(Retirement and health are good; "the industry is dying" or "lawsuit pending" are red flags.)

Are there documented processes? Who owns the intellectual property?

Does one customer represent more than 20% of the revenue? 5. Valuation and Financing

Does it rely entirely on the owner's personal relationships? If so, the value may disappear when they leave.

Don't just look at public marketplaces like . Some of the best deals are "off-market."