deal-memo-writer

/deal-memo-writer -- Deal Memo Writer

Write structured deal memos for PE acquisitions and CRE investments.

Before executing, read _shared/plugin-context.md for Nexus domain vocabulary, MCP tool references, and quality standards.

Prerequisites

Required: Deal data -- either from MCP tools or provided manually (financials, company/property info, market context).

Optional MCP Connections (enhance automation):

• Nexus MCP (nexus.syntari-ai.com/api/mcp) -- nexus_get_deal, nexus_run_model for deal data and financial model outputs
• BigData.com MCP (via financial-analysis plugin) -- company tearsheets, financials, SEC filings for research
• PitchBook MCP -- comparable transactions, market sizing
• S&P Global / Kensho MCP -- Capital IQ financial data

Graceful Degradation: If MCP tools are not connected, provide deal details manually. Paste financials, upload documents, or describe the deal in conversation. The memo structure and analytical frameworks work identically with manual input.

When to Use

• Documenting a deal for IC review
• Creating a preliminary deal summary after initial screening
• Writing up deal rationale after first-round diligence
• Generating CRE investment memos with property-specific analysis
• Preparing a condensed one-pager for deal committee
• Converting raw deal data into formatted investment narrative

Memo Structure

Executive Summary (1 page)

• Deal overview: target, sector, size, structure
• Key thesis points (3-4 bullets)
• Headline financial metrics
• Recommendation (proceed/pass/more diligence)

Company/Property Overview (1-2 pages)

• Business description / property description
• History and key milestones
• Market position and competitive landscape
• Management team / tenant roster

Investment Thesis (1-2 pages)

• Market opportunity and TAM
• Competitive advantage / moat
• Value creation plan
• Return expectations
• Key risks and mitigants

Financial Analysis (2-3 pages)

• Historical financial performance
• Pro forma projections
• Return analysis (IRR, MOIC for PE; cap rate, cash yield for CRE)
• Sensitivity tables
• Comparable transactions

Risk Assessment (1 page)

• Key risks with severity rating (Critical / High / Medium / Low)
• Mitigation strategies
• Downside scenario analysis

Recommendation & Next Steps

• Clear recommendation with supporting rationale
• Conditions or open items
• Timeline for next steps

Data Shapes

Deal Memo

interface DealMemo {
  dealName: string
  dealType: 'pe_acquisition' | 'cre_investment'
  status: 'draft' | 'review' | 'approved' | 'rejected'
  sections: {
    executiveSummary: string
    companyOverview: string
    investmentThesis: string
    financialAnalysis: string
    riskAssessment: string
    recommendation: string
  }
  financials: {
    enterpriseValue?: number    // PE: total enterprise value
    equity?: number             // PE: equity check size
    irr?: number                // Projected IRR (%)
    moic?: number               // Projected MOIC (x)
    capRate?: number            // CRE: going-in cap rate (%)
    noi?: number                // CRE: net operating income ($)
  }
  createdBy: string
  createdAt: string
}

Workflow

Step 1: Gather All Inputs

• With Nexus MCP: Use nexus_get_deal to pull deal data. Use nexus_run_model for financial model outputs.
• With BigData.com MCP: Use bigdata_company_tearsheet for target company profiles and financials.
• Without MCP: Collect deal data, financial analysis, market research, and diligence findings from the user.

Step 2: Draft Each Section

Write with professional analytical tone, data-driven assertions, balanced risk perspective.

Step 3: Financial Tables

Format all financial data with monospaced font, consistent decimals, proper currency formatting. Use Intl.NumberFormat conventions ($X.XM, X.Xx for multiples, X.X% for percentages).

Step 4: Review

Cross-check all figures, ensure internal consistency, verify market data citations.

Sample Output

=======================================================
CONFIDENTIAL -- INVESTMENT MEMORANDUM
=======================================================
Target:     Meridian Data Solutions, Inc.
Sector:     Enterprise Software (Data Infrastructure)
Structure:  Control Buyout (85% equity)
EV:         $420M (8.2x LTM EBITDA)
Sponsor:    SVP Growth Equity Fund IV

EXECUTIVE SUMMARY
-----------------
Meridian Data Solutions is a mission-critical data infrastructure
platform serving 340+ enterprise clients across financial services
and healthcare. We recommend proceeding to final diligence based on:

  1. 92% recurring revenue with 118% NRR -- best-in-class retention
  2. $2.1B TAM growing 14% CAGR -- significant whitespace
  3. EBITDA margin expansion opportunity: 38% -> 48% via sales efficiency
  4. Platform stickiness: <2% annual logo churn, 18-month implementation

RETURN ANALYSIS
-----------------
                  Base        Upside      Downside
  Entry EV/EBITDA  8.2x        8.2x        8.2x
  Exit EV/EBITDA   10.0x       11.5x       8.0x
  Revenue CAGR     12%         16%         8%
  EBITDA Margin     48%         52%         42%
  Gross IRR        28.4%       35.1%       14.2%
  Net IRR          23.1%       29.6%       10.8%
  MOIC             2.8x        3.5x        1.8x

RECOMMENDATION: PROCEED to Phase II diligence
  > Outstanding items: management reference calls, IT security audit
  > Timeline: 4 weeks to final IC presentation
=======================================================

Workflow Chain

This skill is step 3 in the PE deal chain: /deal-screener -> /deal-memo-writer -> /financial-modeling. Also participates in document analysis and autonomous diligence chains.

Related Skills

• /deal-screener -- Screen and score deals before memo writing
• /financial-modeling -- LBO, DCF, M&A models to support deal memo financial analysis
• /om-parser -- Parse CRE offering memorandums for property deal data
• /cre-underwriter -- Full CRE underwriting model for CRE investment memos
• /competitive-analysis -- Competitor analysis for the market position section

Confidence Calibration

Every deal memo must include a calibrated confidence assessment:

## Confidence Assessment
- **Score**: 0.XX (0.0 = no confidence, 1.0 = full confidence)
- **Calibration**: conservative | neutral | optimistic
- **Confidence Drivers**: [what supports the score -- e.g., "audited financials available", "management meetings completed", "multiple data sources cross-referenced"]
- **Data Gaps**: [what's missing that would improve confidence -- e.g., "no customer reference calls", "industry comps limited to 3 transactions"]

Three-pass calibration: Generate analysis from conservative, neutral, and optimistic perspectives. High consistency across passes = high confidence. Divergence = flag for human review.

Typical confidence ranges:

• 0.85+: Full diligence materials, audited financials, management access, market data confirmed
• 0.65-0.84: Preliminary diligence, unaudited financials, limited management interaction
• 0.40-0.64: Screening-stage data only, significant assumptions required
• Below 0.40: Insufficient data for a credible memo -- request additional information before drafting