CHAPTERS
- 0:01 – 0:16
End-to-end PE workflow overview: days to hours with Claude
The video sets up a private equity deal workflow accelerated by Claude, following two professionals on opposite sides of the same transaction. It introduces the target company and the core promise: compressing teaser creation, screening, modeling, and IC materials from days to hours.
- •Two-track narrative: sell-side associate (Sarah) and buy-side VP (Jen)
- •Target: Horizon Health Group, an $85M healthcare services business
- •Goal: accelerate deal flow and diligence using Claude skills
- •Outcome framing: faster deliverables without sacrificing depth
- 0:16 – 0:31
Sell-side: Claude builds a client-ready deal teaser from the data room
Sarah needs a polished teaser quickly and asks Claude to generate a client-ready presentation using a “deal teaser” workflow. Claude searches the Egnyte repository, pulls key operating and financial facts, and produces a professional teaser in minutes.
- •Claude searches Egnyte for relevant deal materials
- •Extracts revenue, margins, retention metrics, and facility details
- •Compiles customer analysis, financials, and operations highlights
- •Delivers a presentation-ready teaser in under two minutes
- 0:31 – 1:01
Buy-side kickoff: screening the teaser and starting an LBO build
Jen receives the teaser and uses Claude to screen the opportunity and generate an initial LBO model. Claude combines internal investment criteria from SharePoint with data extracted from the teaser to produce a screening memo quickly.
- •Claude pulls investment criteria from SharePoint
- •Extracts deal inputs directly from the teaser
- •Produces a comprehensive screening memo within minutes
- •Initial read: Horizon Health appears to fit the investment box
- 1:01 – 1:32
Deeper diligence: contract concentration and termination risk surfaced
Claude goes beyond the headline teaser by searching the Egnyte data room for contractual details. It identifies meaningful revenue concentration and contract terms that introduce risk, shifting the recommendation to a conditional pass pending mitigation.
- •Finds Blue Cross Regional is 18% of revenue
- •Notes contract expiration in Dec 2025
- •Flags 28% of revenue with short-term termination clauses
- •Verdict becomes conditional: renewal/contract certainty required
- 1:32 – 1:47
Rapid LBO output: complete model with pricing, leverage, and projections
Jen reviews a full LBO model built in minutes, including purchase price, leverage structure, and five-year projections. The base and upside cases indicate returns above the fund’s hurdle rate.
- •Purchase price assumption: 11x EBITDA
- •Capital structure: 5x leverage
- •Includes 5-year cash flow projection and debt amortization
- •Base case: 26% IRR and ~3.0x money multiple vs. 20% hurdle
- 1:47 – 2:02
Stress testing: downside scenario built directly in Excel
Jen asks Claude to create a downside case with weaker growth and margin assumptions. Claude generates the scenario immediately, and Jen validates assumptions as the work updates in real time.
- •Adds downside case with lower growth and margin assumptions
- •Model updates quickly in Excel
- •Jen reviews and validates scenario assumptions in real time
- •Downside case result: ~19% IRR (near threshold)
- 2:02 – 2:35
Sensitivity analysis: exit multiple matrix and outcome range
To understand robustness, Jen requests a sensitivity matrix across exit multiples. Claude produces an 8x–12x exit analysis, confirming alignment with the main model and showing returns remain acceptable under lower exits.
- •Builds exit multiple sensitivity matrix (8x to 12x)
- •At 10x exit, sensitivity ties to the model outputs
- •Even at 8x, returns remain acceptable
- •Provides a clearer “fan” of outcomes for decision-making
- 2:35 – 2:51
IC prep: synthesizing diligence into an LOI recommendation
With an investment committee meeting imminent, Jen asks Claude to synthesize the work into an IC-ready deck and LOI guidance. Claude recommends proceeding with an LOI within a valuation range while tying key risks to pre-LOI conditions.
- •Generates investment committee deck in minutes
- •Recommends LOI at ~10x–11x EBITDA
- •Flags contract risks as pre-LOI conditions
- •Summarizes base (26% IRR) vs downside (19% IRR) returns
- 2:51 – 3:06
Decision framing: valuation contingent on contract renewal certainty
The recommendation is refined to explicitly link price to the Blue Cross renewal risk. Claude suggests paying the higher multiple only if the renewal is secured, otherwise adjusting terms for return protection.
- •LOI at 11x if Blue Cross contract is “locked down”
- •Return protection via pricing/terms if renewal is uncertain
- •Makes risk-price tradeoffs explicit for IC decisioning
- •Connects diligence findings directly to negotiation posture
- 3:06 – 3:26
Wrap-up: measurable time savings and higher-quality diligence
The video closes by quantifying the time compression and emphasizing the diligence uplift. Claude not only speeds deliverables but also surfaces material risks and quantifies whether the deal still clears return thresholds.
- •Sarah: data room to teaser in ~2 minutes
- •Jen: teaser to investment recommendation in ~48 hours
- •Claude identified a material contract risk via document reading
- •Net result: better diligence, faster execution
