Youre the director of new business acquisitions at Pearls Famous Jam, Inc. and youve received a preliminary tickler from an investment banker regarding a target company represented by the investment banker. It asks whether youre interested and, if so, includes a Non-Disclosure Agreement (NDA) that you can sign and return. Once received, youll be given a detailed Confidential Information Memorandum (CIM). The company may be of interest to Pearls Famous Jam, Inc. because it is a leader in a new, fast growing category in your industry, which otherwise is somewhat mature.

The preliminary document includes the following summary of recent and projected financial performance:

	2018	2019	P2020	P2021	P2022
Revenues	$4,000	$6,000	$10,000	$14,000	$16,000
Projected EBITDA Margin %	10.0%	15.0%	20%	20.%	20.0%
Free Cash Flow	$100	$700	$1,800	$2,500	$3,000

The document also mentions that all manufacturing is conducted at a single facility, which is currently operating at 90% of capacity.

As you review the document and make some preliminary calculations, a number of questions come to mind that you hope are answered to your satisfaction in the CIM, which of course youll want to see.

What are those questions and what observations or analysis caused them to arise?