A target list is more than a collection of company names. It should help an investment team explain why a business belongs, what evidence supports that view, and what to learn next.

If the list only has a name and a website, each review starts from scratch. The useful details let another person pick up the record and understand it without guessing.

Write the fit in buyer terms

Start from the firm's acquisition criteria, not a broad industry label. Record what the company sells, who buys it, where it operates, and how it relates to the firm's sector and size focus. Then add one sentence about why it belongs on the list. “Interesting company” is not a useful reason; a clear connection to the buy box is.

If the criteria need work before the team researches names, start with SilverShore's guide to building acquisition criteria that actually screen a deal.

Keep facts and assumptions separate

For each detail, record where it came from and when it was checked. Mark it as confirmed from the source, reported but not independently confirmed, or unknown. A company description may explain its services; it does not establish its size, ownership, or fit with your acquisition criteria.

This distinction matters when a new team member picks up the research. They can see what the source says, what still needs a check, and where an assumption entered the record.

Note size with its basis

If a revenue or EBITDA figure is available, capture the source, the date, and the period it covers. Keep the business scope beside the number. If the figure comes from a listing or advisor material and you do not have supporting detail, label it as reported. If the figure is not available, write “unknown.” Do not estimate just to fill the cell.

That makes the size screen easier to revisit later. A number without a period or source can look more certain than the material supports.

Record ownership and process carefully

Only mark ownership or sale status when a current source supports it, and save the source beside the note. If the status has not been checked, use “unknown.” A company on a target list is a research candidate; it is not necessarily a current opportunity. Keep those categories separate so the list does not suggest that a company is for sale when that has not been established.

Give every target a next step

Each active row should leave the reader with one clear action. It might be to verify a key fact, research a service line, compare the company with the buy box, or wait for a specific gap to be resolved. Assign the action to someone and record when it should be revisited.

  • Fit: why this company belongs on the list.
  • Evidence: the source and date behind each important detail.
  • Open questions: what is reported, unconfirmed, or unknown.
  • Next step: the action, owner, and follow-up date.

When the company no longer fits, move it out of the active queue and keep a short reason. That prevents an old name from staying in circulation with no clear purpose.

Keep the list useful, not crowded

A target list does not need every detail the team might eventually collect. It needs enough to answer three questions: why does this company fit, what supports that view, and what happens next? When the team can answer those questions quickly, the list is ready to guide research rather than simply store names.