Using algorithms and data to shortcut deal identification and prioritization.

investor profile

May 22, 2021

by an investor from Indiana University at Bloomington in Austin, TX, USA

Hi All,

Brand new here, but would be curious to know have or are developing their own algorithms to short cut deal sourcing and prioritization of acquisition targets.

I have access to a data set of 420M Linked IN profiles, about 18 million company profiles (inc owner / leadership contact info) via one of my business partners. Going to run an experiment over the next couple of weeks to see if I can create an algorithm that identifies US, lower middle market companies that may be looking for an exit. Thinking of keying off of information like owners age (are they 55+), length of ownership, presence of a family member in the company with the same last name, etc, past private equity acquisitions, etc.

Be open to input and ideas on what other characteristics, behaviors, or patterns I should consider when building this model.

4
10
82
Replies
10
commentor profile
Reply by a searcher
from University of Queensland in Brisbane QLD, Australia
Good question as a lot of time wasting can occur without a logical way to filter good candidates. In no particular order these would be strong considerations for any scanning filter to then decide if it's worth making contact: years in business, leased space, inventory amount, listed price, EBITDA, operating margin, cashflow amount, value of plant/equipment, seller finance available. At least half of these need to be acceptable to you
commentor profile
Reply by a searcher
in London, UK
redactedredactedredactedredacted
redactedredactedredacted
commentor profile
+8 more replies.
Join the discussion