The USAID Economic Security Program Lets Make a DealThe Art and - - PowerPoint PPT Presentation

The USAID Economic Security Program

Let’s Make a Deal…The Art and Science of Writing Deal Notes

What is a Deal Note?

• Is the “story” of a particular opportunity
• It is a documents that captures the salient issues of an opportunity

and is drafted during the co-creation process

• It is submitted to USAID for review and approval
• Once it is approved, it is the foundational document used to prepare

and execute the appropriate contracting mechanism

• It is most closely aligned with the Partnership Development Fund

Partnership Development Fund Process

• Submission of Concept Note
• Evaluation of Concept Note
• Co-Creation Process
• Negotiation of Specific Deal Points and Details
• Due Diligence
• Creation of a Deal Note
• Submission of Deal Note to USAID
• Decision by USAID
• Begin relevant contract and implementation

Parts of a Deal Note

• Background Information
• Overview of the Opportunity
• Partner Profiles
• Justification for Program Involvement
• Due Diligence
• Program Support Recommendation
• Economic Impact
• Deal Points
• Impact on Metrics
• Annexes

Background Information

• Sector
• Type
• Location
• Mechanism
• Partner
• Partner Contact
• Total Budget
• Partner Participation
• Program Participation

Overview of Opportunity

• Thorough explanation of the opportunity including who, what, where,

when, why and how.

• Should be clear and concise
• Should have a global/regional snapshot, problem statement, clearly

defined solution, and why the solution is important

• Should be written (as with the whole deal note) in active voice.
• Example: Anka is helping Nato with the press release. (ACTIVE)

Nato is being helped with the press release by Anka (PASSIVE)

• Example: Mariam served dinner to her guests (ACTIVE)

Dinner is being served by Mariam to her guests (PASSIVE)

Partner Profiles

• Brief description of each partner company or organization
• Should contain salient info on a) year it was founded, b) its core

activities, and c) its leadership

• This is NOT where due diligence is discussed

Justification for Program Involvement

• Why the opportunity is important to Georgia
• Why the opportunity is important to the Program
• The Program’s role in the opportunity
• Why the Program should support the opportunity
• Why the Program is a better partner than some other
• rganization/project

Due Diligence

• Utilize Form
• Due diligence should be done on both the organization/company and its

principals

• Obtain references
• Conduct SAM check
• Looking for “red flags”

Program Support Recommendation

• The Program’s recommendation for level of support
• Reiteration of justification for this support

Economic Impact

• Financial Analysis
• Return on Investment
• Risk Assessment

Deal Points

• Criteria for Support
• Roles and Responsibilities of All Parties
• Remediation

Impact on Metrics

• Especially…jobs, investment, and sales/revenue increases
• Impact on diversity
• Focus on partnerships

Annexes

• Concept Note
• Budget
• Due Diligence Form

Summary

• Deal notes are both an art and a science
• Whatever you include, the client will want something in addition
• If you can’t tell the story in a way that “sells” the deal, it likely will not

happen

• Deal notes lay the foundation for everything else
• Most concepts never get to the deal note stage
• Deal notes must measure impact…otherwise they are a story without

a purpose