PE Investment Memo Examples?

Fellow monkeys: Does anyone have an example of a PE investment memo that they can share? Ideally, I'd like to see one from a prior case study when you guys went through buy side recruiting.

If nothing else, can someone give me an outline of some of the most relevant topics that I should hit upon when I (hopefully) go through recruiting? Appreciate any help, thanks.

Private Equity Investment Memo's

Here's the basic structure of a private equity investment memo as laid out by a certified private equity user. attached is an investment memo from blue point capital group.

from certified user @Minnow4"

  1. Business and Transaction overview
  2. Financial Performance/Customer Data
  3. Industry Overview/Competitors
  4. Management Team
  5. Strategic Plan/Thesis
  6. Exit strategy
  7. Summary of Returns


Recommended Reading

Attachment Size
investment memo pdf 217.36 KB 217.36 KB
 
Best Response

The following would be the general outline of an investment memo based on what I saw.

  1. Executive Summary -> investment thesis, why the company, industry average growth rate, brief growth strategy and exit strategy
  2. Source of deal - Background of seller and reason for sale (retirement/spin off etc)
  3. History of the business
  4. Products and Services - Top products, their margins and % of total revenue
  5. Suppliers and customers - % of total revenue
  6. Detailed breakdown of company's daily operations and how they go about doing things e.g. sales and marketing (what are their plans/processes)
  7. Org chart + Management team + scoring/review
  8. Detailed Industry overview - Industry growth and growth drivers. Competitive landscape
  9. Detailed growth strategy e.g. what you plan to do with the company after buying it to get your IRR
  10. Investment risks e.g. FX
  11. Company financials - projections + public comps + M&A comps + lbo (base case, management case and what you think is right/your company)

Extra things that you can add in. 1. Overview of country if you are entering a new market 2. FX graphs 3. Overview of economic policies and political issues in the country 4. Any potential CEO/CFO lined up through headhunters 5. DD process timeline and expected completion date 6. Financing of the deal 7. Potential targets if your company follows a "buy and build strategy"' 8. Sensitivity tables

 
Woozy:

The following would be the general outline of an investment memo based on what I saw.

1. Executive Summary -> investment thesis, why the company, industry average growth rate, brief growth strategy and exit strategy
2. Source of deal - Background of seller and reason for sale (retirement/spin off etc)
3. History of the business - how it had started off
4. Products and Services - Top products, their margins and % of total revenue
5. Suppliers and customers - % of total revenue
6. Detailed breakdown of company's daily operations and how they go about doing things e.g. sales and marketing (what are their plans/processes)
7. Org chart + Management team + scoring/review
8. Detailed Industry overview - Industry growth and growth drivers. Competitive landscape
9. Detailed growth strategy e.g. what you plan to do with the company after buying it to get your IRR
10. Investment risks e.g. FX
11. Company financials - projections + public comps + M&A comps + lbo (base case, management case and what you think is right/your company)

Extra things that you can add in.
1. Overview of country if you are entering a new market
2. FX graphs
3. Overview of economic policies and political issues in the country
4. Any potential CEO/CFO lined up through headhunters
5. DD process timeline and expected completion date
6. Financing of the deal
7. Potential targets if your company follows a "buy and build strategy"'
8. Sensitivity tables

jesus christ this is not a CIM. your memo should be 2-3 pages MAX

 

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