The KEY Dataset

When approaching a seller, you'll inevitably receive the standard financial package: income statements, balance sheets, and maybe a cash flow statement. These are table stakes in any acquisition—the bare minimum that gets you in the game. But if you want to make truly informed decisions, there's one data set that stands far above the rest in value: detailed sales transaction data.

This granular record of every sale—including customer information, products purchased, pricing, dates, and quantities—is the single most revealing data source you can request. While most buyers focus solely on top-line financials, transaction data provides the foundation for understanding what's actually driving the business at every stage of your acquisition journey.

Here's how this powerful data source creates different advantages as you move from initial screening to ownership.

1️⃣ Screening

Most sellers will provide a basic customer list, but detailed transaction data shows:

• Actual revenue distribution across customers (not just the top 5)

• Seasonal dependencies you won't see in quarterly summaries

• Recent concentration trends that annual reports might hide

• Product or service line dependencies masked by top-level numbers

⭐️ Pro tip: Ask for 24-36 months of transaction data in your initial request. Most sellers can export this easily, and it immediately shows you're a sophisticated buyer.

2️⃣ Diligence

Look at customer profitability insights beyond revenue

With transaction data in hand during due diligence, you can:

• Calculate true customer acquisition costs by segment

• Identify which products/services drive the highest margins

• Spot pricing inconsistencies that indicate discount dependencies

• Recognize growth patterns in specific segments

• Map customer lifespans and churn patterns

Framework: Create a cohort analysis by customer type, purchase date, and product mix to reveal the underlying business health.

3️⃣ Post- Transaction Operations

Transform transaction data into actionable growth plans

Post-acquisition, this same dataset becomes your roadmap for growth:

• Build an Ideal Customer Profile (ICP) based on your best customers' actual behavior

• Identify cross-selling opportunities within your existing customer base

• Develop targeted marketing campaigns for your highest-potential segments

• Optimize pricing strategies based on historical purchase patterns

• Create early warning systems for customer churn

Next step: In our upcoming issues, we'll explore how to combine transaction data with other key data sets to unlock even more powerful insights at each stage.

Need more help with pre-diligence screening?

From data tables to the closing table,

Happy Hump Day!