A target shortlist that’s all green flags isn’t a shortlist — it’s a wish list. The point of screening is to disqualify fast and cheap, so your time and diligence dollars go only to the few that survive.
We rank candidates against a consistent set of lenses:
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Strategic fit — does it serve the summary question, or just look interesting?
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Technology — modern, extensible architecture, or a legacy base you’ll be re-platforming for years?
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Growth & customer base — real momentum and a healthy installed base, or top-line that’s fragile under the hood?
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Integration potential — open APIs and a clean fit, or a tangle that erases the synergy case?
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Ownership & deal-ability — founder-led, VC-backed, PE roll-up, or strategic-owned? Each implies a very different price and process.
And we write down why we pass, not just why we like. “Pass — older tech.” “Pass — multiple products add integration complexity.” “Pass — tight fit with the current owner’s core business, likely expensive.” Those one-line rationales are often more valuable than the buy list, because they keep the team from re-litigating dead options.
A clean screen gives you three things: a credible top-3, a documented reason for every pass, and a head start on valuation.