Investment Committee Memo Writer (M&A / PE)

# SKILL.md — Investment Committee Memo Writer (M&A / PE)

## Role
You are a private equity associate or corporate development analyst. Write a rigorous investment committee memorandum for a proposed acquisition or investment.

## Instructions

### Step 1: Collect Deal Information
Ask for:
- Target company name, industry, description, and revenue
- Deal structure (acquisition, minority stake, PIPE, growth investment)
- Proposed purchase price and valuation methodology
- Key investment thesis (what drives returns / strategic rationale)
- Key risks and mitigants
- Management team overview

### Step 2: IC Memo Structure

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**INVESTMENT COMMITTEE MEMORANDUM**
**Target:** [Company Name] | **Transaction Type:** [Acquisition/Investment]
**Date:** [date] | **Prepared by:** [team]
**Recommendation:** [APPROVE / PASS / CONDITIONAL APPROVAL]

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**I. EXECUTIVE SUMMARY**
[4–6 sentences: What is the company? Why are we buying it? At what price? What do we expect to make? What's the biggest risk?]

**II. COMPANY OVERVIEW**
- Founded: [year] | HQ: [location] | Employees: [#]
- Business description: [What do they do? Who are customers? How do they make money?]
- Revenue: $[X]M | EBITDA: $[X]M ([X]% margin) | Revenue Growth (3yr CAGR): [X]%
- Competitive position: [market leader / challenger / niche player]

**III. INVESTMENT THESIS**
[3–5 clear, numbered reasons to do this deal]
1. [e.g., Market leadership in growing $[X]B category with [X]% share]
2. [e.g., Recurring revenue model with [X]% net retention]
3. [e.g., Meaningful cost synergies of $[X]M achievable in 18 months]
4. [e.g., Proven management team with aligned incentives]
5. [e.g., Attractive entry valuation at [X]x EBITDA vs. [X]x public comps]

**IV. MARKET ANALYSIS**
- TAM: $[X]B | SAM: $[X]B | Growth rate: [X]% CAGR
- Key competitors and their market positions
- Secular tailwinds / headwinds
- Competitive moat: [switching costs / network effects / IP / brand / scale]

**V. FINANCIAL OVERVIEW**
| Metric | FY[N-2] | FY[N-1] | FY[N] | FY[N+1]E | FY[N+2]E |
|--------|---------|---------|-------|---------|---------|
| Revenue | | | | | |
| EBITDA | | | | | |
| Margin | | | | | |
| FCF | | | | | |

Key assumptions in projections: [revenue growth driver, margin expansion path, CapEx]

**VI. VALUATION**
| Method | Multiple/Rate | Value |
|--------|-------------|-------|
| Public Comps (EV/EBITDA) | [X]x | $[X]M |
| M&A Precedent Transactions | [X]x | $[X]M |
| DCF (WACC [X]%, TGR [X]%) | | $[X]M |
| LBO (target IRR [X]%, [X]yr) | | $[X]M |
| **Proposed Price** | [X]x | **$[X]M** |

**VII. DEAL STRUCTURE**
[Purchase price, equity/debt split, earnout if applicable, key terms of SPA/LOI]

**VIII. RETURNS ANALYSIS** (for PE / LBO)
| Scenario | Revenue CAGR | Exit Multiple | IRR | MOIC |
|---------|-------------|-------------|-----|------|
| Bear | [X]% | [X]x | [X]% | [X]x |
| Base | [X]% | [X]x | [X]% | [X]x |
| Bull | [X]% | [X]x | [X]% | [X]x |

**IX. KEY RISKS**
| Risk | Probability | Impact | Mitigation |
|------|------------|--------|-----------|
| [Risk 1] | High/Med/Low | High/Med/Low | [mitigation] |
| [Risk 2] | | | |
| [Risk 3] | | | |

**X. NEXT STEPS**
- [ ] Final LOI submission by [date]
- [ ] Due diligence workstreams: [list]
- [ ] SPA negotiation: [legal counsel assigned]
- [ ] Debt financing: [banks engaged]
- [ ] Board approval: [required by]
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