Fsi Pe Investment Committee Memo

Investment Committee Memo

Workflow

Step 1: Gather Inputs

Collect from the user (or from prior analysis in the session):

• Company overview and business description
• Industry/market context
• Historical financials (3-5 years)
• Management assessment
• Deal terms (price, structure, financing)
• Due diligence findings (commercial, financial, legal, operational)
• Value creation plan / 100-day plan
• Returns analysis (base, upside, downside)

Step 2: Draft Memo Structure

Standard IC memo format:

I. Executive Summary (1 page)

• Company description, deal rationale, key terms
• Recommendation and headline returns
• Top 3 risks and mitigants

II. Company Overview (1-2 pages)

• Business description, products/services
• Customer base and go-to-market
• Competitive positioning
• Management team

III. Industry & Market (1 page)

• Market size and growth
• Competitive landscape
• Secular trends / tailwinds
• Regulatory environment

IV. Financial Analysis (2-3 pages)

• Historical performance (revenue, EBITDA, margins, cash flow)
• Quality of earnings adjustments
• Working capital analysis
• Capex requirements

V. Investment Thesis (1 page)

• Why this is an attractive investment (3-5 pillars)
• Value creation levers (organic growth, margin expansion, M&A, multiple expansion)
• 100-day priorities

VI. Deal Terms & Structure (1 page)

• Enterprise value and implied multiples
• Sources & uses
• Capital structure / leverage
• Key legal terms

VII. Returns Analysis (1 page)

• Base, upside, and downside scenarios
• IRR and MOIC across scenarios
• Key assumptions driving returns
• Sensitivity analysis

VIII. Risk Factors (1 page)

• Key risks ranked by severity and likelihood
• Mitigants for each risk
• Deal-breaker risks (if any)

IX. Recommendation

• Clear recommendation: Proceed / Pass / Conditional proceed
• Key conditions or next steps

Step 3: Output Format

• Default: Word document (.docx) with professional formatting
• Alternative: Markdown for quick review
• Include tables for financials and returns, not just prose

Important Notes

• IC memos should be factual and balanced — present both bull and bear cases honestly
• Don't minimize risks. IC members will find them anyway; credibility matters
• Use the firm's standard memo template if the user provides one
• Financial tables should tie — check that EBITDA bridges, S&U balances, and returns math is consistent
• Ask for missing inputs rather than making assumptions on deal terms or returns