The First-Look Buyer Playbook

Using the three states

PASS, a fact conflicts with the thesis or the risk does not justify further work.

INVESTIGATE, the target may fit, but a material question should be resolved before LOI.

PROGRESS, available information supports the next step without prejudging diligence.

Anti-bias rule

Every state requires a reason and evidence. “I like the sector” or “the founder impressed me” is not enough unless converted into testable facts.

DealPME

First-look work may use permitted teaser/T1 information and later documents only as NDA/permissions allow. It must never bypass T0/T1/T2 or ask AI to use sources the user cannot access.

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Prepare the first management meeting

Turn screening gaps into questions: why did margin move, which customers declined, what CAPEX was deferred, who controls pricing, why did inventory rise, which functions depend on the owner?

Each question should have a hypothesis and expected evidence. Avoid long generic lists that change no decision.

Identify specialist diligence early

First look should flag where expertise is required: complex tax, environmental, IP, cyber, technical, pensions, litigation, real estate or sector regulation. Do not pretend to cover specialist risk superficially with a standard questionnaire.

The role of price at first look

An early range can help decide whether the opportunity merits time, but should not hide gaps. Indicative price remains revisable after earnings normalisation, debt/cash, working capital and material risks.

Mini-FAQ

How much information is enough before LOI? Enough to understand perimeter, economics, major risks and price assumptions, not necessarily all confirmatory diligence.

Does `PROGRESS` mean buy? No. It only means the next investigation step appears worth its cost.

This resource explains; it is neither legal, tax or financial advice nor a formal valuation. Have your situation validated by a professional.