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Develop screening criteria for private equity targets in a sector: 1. Financial Criteria: - Revenue range ($) - EBITDA range ($) - EBITDA margin minimum (%) - Revenue growth (historical and projected) - Customer concentration limits - Working capital intensity 2. Business Model Criteria: - Recurring revenue % minimum - Contract visibility - Margin expansion potential - Fragmented market opportunity - Value-add levers 3. Market Position: - Market share requirements - Competitive moat characteristics - Industry growth outlook - Secular tailwind exposure 4. Management: - Owner-operator preference - Rollover requirements - Key person retention importance 5. Deal Structure: - Target ownership % - Leverage capacity - Seller financing potential - Earnout applicability 6. Value Creation Plan: - Operational improvements - Buy-and-build potential - Geographic expansion - Product line extension 7. Exit Considerations: - Strategic buyer universe - Sponsor-to-sponsor potential - IPO candidacy - Target hold period Output: Detailed screening criteria with priority ranking.

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PE Target Screening Criteria

Private EquityLBODeal Sourcing

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Asset Class:Private Equity
Research Type:Fundamental
Stance:Neutral