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

  1. State the strategic job
    What the deal must deliver and for whom.

  2. Define fit rules
    Size, margin, customer mix, tech or process, and culture.

  3. List value levers
    Cross sell, price, cost out, and working capital.

  4. Draft the integration picture
    Day one, one hundred days, systems, people, and customers.

  5. 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

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