Deal memo

A one-page underwriting summary of the deal currently in your model — ready to print, save as PDF, or hand to a partner or lender.

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What belongs in an acquisition deal memo

A deal memo is the document that forces you to state a position. It converts a spreadsheet into an argument: here is the business, here is what we are paying, here is how it is financed, here is what it returns, here is what could go wrong, and here is the recommendation. If you cannot write it clearly, you do not understand the deal yet.

The sections that matter

  • The recommendation, first. Lead with the conclusion and the score. Nobody should have to read three pages to find out what you think.
  • The business. Sector, revenue, earnings, tenure and how the earnings are produced.
  • Valuation. The multiple being paid and how it sits against the sector band.
  • Sources and uses. Exactly where every dollar comes from and where it goes, including working capital.
  • Debt coverage. DSCR against the lender threshold. This is the first number a bank reads.
  • Returns. Cash-on-cash, payback, and IRR to exit.
  • Downside. The scenarios, and the revenue decline at which coverage breaks.
  • Risks. Named, specific and honest. A memo with no risks section is a sales document.

Use it before you write an LOI

Writing the memo is what surfaces the questions you have not asked. If you cannot state the customer concentration, the lease term, the owner's actual weekly hours, or which add-backs are verifiable, those are your next diligence items — not details to resolve after signing.

Can I give this to a lender?
It is a useful summary to start a conversation, but a lender will underwrite from verified tax returns, financial statements and their own valuation. Treat it as a preparation document, not an application.
How do I save it as a PDF?
Press Print and choose "Save as PDF" as the destination. The page is formatted for print — the navigation, buttons and ads are removed automatically.
Where does the data come from?
From whichever deal is currently in your session, or any deal you select from your saved list. Everything stays in your browser.

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