GradeThisDeal turns a business acquisition into a single 0-100 score and a plain-English verdict. This is exactly how that number is built — no black box.
The four dimensions
The composite score is the sum of four independently-scored dimensions:
- Valuation (25 points) — is the asking price fair versus what the business is worth? We take a sector multiple, adjust it for quality and lifecycle stage, apply it to normalised earnings (or revenue for high-growth software), bridge from enterprise value to equity using net debt, and compare the result to the asking price.
- Financial health (20 points) — margin quality, the payback period on the price, and how established the business is.
- Market-specific risk (25 points) — penalties from the real rules of the market: foreign-worker quotas, licence portability, lease runway, owner work-pass, government-contract transferability and more. Each is a reusable "risk primitive" switched on per market.
- Qualitative (30 points) — recurring revenue, customer diversification, owner independence, books quality, transition support and growth headroom.
The verdict bands
The composite maps to a verdict:
| Score | Verdict |
|---|---|
| 78-100 | Strong Buy |
| 65-77 | Favourable |
| 50-64 | Conditional |
| 35-49 | Caution |
| 0-34 | Pass |
Honest about the unknowns
You can mark any optional input unknown. The engine then substitutes a conservative assumption, raises a flag, and lowers a data-confidence meter that tells you how complete the picture is. The calculation never fails — it degrades gracefully so you always get a usable screen.
Calibrated, not generic
Each market is either calibrated (verified against primary sources, full confidence — Singapore and the US today) or light-touch (a labelled placeholder running on neutral defaults, with confidence capped). Reference figures carry a last-verified date, and the tool is a screening aid — not financial or legal advice. Always verify against primary sources before acting.
Want to see it in action? Open the calculator, enter a deal, and read the score breakdown alongside this guide.