When I was on the Sell-Side, I create a two-part opportunity test. The purpose of the test was to simplify ratings. Furthermore, the rubric provided the simplest explanation as to why a stock was a buy. The two part test asks which company or opportunity is: (1) the most innovative, and (2) the fastest growing. Any opportunity that reflects significant innovation and fast growth will likely provide you two outcomes: (1) a long tenure, or (2) a take-out at a very palatable price.
