Olo Deal Memo

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name: olo-deal-memo version: 1.0.0 description: Investment memorandum generation for M&A — structured deal write-ups from the acquirer's perspective with data-backed analysis author: ololand.ai author_url: https://ololand.ai license: MIT triggers: - investment memo - deal memo - investment memorandum - deal write-up - ic memo - investment committee - deal recommendation tags: - finance - documents - m-and-a - due-diligence - investment-banking

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Investment Memorandum Generation

Generate structured investment memos from the acquiring company's perspective.

Perspective

Written for the acquiring company (use "we" for acquirer)

Written about the target company (use company name or "the target")

Align with acquirer's investment thesis and acquisition strategy

Present balanced view: opportunity AND risk

Memo Structure

1. Executive Summary (1 page)

Transaction overview: target name, sector, deal size, structure

Strategic rationale in 3-4 bullet points

Key financial metrics (revenue, EBITDA, growth, valuation)

Recommendation: Proceed / Proceed with Conditions / Pass

2. Company Overview

Business description and history

Products/services and revenue mix

Customer base (count, concentration, retention)

Management team assessment

Organizational structure and headcount

3. Market & Competitive Position

Industry overview and growth outlook (reference market intelligence)

Competitive landscape and target's positioning

Sustainable competitive advantages (moats)

Key risks to market position

4. Financial Analysis

Historical financials (3-5 years): revenue, EBITDA, margins, FCF

Revenue quality: recurring %, customer concentration, cohort analysis

Working capital dynamics and cash conversion

CapEx requirements and capital intensity

Key financial trends and inflection points

5. Valuation

DCF analysis (base/bull/bear cases)

Comparable company analysis (public comps)

Precedent transaction analysis

Implied valuation range and recommended offer price

Sensitivity analysis on key assumptions

6. Strategic Rationale & Synergies

Revenue synergies (cross-sell, market expansion, pricing)

Cost synergies (overlap elimination, procurement, shared services)

Timeline to achieve synergies (Year 1 / Year 2 / Year 3)

Integration complexity and risk assessment

Synergy value vs. premium paid analysis

7. Risk Assessment

Deal-specific risks (top 5, ranked by impact × likelihood)

Mitigation strategies for each risk

Deal-breaker thresholds

Sensitivity of returns to key risk scenarios

8. Transaction Structure & Returns

Proposed structure (asset vs. stock, cash vs. equity mix)

Sources and uses of funds

Pro forma leverage and coverage ratios

Expected returns: IRR, MOIC, payback period

Key assumptions driving returns

9. Recommendation & Next Steps

Clear recommendation with confidence level

Conditions or diligence items to resolve

Proposed timeline for next phase

Required approvals and process steps

Data Aggregation Strategy

1. Pull existing DD data from platform (fast, <1s) 2. Fill gaps with RAG queries over uploaded documents (medium, ~3s) 3. Augment with market context via web research (slower, ~5s) 4. Synthesize into narrative sections with AI (~5-10s)

Quality Standards

Every claim backed by data point with source

Financial figures must reconcile across sections

Clearly separate facts from assumptions from opinions

Use conditional language for projections ("we estimate", "management projects")

Flag data gaps explicitly rather than filling with generic text

Total generation target: 15-20 seconds

Output Formats

Markdown: Primary format for platform display and editing

PDF: Professional layout for IC distribution

PPTX: Presentation format for deal committee meetings

Excel: Supporting financial model and sensitivity tables