For investors Red Flag Screen
Before the LOI · search funds, PE, family offices
Go or no-go, in a week.
From whatever the seller has shared, the engine tests whether the top line is built on profitable customers or on discounts, one platform and one product. Then the forward view: is there growth left to buy, or, if the business is broken, can it be fixed?
Price
from $5,000
Time
5 business days
Output
Go / No-Go memo
Rush
3 days, +25%
The question it answers
Is this business worth the cost and effort of full diligence, and if it's broken, can it be fixed?
01What you get
A memo you can decide on.
Two to three pages: the recommendation, what drives it, and what diligence must answer.
Recommendation
Go, with conditions
Earnings
−$1.12M over 12 months; the deck leads with growth
Red flags
Growth bought with discounts · seven months of cash
Fixable?
Probably, with a different model · confidence medium
What to pay for
The asset floor, about $1.2M, plus funding for the plan
Illustrative memo layout. Sample content is fictional.
Deliverables
- Recommendation: Go, Go with conditions, or No-Go
- Red flags, each with its likely effect on price or structure
- Signs the earnings were dressed for the sale
- A first read on growth headroom, with a confidence level
- If it's underperforming: fixable or not, what it would take, and what that leaves worth paying
- The questions diligence must answer
02What the engine looks at
The top line, tested.
As much of the engine as the seller's data allows. What can't be tested yet becomes a diligence question.
Number one
What to pay for
Repeatable revenue
Growth source, discount dependence, retention trend.
Concentration
Channel, platform, product, supplier, founder.
Dressed for the sale
Spend or inventory cut before the sale while new customers fell.
Number two
What you could make
CAC against value
True cost per customer against what customers are worth.
Headroom
A first read: over, at or under what the brand can afford.
Confidence
How much the data supports each read.
Designed and run by Reeve's founder: 25 years in wholesale, international trade and direct-to-consumer, across five markets. How the engine works
03How it runs
Five business days, on your timeline.
From the day the seller's data arrives. Need it faster? Three days, +25%.
Day 0
Data in
Whatever the seller has shared: P&L, store and ad summaries.
Days 1–3
Screen
The engine tests the top line, concentration and signs of earnings dressed for the sale.
Day 4
Growth read
A first read on headroom, with a confidence level; follow-up questions to the seller.
Day 5
Memo and call
Go / No-Go with the reasons and the questions; 30 minutes with the deal team.
04What we need from you
The clock starts when your data is complete.
- The seller's P&L (monthly if possible)
- Store and marketplace sales summaries
- Ad account summaries or screenshots
- Any customer or cohort data shared
- Your deal timeline
View-only access, never admin. Your data is used only for your work.
05Not included
Stated plainly, so nothing surprises you.
- The full commercial and customer diligence (Commercial Due Diligence)
- A financial quality of earnings: that's your accountants' work
- Any work for the seller, ever
- Formal valuations
06Price and terms
From $5,000, fixed.
- Fixed fee, agreed before we start
- Five business days from complete seller data; three days for +25%
- Credited toward Commercial Due Diligence on the same deal
- Under your NDA
Fixed fee. Our advice doesn't depend on what you buy.
Request a screen07What comes next
Commercial Due DiligenceThe full model on 24 months of source data: what to pay for, and what you can make. See Commercial Due Diligence08Questions
About the Red Flag Screen.
What if the seller has shared very little?
We screen what there is, say what we couldn't test, and turn it into the questions to ask before the LOI.
Does the seller see the memo?
No. Buy-side work goes to you only.
Can you screen several deals?
Yes. Each is fixed-fee; ask about a rate for a pipeline.
Tell us about the deal.
Start with a free 20-minute call and an honest first read. We reply within one business day with fit, timing and a fixed fee. Happy to sign your NDA first.
How it works
- 01Pick a timeAny 20-minute slot that suits you.
- 02A few detailsFirm, deal size, stage and deadline. Happy to sign your NDA first.
- 03A call with Hamed, the founderAn honest first read; fit, timing and a fixed fee within one business day.