The 3 Minute Rule for Evaluating Any Business

Ever looked at a deal and thought: 'Where do I even start?' Here is the 3-minute rule to make sense of any opportunity before wasting hours on CIMs.

Ever open a 20-page confidential information memorandum (CIM) and wonder: 'Where do I even start?' Here is the 3-minute rule we use to triage deals fast:

First minute — understand the people: who runs it, who sells, who stays. Is there middle management, or does the founder do everything?

Second minute — look at the product: is it essential or replaceable? Is it sticky and repeatable?

Third minute — review the profit: is it consistent over 3-5 years or lucky timing from a single spike year?

If an opportunity passes all three minutes, move forward into detailed financial modeling. If it fails, pass quickly and keep your deal funnel moving.

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