IC Memo - How to Pitch?
Hello Hello,
I somehow managed to get a lead on a potential acquisition and now running my own IC memo to my market officer. However, I noticed my storytelling needs significant work and structure. How did you learn how to tell a story for pitching to the investment committee? How do you actually address the risks in a deal? The last question is do you have an old IC Memo that you're proud of? Would you be willing to share the story?
Keep it to the point and don't get too verbose - very clean, concise business writing.
First page should just be a 1-2 paragraph summary of the deal (i.e. what is the opportunity, where is it located, what is the strategy, etc.), high level summary/table of the asset and high level returns summary, with a site plan or aerial.
Follow that page up with a detailed overview of the property - location, who are the major tenants and what is their status/any crucial co-tenancy or other clauses that may represent significant risk, current vacancy, sales performance, collections, etc. This section is where you should call out any major property-related risks such as the co-tenancy clauses mentioned before, any major upcoming expiries, etc. You don't need to call them out in a "Risks" section (unless this is standard practice for your shop, in which case do that), but make sure they are called out somehow.
Then you can have a section on market analysis/comps, and finally your financial analysis with an overview of assumptions.
You'll get a feel for how to make things flow as you do more of them, but this is the general structure I follow. If it's a more complex deal I might dedicate a section to the business plan to get more granular.
The above comment touches on all the key points but to add one thing - don't try and "sell" the deal. If you're not a broker and you're presenting to an investment committee you present the facts, pros and cons, and give your conclusion. Be ready to defend any assumptions you came up with. Stay away from very rosy sales language as well.
In the same vein, any deal risks (cons) you present should have mitigants.
Adding on to what's been said here, you need to have conviction on the deal. The overall story needs to point to why you think this is a good deal even if you're not being sales-y.
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