The Salmon Index - Acquisition Initialization Mandate
The Salmon Index™
Acquisition Initialization Mandate™ — AIM Instrument Suite · Seven instruments. One acquisition discipline system.
AIM · Professional Edition · v1.2
AIM · 01 — Disqualification Screen
DISQUALIFY
Enter actual target data. Every field computes a mandate verdict in real time from your inputs. A single hard stop terminates the mandate regardless of all other inputs. The instrument decides. No rationalizations. No exceptions.
Hard Stops
0
Conditionals
0
Mandate Status
Awaiting Inputs
Target Data Inputs — Real-Time Computed Verdict
Criterion
Target Input
Computed Output
Verdict
AIM·01·01
Target Sector
Confirms mandate sector eligibility and surfaces active buyer universe
—
Pending
AIM·01·02
Adjusted EBITDA (TTM)
Trailing 12-month owner-normalized profit ($K)
—
Pending
AIM·01·03
Revenue Change Year over Year
YoY revenue change percentage (negative = declining)
—
Pending
AIM·01·04
Top Customer Revenue
Single largest customer as percentage of total revenue
—
Pending
AIM·01·05
Seller Ask Price
Total acquisition ask ($K) — entry multiple auto-computed vs EBITDA
—
Pending
AIM·01·06
Recurring Revenue
Contractual recurring revenue as percentage of total
—
Pending
AIM·01·07
Gross Margin
Gross profit as percentage of revenue after COGS
—
Pending
AIM·01·08
Years in Operation
Full years the business has been operating
—
Pending
AIM·01·09
Employee Count
Total full-time equivalent employees
—
Pending
AIM·01·10
Licenses and Credentials
Operating licenses held by entity or individual?
—
Pending
AIM·01·11
Seller Representations and Warranties
Seller willingness to provide standard R&W
—
Pending
AIM·01·12
Contingent Liabilities
Known legal claims, tax exposure, or undisclosed obligations
—
Pending
AIM·01·13
Management Depth
Operational capability below the prior owner
—
Pending
AIM·01·14
Revenue Generation Model
How is new and recurring revenue originated?
—
Pending
Active Buyer Universe — Selected Sector
○
Mandate Verdict
Awaiting Target Data
Enter target data above. Each field computes a verdict automatically from your inputs. Hard stops terminate the mandate immediately. Conditional items require documented mitigation in AIM·06 THESIS before LOI execution.
AIM · 02 — Pre-LOI Due Diligence Assessment
DILIGENCE
Pre-LOI diligence is the difference between acquiring a business and acquiring a liability. Enter actual target data across four dimensions. Each section produces a scored risk classification computed from your inputs. The aggregate determines whether the target is diligence-cleared for LOI execution.
Financial
—
Legal
—
Operational
—
Revenue Quality
—
Financial Integrity
Not Assessed
Enter revenue and EBITDA for three consecutive years. Trend, CAGR, and margin trajectory compute automatically.
Year 1 (Oldest)
Revenue ($K)
EBITDA ($K)
Year 2 (Middle)
Revenue ($K)
EBITDA ($K)
Year 3 (TTM)
Revenue ($K)
EBITDA ($K)
Owner Add-backs ($K)
Above-market salary, personal expenses, one-time items
Pending
Total Debt and Liabilities ($K)
All obligations assumed or retired at close
Pending
Financial Statement Quality
How are financials prepared and by whom?
Pending
Legal and Structural Integrity
Not Assessed
Active Litigation
Pending or threatened legal claims against the business
Pending
UCC Liens and Encumbrances
Outstanding security interests against business assets
Pending
Intellectual Property Ownership
Trademarks, proprietary processes, trade names
Pending
Real Estate and Lease Structure
Operating location terms and transferability
Pending
Non-Compete and Restrictive Covenants
Seller non-compete availability and enforceability
Pending
Operational Integrity
Not Assessed
Key Employee Depth
Operational capability below the owner layer
Pending
Process Documentation
Degree to which operations are documented and repeatable
Pending
Technology and Systems Currency
Age and adequacy of operational infrastructure
Pending
Top Vendor Concentration
Single largest vendor as percentage of total cost base
Pending
Revenue Quality and Sustainability
Not Assessed
Active Customer Count
Total paying customers on active accounts
Pending
Top 3 Customers Combined Revenue
Top three customers combined as percentage of total revenue
Pending
Average Customer Tenure
Average length of active customer relationships
Pending
Contract Structure
Primary contractual arrangement with customers
Pending
Annual Customer Churn
Estimated percentage of customers lost annually
Pending
○
Diligence Verdict
Assessment In Progress
Complete all four sections above. The instrument aggregates risk across financial, legal, operational, and revenue quality dimensions into a single clearance determination. A Critical risk in any single section places the overall verdict at Conditional minimum regardless of performance in other sections.
AIM · 03 — Qualifying Sector Registry
SECTORS
Thirteen non-technology sectors qualify for the AIM acquisition mandate. Each is included because it exhibits pricing inefficiency at the lower-middle-market level, an identifiable buyer universe, and predictable response to the ECP value engineering playbook. Select any sector card for the full qualification profile.
AIM Qualifying Sector Registry — Non-Technology Universe
AIM · 04 — Target Acquisition Profile
PROFILE
Enter target data in the right column. The instrument compares each input against the AIM mandate standard and computes a real-time status for every criterion. Green means the target meets the standard. Amber means it falls in a conditional range. Red means it misses the mandate standard and requires documented justification before proceeding to LOI.
Mandate Standards vs Target Comparison
Criterion
AIM Mandate Standard
Target Value
Status
Adjusted EBITDA
$300K — $1,500K
—
Entry Multiple
2.5x — 4.5x EBITDA
—
Recurring Revenue
Minimum 20%
—
Gross Margin
Minimum 40%
—
Top Customer Concentration
Maximum 30%
—
Years in Operation
Minimum 3 years
—
Employee Count
3 to 50 employees
—
Financing Structure
SBA eligible or seller-financeable
—
Profile Match Score
—
Enter target data above to compute profile alignment against AIM mandate standards.
AIM · 05 — Deal Sourcing Protocol
SOURCE
The best acquisitions are never marketed. Off-market deal flow is the structural advantage that produces disciplined entry pricing and the operator discount that makes multiple arbitrage possible. Track your pipeline activity below. The instrument computes your funnel conversion rates and pipeline health in real time.
Pipeline Activity Tracker
Outreach Sent (Total)
—
Conversations Initiated
—
Targets Under Evaluation
—
LOIs Submitted
—
Response Rate
—
Evaluation Conversion
—
Pipeline Health
Enter data above
Sourcing Channels — Ranked by Deal Quality
1
Direct Outreach to Owners — Off-Market
Systematic direct outreach to owners matching the AIM target profile before they have engaged a broker or decided to sell. You are the first and only buyer. No competing bid, no broker fee inflating the price. The owner who receives a thoughtful personalized letter from a credible acquirer before deciding to sell is the most motivated seller you will ever encounter. Target minimum 10 letters per month. Personalize every one specifically to the recipient and their business.
PrimaryOff-MarketOngoing Cadence
2
Professional Referral Network — CPAs, Attorneys, Advisors
CPAs, business attorneys, wealth advisors, and estate planning professionals have the earliest visibility into owner exit intentions. An owner who mentions retirement to their CPA is 12 to 24 months ahead of any marketed deal. Building referral relationships with professionals serving business owners in your target sectors is the most durable and productive sourcing investment an operator can make. These relationships require ongoing cultivation but produce proprietary deal flow for years once established.
PrimaryRelationship-DrivenLong Lead Time
3
Industry Association and Trade Network Presence
Active presence in the trade associations, industry conferences, and peer networks of your target sectors creates deal flow through direct owner relationships. Owners who know you personally and trust your background are more willing to discuss a transaction than those receiving a cold letter. Industry presence builds the credibility that converts interest into serious conversation before the business is ever formally for sale.
PrimaryNetwork-BasedLong Lead Time
4
Business Broker and M&A Intermediary Relationships
Relationships with lower-middle-market brokers specializing in your target sectors create access to both pre-market and actively marketed deal flow. A broker who knows your criteria precisely will call you first. Being on a broker's short list of credible and closeable buyers is a material competitive advantage in brokered processes where buyer reliability is the broker's primary concern above all other factors.
SecondaryRelationship-Driven
5
Distressed and Forced-Exit Deal Flow — Specialized
Businesses emerging from financial distress, regulatory action, owner health events, or partnership disputes represent a specialized deal flow category with asymmetric pricing dynamics. Entry prices are materially below fair market value, seller motivation is acute, and competition is limited to operators who can manage a complex transition. The AIM-SVE-ECP system is specifically designed to handle the dependency and structural remediation challenges that distressed acquisitions present. For operators with the capability and risk tolerance, this deal flow category produces the most asymmetric return profiles in the entire acquisition universe.
SpecializedOpportunisticHighest Return Potential
AIM · 06 — Acquisition Thesis Builder
THESIS
No capital moves without a completed thesis. The acquisition thesis is the governing document that defines why this specific asset will be worth materially more at exit than at entry and precisely how that value creation will be achieved. It is written before LOI. It disciplines every hold period decision. Complete all six elements below. The instrument assembles your entries into a formatted thesis document in real time.
Six Required Thesis Elements
AIM · 06 · 01
Business and Sector Description
Sector, primary revenue model, customer profile, geography. Two to three sentences. Factual not promotional.
AIM · 06 · 02
Entry Pricing Rationale
Proposed price, implied EBITDA multiple, and why this represents a below-intrinsic-value entry. Reference SVE diagnostic output where available.
AIM · 06 · 03
Value Creation Engineering Plan
Three to five specific ECP engineering moves. For each state the target outcome and estimated EBITDA or multiple impact.
AIM · 06 · 04
Hold Period Income Extraction Plan
Planned salary, distributions, and other income extraction. Confirm business cash flow supports the plan after debt service.
AIM · 06 · 05
Conditional Disqualifier Mitigations
For each conditional item triggered in AIM·01, document the specific mitigation plan. If none triggered, state that explicitly.
AIM · 06 · 06
Exit Target and Wealth Creation Projection
Target exit multiple, projected EBITDA at exit after engineering, resulting enterprise value, and net wealth creation after debt payoff and fees.
AIM · 06 — Acquisition Thesis Document
Acquisition Thesis
AIM Instrument Suite v1.2 · The Salmon Index™ · Acquisition Initialization Mandate™
AIM · 07 — Exit Buyer Mapping Protocol
EXITMAP
Name your buyers before you sign the LOI. Enter each identified buyer, their type, and their acquisition motivation. The instrument scores your exit universe completeness and surfaces gaps in buyer coverage. An incomplete buyer universe is an incomplete acquisition thesis. The mandate requires a minimum viable buyer universe before capital is deployed.
Buyers Identified
0
buyers
Enter identified buyers below. Mandate minimum: one Tier 1 strategic or PE buyer plus two additional buyers across any tier before the exit map is considered complete and the acquisition thesis is valid for LOI execution.
No Buyers Entered
Buyer Universe — Enter All Identified Buyers by Name and Type
Buyer Name or Company
Buyer Type
Tier Classification
Action
Tier 1 Buyers
0
Strategic and PE platform
Tier 2 Buyers
0
Financial and independent
Total Universe
0
All identified buyers
○
Exit Map Verdict
No Buyers Identified
Enter identified buyers above. Mandate minimum: one Tier 1 buyer and three total buyers across any tier. Meeting this standard confirms the exit thesis is viable before capital is deployed. Failing to meet it means the acquisition has no validated exit thesis and should not proceed to LOI regardless of how attractive entry pricing appears.
AIM to SVE to ECP — The Instrument Sequence
When AIM·07 EXITMAP is complete, the acquisition mandate is fully initialized. The next instrument in sequence is the SVE Framework, specifically SVE·07 ACQUIRE, which validates entry pricing against The Salmon Index empirical benchmark dataset and produces the defensible LOI anchor. Upon acquisition close the ECP Instrument Suite governs all hold period execution. The SVE is run at months 6, 12, 18, and pre-exit as a diagnostic checkpoint against ECP engineering progress. AIM is not revisited during the hold period unless a second acquisition is being initialized in parallel.
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