Analyse whether customers, suppliers or key know-how are personally linked to the current owner. Green signal: transferable relationships, documented processes. Red signal: clientele loyal only to the seller.

2. State of infrastructure and assets
Check the condition of equipment, premises, IT infrastructure. Green signal: recent or well-maintained assets. Red signal: heavy investments required in the short term.

3. Quality of the existing team
Assess the stability, competence and motivation of employees. Green signal: stable team with complementary skills. Red signal: high turnover or announced departures.

4. Documented systems and processes
Verify the existence of written procedures, technical and administrative documentation. Green signal: clear and formalised processes. Red signal: everything relies on the seller's memory.

Strategic criteria

The last three criteria concern the fit between the opportunity and your personal project.

1. Fit with your profile and skills
Key questions: Do you have experience in the sector? The necessary managerial skills? Green signal: strong match with your background. Red signal: completely unknown sector and missing skills.

2. Identifiable development potential
Identify concrete growth levers: new markets, digitalisation, cost optimisation. Green signal: 2-3 clear improvement areas. Red signal: saturated market with no development prospects.

3. Sector and competitive risks
Assess threats: regulatory changes, technological disruption, increased competition. Green signal: stable sector with barriers to entry. Red signal: declining sector or threatened by structural changes.

To deepen your analysis, consult our guide on how to find the right opportunity and avoid pitfalls.

How to use this grid in practice

Instructions in 3 steps:

Step 1: Scoring
Assign 0, 1 or 2 points to each criterion based on information available in the listing or during first contact. Be honest and objective.

Step 2: Calculate total score
Add up the points to obtain a score out of 20. This figure gives you a rapid indication of the opportunity's quality.

Step 3: Interpretation and decision

• 15-20 points: solid opportunity, investigate further quickly
• 10-14 points: mixed potential, ask additional questions before proceeding
• Less than 10 points: too many warning signs, move on to another opportunity

Apply this grid to listings on Leez before requesting more information or signing an NDA. This grid does not replace a complete rapid due diligence but helps you prioritise your efforts.

Mistakes to avoid during screening

Four common pitfalls compromise the quality of initial evaluation.

1. Focusing solely on price
An attractive price does not compensate for major operational weaknesses or critical dependence on the seller. Example: a company sold at 2x EBITDA but with 80% of turnover dependent on a single customer.

2. Underestimating dependence on the seller
This is the number one risk in acquisitions. If customers buy because of the personal relationship with the owner, the transition will be perilous.

3. Neglecting fit with your profile
Taking over a company in an unfamiliar sector multiplies difficulties. Be realistic about your skills and learning capacity.

4. Ignoring minor warning signs
Several small orange signals combined become a red signal. Do not minimise grey areas.

If in doubt, consult the Leez partner expert network to obtain professional advice before committing.

A rapid evaluation grid allows you to efficiently filter opportunities and focus your efforts on high-potential cases. Financial criteria (profitability, debt, cash flow) establish the foundations of economic viability. Operational criteria (dependence on seller, team, systems) reveal the company's ability to function after the acquisition. Strategic criteria (positioning, growth, synergies) determine future development potential.

This structured method saves you time and reduces the risk of investing in an unsuitable case. It does not replace thorough due diligence, but constitutes an essential first filter to identify targets that deserve detailed analysis.

Ready to apply this grid? Discover businesses for sale on Leez and start your analysis today. For personalised support in your evaluation process, our expert network is at your disposal.