Methodology
Reports combine deterministic financial calculations with AI-generated interpretation. Deterministic outputs (multiples, margin ratios, coverage measures) are computed from the inputs you provide. AI outputs summarize risks, opportunities, negotiation posture, and due-diligence questions grounded in those inputs. The two are surfaced side-by-side, never merged.
How the Acquisition Score Works
The Acquisition Score is generated from multiple analytical categories, each scored independently against benchmarks and best-practice heuristics. Categories contribute to the overall score through a proprietary weighted model that is continuously improved based on research, buyer feedback, and post-close outcomes.
To protect model integrity we do not publish the exact weights or thresholds. However, every input that feeds a category is visible in the report with its provenance label, so any reviewer can trace how a category was informed.
How We Estimate Business Value
Valuations are generated using multiple accepted methodologies. The methods applied to a given business depend on its size, sector, revenue model, and the quality of information available.
- Seller's Discretionary Earnings (SDE) multiples
- EBITDA multiples
- Discounted Cash Flow (DCF)
- Comparable transactions
- Industry benchmarks
- Risk adjustments
- Recurring revenue premiums
- Owner-dependence discounts
Confidence Framework
Confidence measures the share of report inputs that are Verified or Calculated — High (≥85%), Medium (60–84%), Low (below 60%). It is a coverage measure of the evidence, not a claim about AI certainty, and it does not raise or lower the acquisition score.
Provenance
Every value in a report carries a provenance label:
- Verified — confirmed against source documents.
- Seller reported — provided by the seller, not independently verified.
- Calculated — deterministically derived from persisted inputs.
- AI inference — modelled estimate, not fact.
- Unknown — information gap to resolve in diligence.
Unknowns remain visible in reports. Missing information is treated as evidence about the deal, not something to hide.
Data Sources & Benchmarks
AcquireLens AI combines multiple categories of information to produce each report. Output quality always depends on the quality of the uploaded information.
- User-uploaded financial information
- Operational questionnaires
- Public company information where applicable
- Industry benchmarks
- Accounting best practices
- Financial ratio databases
- Acquisition methodology research
Recommendations, valuation ranges, and risk flags are only as strong as the underlying inputs. Reports transparently label unknowns so reviewers can prioritize diligence.
Infrastructure & Security
AcquireLens AI runs on modern managed cloud infrastructure designed for reliability, scalability, and security. Production controls include:
Report a suspected vulnerability to support@acquirelens.ai. See our responsible disclosure policy for scope and safe-harbor terms.
Data Retention & Deletion
- Customers own their uploaded data.
- Reports remain accessible for as long as the account is active.
- Users may permanently delete uploaded information at any time from account settings.
- Deleted information is removed from active systems according to internal retention policies; encrypted backups age out on their normal rotation.
- AcquireLens AI never sells customer data.
Trusted Service Providers
AcquireLens AI relies on a small set of vetted subprocessors to operate the platform. Providers are selected for their security posture and are reviewed periodically.
| Purpose | Category | Region | Security Standards |
|---|---|---|---|
| Authentication | Identity & session management | US / Global | SOC 2, ISO 27001 |
| Database | Managed PostgreSQL with row-level security | US | SOC 2, ISO 27001, encryption at rest |
| Cloud Infrastructure | Application hosting & edge delivery | Global edge | SOC 2, ISO 27001, PCI DSS |
| Email Delivery | Transactional email | US / EU | SOC 2, TLS in transit |
| Payment Processing | Subscription & one-time billing | US / Global | PCI DSS Level 1 |
| Analytics | Aggregate product analytics | US | SOC 2, IP anonymization |
| AI Processing | LLM inference for report drafting | US | SOC 2, no training on customer data |
Categories describe the role each provider performs. A current named subprocessor list is available on request for enterprise accounts — contact support@acquirelens.ai. Subprocessors are reviewed periodically for security and regulatory posture.
What AI Can and Cannot Do
- Identify patterns across financials and operations
- Accelerate due diligence question generation
- Highlight risks and opportunities
- Estimate valuation ranges
- Legal advice
- Accounting advice
- Tax advice
- Human negotiation
- Independent investment judgment
Security & Compliance Roadmap
- TLS encryption
- Role-based access
- Row Level Security
- Audit logging
- Immutable reports
- Provenance labels
- Expanded provider-level subprocessor disclosures
- Signed vendor DPA templates for enterprise accounts
- SOC 2 Type I evaluation
- Enterprise SSO (SAML) support
- Configurable data-retention windows
Methodology, valuation approach, data sources, retention, and subprocessors are documented directly in the sections above. Roadmap items are directional and are not committed to specific dates until formally announced.
Frequently Asked Questions
Enterprise Trust Pack
Search funds, private equity, family offices, M&A advisors, and corporate development teams can request our enterprise trust pack for internal vendor review.
Human review recommendation
AcquireLens is built to be investment-committee ready: professional language, transparent evidence, and clearly-labelled unknowns. It is not a substitute for qualified human review by a CPA, attorney, lender, or investment committee.