Screening Criteria for Businesses

 
 
 
 
1. Recurring Revenues, "Subscription Businesses"
  1. Significant and quantifiable user benefits
  2. High switching costs for customers/stickiness
  3. High share of after-sales revenues
2. Sustainable Competitive Advantage
  1. Patents, technology, scale advantages
  2. Organisational skills, e.g. sales or process efficiency
3. High Return on Capital Employed
  1. Tangible fixed assets plus net current assets <20% of turnover
  2. IRR for internal investment projects >25% pre-tax
4. Revenues in 5 Years min. €10 Mio.
  1. Fast roll-out resp. fast internationalisation

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