Investment Analyst: Acquisition Underwriting, LBO Model & Diligence Memo (Lower Middle Market)

About us We're a U.S.-based private investment group (family office / independent sponsor) evaluating the acquisition of a profitable lower-middle-market business in the light industrial / business services space. We have a CIM, three years of financials, and a partial QoE. We need an independent analyst to underwrite the deal, build the model, and pressure-test whether the asking price makes sense. What we need An investment analyst who has actually underwritten acquisitions - not just built a template. You'll turn the CIM and financials into a defensible investment view: is this a good business, is the price fair, does the debt structure work, and what are the real risks? We want candor, not a deck that only tells us what we want to hear. Scope of work Normalize historical financials (add-backs, one-time items, owner comp adjustments) and reconcile to the QoE where possible. Build an LBO model with a driver-based operating forecast (5-year hold), sources & uses, debt schedule (senior + seller note), and returns waterfall (IRR, MOIC, cash-on-cash). Run entry/exit multiple sensitivities and leverage scenarios (base / downside / stress). Valuation triangulation: comparable transactions and a DCF cross-check against the LBO-implied value. Assess quality of earnings, revenue concentration, customer churn, and working capital / cash conversion. Flag key diligence gaps and deal risks (customer concentration, key-person, capex needs, cyclicality). Deliverables A clean, formula-driven Excel LBO model (color-coded inputs vs. formulas, working debt schedule, no unresolved circularity, toggle-able scenarios). A one-page returns summary with the sensitivity tables (entry multiple × leverage, IRR/MOIC grid). A 4-6 page investment memo: business quality, normalized earnings, valuation view, financing structure, risks, and a clear recommendation (proceed / renegotiate / pass) with a supportable price range. A 30-45 minute review call to walk us through the model and defend the assumptions.

Requirements

Demonstrable acquisition/buy-side experience (PE, search fund, independent sponsor, IB M&A, or corp dev). Reference deals in your proposal - anonymized is fine. Fluency in LBO mechanics, QoE / earnings normalization, and returns analysis. Advanced Excel (debt schedules, circularity handling, data tables, XLOOKUP/INDEX-MATCH). Sound commercial judgment and the willingness to deliver an unfavorable conclusion if the numbers warrant it. Some overlap with U.S. business hours (ET/CT/PT) for async check-ins. Nice to have CFA, or a background at a PE fund, search fund, or M&A advisory. Experience in lower-middle-market or the target's specific sector. Familiarity with reading a QoE report and CIM. How to apply Please include: (1) a 3-4 sentence take on which two diligence items you'd prioritize for a business of this profile and why, and (2) your estimated timeline. Proposals that don't address the diligence question won't be reviewed. We'll shortlist 2-3 candidates for a brief paid exercise (normalize a sample P&L and state an implied entry multiple) before awarding the full engagement.