Write your deal thesis

Who this is for

Founder led lower middle market companies with 5 to 50 million in annual revenue.

The quick answer

Name the customer, the problem, and the capability you want to add. State how the deal improves revenue, margin, or cash. Build a short list of targets that fit. Plan integration before any letter of intent.

The framework in five steps

State the strategic job
What the deal must deliver and for whom.
Define fit rules
Size, margin, customer mix, tech or process, and culture.
List value levers
Cross sell, price, cost out, and working capital.
Draft the integration picture
Day one, one hundred days, systems, people, and customers.
Build and score the list
Use a simple scorecard and review monthly.

Example

A firm targeting healthcare needed faster entry. The thesis called for regional service firms with strong contracts. After scoring twelve targets they acquired one and integrated in ninety days.

Pitfalls and fixes

Shopping without a thesis. Write it first.
Ignoring integration. Plan it early.
Paying for synergies you cannot realise. Validate in diligence.

Checklist

One page thesis
Fit rules and value levers
Integration outline
Scored target list