Deal Scoring Methodology

How We Score Micro PE Deals:
A Data-Driven Framework

Not gut feelings. Not rubber-stamp reviews. Every deal that enters the PocketFundOS pipeline is scored across five objective dimensions — weighted by real acquisition outcomes.

5 scoring dimensions 100+ data points per deal Real-time recalculation
Example Deal — High Score
CloudSync Pro
SaaS · $250k · MRR $8.2k · 31% MoM growth
94 /100
Dimension Score
Market PotentialAddressable market & demand signals 92
Financial HealthRevenue, margins, and burn 96
Operational ComplexityTeam size, tech debt, dependencies 90
Growth TrajectoryMRR growth, churn rate, retention 95
Acquisition RiskLegal, compliance, concentration risk 97
Example Deal — Mid Score
InvoiceHero
SaaS · $174k · MRR $5.8k · 12% MoM growth
74 /100
Dimension Score
Market PotentialAddressable market & demand signals 68
Financial HealthRevenue, margins, and burn 81
Operational ComplexityTeam size, tech debt, dependencies 70
Growth TrajectoryMRR growth, churn rate, retention 72
Acquisition RiskLegal, compliance, concentration risk 79
High (80-100)
Mid (50-79)
Low (0-49)
Dimension 1 of 5

Market Potential

What does the market look like for this business? Are there expansion opportunities — new customer segments, adjacent verticals, pricing levers — or is this a peak-waterfall business with nowhere to grow?

  • Total addressable market size for this niche
  • Traffic and brand search volume trends
  • Customer segment breadth (no single customer >15%)
  • Pricing headroom and willingness-to-pay signals
  • Competitive moat — content, network effects, brand
CloudSync Pro 92
Market size
88
Brand strength
94
Pricing power
91
Competitive moat
87
Expansion ops
96
InvoiceHero 81
MRR
82
Net margins
78
Revenue multiple
85
Cash flow
80
Revenue conc.
74
Dimension 2 of 5

Financial Health

What's the actual money picture? Not just top-line revenue — we're looking at profitability margins, cash flow stability, whether the revenue multiple makes sense relative to comparable acquisitions, and whether the business has revenue concentration risk.

  • Monthly recurring revenue (MRR) and trajectory
  • Gross and net profit margins
  • Revenue multiple vs. comparable micro acquisitions
  • Operating cash flow and burn rate
  • Revenue concentration (top customer <15% of MRR)
Dimension 3 of 5

Operational Complexity

Can you run this after closing without needing a PhD in the owner's domain? We evaluate technical dependencies, team size, documentation quality, and whether the business requires specialized skills that are hard to hire for.

  • Number of full-time employees or contractors
  • Technical stack — modern, legacy, or Frankenstein
  • Documentation quality and process maturity
  • Vendor and supplier dependencies
  • Onboarding complexity for a new operator
CloudSync Pro 90
Team size
92
Tech stack
88
Documentation
91
Dependencies
86
Onboarding
94
InvoiceHero 72
MRR growth
70
Churn rate
75
NRR
68
Expansion rev
74
CAC payback
79
Dimension 4 of 5

Growth Trajectory

Where is this business going, not just where it is today. We look at MRR growth rate, churn and net revenue retention, expansion revenue, and the efficiency of customer acquisition. Sustainable growth beats explosive-but-fragile growth every time.

  • MRR growth rate — monthly, over trailing 6 months
  • Monthly churn rate — logo and revenue
  • Net revenue retention (NRR) — expansion vs. churn
  • Expansion revenue as % of new MRR
  • Customer acquisition cost and payback period
Dimension 5 of 5

Acquisition Risk

The score is great — but can you actually close and operate this without surprises? We evaluate legal complexity, contract issues, customer contract terms, regulatory exposure, and IP ownership to make sure the deal doesn't fall apart in due diligence.

  • IP ownership — does the seller actually own what they're selling?
  • Customer contract terms — are there restrictive assignments?
  • Employee and contractor agreements
  • Regulatory and compliance exposure
  • Historical legal disputes or pending issues
CloudSync Pro 97
IP ownership
98
Contract terms
95
Employment
97
Compliance
96
Litigation
99

Real Deal Score Breakdowns

Same scoring framework applied across different deal types and price ranges.

SaaS 94
CloudSync Pro
$250k · MRR $8.2k · 31% MoM growth
Market Potential
92
Financial Health
96
Op. Complexity
90
Growth Trajectory
95
Acquisition Risk
97
Marketplace 85
ShopifyThemeHub
$180k · MRR $6.4k · 18% MoM growth
Market Potential
83
Financial Health
87
Op. Complexity
84
Growth Trajectory
81
Acquisition Risk
90
SaaS 74
InvoiceHero
$174k · MRR $5.8k · 12% MoM growth
Market Potential
68
Financial Health
81
Op. Complexity
70
Growth Trajectory
72
Acquisition Risk
79
Mobile App 88
FitTrack Pro
$138k · MRR $4.1k · 22% MoM growth
Market Potential
86
Financial Health
89
Op. Complexity
87
Growth Trajectory
91
Acquisition Risk
88
Newsletter 71
The Freelancer's Digest
$92k · MRR $2.4k · 18k subscribers
Market Potential
75
Financial Health
72
Op. Complexity
85
Growth Trajectory
65
Acquisition Risk
79
Ecommerce 89
ArtisanalCoffeeCo
$410k · MRR $7.1k · 24% MoM growth
Market Potential
88
Financial Health
91
Op. Complexity
82
Growth Trajectory
92
Acquisition Risk
90

See the scoring in action →

Explore the full deal pipeline — with live scores, stage progression, and due diligence tracking. All built on the same scoring framework.

See It In Action →