In brief: Look for understandable economics, durable demand, low concentration, manageable operations, clear ownership and assets that can actually transfer.
Economic quality
- Revenue and profit trend
- Gross and contribution margin
- Cash conversion
- Working-capital needs
- Customer or traffic concentration
Operational fit
Estimate the real owner workload and compare it with your skills, available time and team. A business can be financially attractive and still be a poor personal fit.
Durability
Understand why customers arrive, why they stay or repurchase, and what external platforms the business depends on. Durable demand is more valuable than a temporary spike.
Transferability
Confirm that the buyer can obtain control of the critical domains, code, contracts, accounts, data and relationships.
Price versus risk
Do not evaluate price in isolation. The correct question is whether expected cash flow and upside compensate you for the risks and work you are taking on.