How to Identify Promising Businesses: The Criteria That Guide Our Investments

Identifying promising businesses goes far beyond analyzing isolated numbers or short-term market trends.

At Norvia, we evaluate every investment opportunity with a rigorous and structured approach, combining technical analysis, strategic vision, and a deep understanding of the business and its leadership. Our goal is to invest in companies with strong potential for sustainable growth and long-term value creation.

Below, we outline the key criteria that guide our investment decisions.

1. Market Analysis

The first step is to understand the market in which the company operates. We assess market size, level of maturity, key industry trends, and consumer behavior.

We also evaluate the competitive landscape, barriers to entry, competitive advantages, and external risks that may impact the business.

An attractive market must be paired with a clear and well-positioned value proposition. This combination is essential to increase the likelihood of sustainable growth and long-term success.

2. Due diligence

Due diligence is a fundamental stage in ensuring transparency and security throughout the investment process. At this stage, we conduct an in-depth analysis of the company’s financial, legal, operational, and strategic aspects.

We review financial statements, ownership structure, contracts, internal processes, and key performance indicators. This analysis allows us to identify risks, validate information, and gain a clear and objective understanding of the company’s true financial and operational health before making any investment decision.

3. Perfil do empreendedor

Strong businesses are built by committed, well-prepared leaders with a long-term vision. For this reason, the profile of the entrepreneur and the founding team is one of the core pillars of our evaluation.

We assess the entrepreneurs’ experience, leadership capabilities, strategic mindset, resilience in the face of challenges, and openness to governance and professional management. Founders who are aligned with the company’s values and willing to continuously evolve tend to build more consistent, sustainable businesses with greater long-term value creation potential.

4. Scalability

Finally, we analyze the scalability potential of the business. We evaluate whether the business model supports sustainable growth, allowing revenue expansion without a proportional increase in costs, as well as the feasibility of expanding into new markets, products, or regions.

Businesses with high scalability potential typically demonstrate well-structured processes, efficient use of technology, and clearly defined growth strategies—key factors for maximizing return on investment over the medium and long term.

Conclusion

At Norvia, investing is a strategic and structured process. The combination of market analysis, rigorous due diligence, evaluation of the entrepreneur profile, and scalability potential enables us to identify solid, promising businesses aligned with our long-term vision.

More than investing in companies, we invest in consistent projects, qualified people, and opportunities with real potential for transformation and sustainable growth.