The 3 x-factors that get me especially excited about an investment:
(1) Low entry. It's hard to beat a good valuation.
(2) Sponsor-target fit. The more a sponsor can link their past experience to future performance, the better. This is where industry specialists thrive; it's all about narrative.
(3) Customer reviews. In-depth customer interviews, quotes, or reviews give strong confidence in the quality of revenue. Most independent sponsor under-invest in customer research during DD.
