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Investment Memorandum Synopsis for a Private Equity Firm

Customer Background

The client is partner at a US based private investment firm focusing on investment opportunities in niche markets in Technology, Renewables and Healthcare Services. The client has successfully overseen many buyouts and environmental service business acquisitions. The company differentiates itself from other PE firms in the market by owning controlling interest in its subsidiary businesses.

The unique business model of identifying private, family owned stable cash flow businesses, acquiring them and providing investors the opportunity to participate in the growth of these family owned businesses has resulted in $1.4 billion in revenues as of 2019, a CAGR of 20% since 2017.

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We are happy with the research assistance provided by Brickwork team. The research support helped us gain more information about the target market, which helped us in our work.

Project Objective

Our client receives over 20 investment memorandum documents every month, from potential sellers. He was looking for a partner to synthesize the detailed, often over 100-page documents into crisp, 2-page summary documents. The aim was to free up valuable time for decision making and meeting prospects while at the same time ensuring critical information about each of the potential sellers was captured in an organized manner.

Our analysts studied each investment memorandum to gather information on the industry, customer’s core business, management team and financial strength. Unresolved litigations, suspicious financial transactions and environmental violations if any were red flagged.

Deep Dive Analysis


  • Highlight companies with unique products
  • Focus on company’s ability to withstand technological shifts
  • Rank companies based on customer diversity
  • Analyse dependence on suppliers

Growth Prospects

  • Study the growth prospects of the industry the company operates in
  • Company’s plans to grow in strategic hot spots
  • Gauge threat from competition

Owners & Team

  • Highlight current owners plans to participate in post buyout phase
  • Gauge Management Team’s expertise
  • Highlight overdependence on key staff or critical personnel


  • Study Revenue Pattern
  • Monitor CAPEX over the years
  • Analyse major acquisitions or divestments in recent years
  • Chart Working Capital requirements


Researched over 120 acquisitions

We strongly recommended 20% of the prospective acquisitions and flagged 16% as unviable due to compliance issues

Client acquired two companies that we recommended - one with a broad customer base and the other with niche product portfolio

Saved our client close to 500 hours so they could repurpose their time for business meetings

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