Scoring Methodology

How we turn a listing
into a number you can trust.

Every deal scored by Deal Alert AI runs through 5 dimensions. Here's exactly what each one measures and why it separates a deal worth calling about from one you should ignore.

91

A score of 91 means this deal is in the top 5% of everything we see.

Most listings score between 50 and 70. Anything above 80 is flagged for Pro members. Above 90 is rare — it means every major dimension cleared the threshold. The score isn't a recommendation to buy. It's a signal that this deal deserves your time.

Revenue Quality Multiple Fairness Traffic Risk Owner Dependency Deal Mechanics

The 5 dimensions

Each dimension is scored 0–20. The five totals combine into the final 0–100 score. A perfect 100 doesn't exist in practice — it would require a business with zero risks, which doesn't exist either.

01
Revenue Quality
Up to 20 points · What kind of money is it and how reliable is it?
MRR from subscriptions scores higher than one-time sales. Diversified revenue across many customers scores higher than one customer who pays 60% of the bills. We look at revenue consistency over the trailing 12 months, churn signals from the listing description, and category benchmarks for the business type.
High score
B2B SaaS, 94% annual retention, 120+ paying customers, MRR verified via EF data room, no single customer >15% of revenue
Low score
E-commerce brand where 80% of revenue is seasonal, 1 wholesale account drives half the sales, no email list to reactivate
02
Multiple Fairness
Up to 20 points · Are you paying a fair price relative to what exits actually happen at?
We compare the asking multiple (price ÷ monthly profit × 12) against recent comparable exits in the same category and size range. A SaaS business at 2.5x when comparable exits average 3.4x scores very high here. The same business asking 5x scores near zero — you're overpaying for current cash flow.
High score
Content site at 2.1x multiple when category average is 3.0x — priced 30% below market, likely motivated seller or underpriced listing
Low score
FBA brand at 4.8x in a category where 3.0–3.5x is standard — seller is optimistic, you have no room if growth stalls
03
Traffic & Distribution Risk
Up to 20 points · What happens if one source disappears?
We cross-check domain registration age against Wayback Machine crawl history, look for Google update volatility signals in the listing description, and evaluate whether the business has multiple traffic sources or is 100% dependent on one platform. An email list is a major positive signal — it means traffic can be rerouted if a platform changes.
High score
5yr domain, Google-stable through last 4 core updates, email list of 18k, 40% direct traffic — business survives most platform shocks
Low score
2yr domain, 95% Google organic, no email list, domain registration gap in 2024 — one algorithm change and revenue disappears
04
Owner Dependency
Up to 20 points · Can it run without the current owner?
A business that takes 40 hours/week from the seller to operate and has zero documented SOPs is not a business — it's a job you're buying. We flag hours/week disclosures, look for team mentions, evaluate whether content, customer relationships, or technical infrastructure are tied to the seller specifically, and check transition terms.
High score
8 hrs/wk to operate, VA handles support and content updates, seller offers 90-day transition, documented SOPs included in sale
Low score
35 hrs/wk, seller is the sole content creator and the face of the brand, customers chose the business specifically because of the seller's personal expertise
05
Deal Mechanics
Up to 20 points · How motivated is the seller and how fast is this moving?
How long has this listing been on the market? Seller motivation (relocation, health, co-founder split) is a meaningful signal — motivated sellers accept lower multiples and move faster. We also look at deal structure flexibility (SBA eligible, earn-out offered, seller financing available) and whether the listing has been modified since posting, which can indicate price negotiation.
High score
Listed 3 days ago, seller relocating for family reasons, SBA 7(a) eligible at full asking price, seller willing to hold 10% in earnout
Low score
Listed 90+ days with no price changes, seller vague on reason for sale, cash-only terms, no transition period offered

A real score, broken down.

Here's how a B2B SaaS deal — asking $334K, $11k/mo profit, 94% retention, listed 4 days — scored a 91.

Project management tool for construction teams
B2B SaaS · Empire Flippers · $334K asking · 2.5x multiple
91
Final Score
Revenue Quality
18 / 20
B2B recurring, 94% retention, 120 customers, no single customer >12%
Multiple Fairness
19 / 20
2.5x vs. B2B SaaS category avg of 3.4x — priced 26% below market
Traffic Risk
16 / 20
3yr domain, B2B direct traffic dominant, some Google exposure for top-funnel
Owner Dependency
15 / 20
8 hrs/wk, but seller is primary sales contact — transition risk moderate
Deal Mechanics
17 / 20
4 days listed, motivated seller (relocating), SBA eligible, 90-day transition

What each range means for you.

Scores are a filter, not a verdict. They tell you where to spend your due diligence time.

80–100
Strong buy signal — act within 48 hours
Deals at 80+ score on multiple dimensions simultaneously. These are rare. The best ones get LOIs within 2-3 days of listing. Pro members get these at 7am with direct broker links.
65–79
Interesting — worth a closer look
Strong in some dimensions, average in others. Usually worth a call to the broker to understand what's driving the score gap. Negotiation potential often exists here.
50–64
Average — skip unless it fits a specific thesis
These listings have meaningful weaknesses in at least 2–3 dimensions. Not necessarily bad businesses, but the score says you're not getting a deal — you're paying full price for average quality.
Below 50
Pass — something is materially wrong
High multiple, declining revenue, owner-dependent, platform-concentrated, or some combination. These deals exist, and some buyers are right to buy them — but at 50, you need a very specific reason to proceed.

Common questions

Is an 80+ score a guarantee I should buy?
No. The score tells you this deal passes our filters and is worth your time. It doesn't account for your personal fit (do you want to operate this type of business?), your financing situation, or information that only appears in the data room. Think of it as a qualified lead, not a done deal.
Why doesn't every category score the same?
A 2.5x multiple is excellent for SaaS but average for FBA. A 70% Google traffic dependency is high-risk for a content site but irrelevant for a B2B SaaS with direct sales. Each dimension is benchmarked against comparable businesses in the same category, not against a universal standard.
Do scores update if a listing gets price changes?
Yes. We re-score listings that get significant price changes or new information in the description. Pro members get notified when a previously lower-scored listing upgrades past 80.
Can I score a deal I found myself, not on a broker?
Yes — the free Deal Analyzer at dealalertai.com/deal-analyzer lets you paste any listing URL or enter the financials manually and get the same 0–100 score with a full breakdown in about 30 seconds.

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