What Is a Deal Sheet?

A deal sheet is a tool for summarizing and organizing the key details of financial or business transactions. Deal sheets help deal managers track transactions, evaluate performance, and present information clearly to clients and stakeholders. Deal sheets fall into three main categories:

• Main Deal Sheet: This type outlines the critical points of a deal, such as payment terms and each party’s obligations.
• Summary Deal Sheet: Highlights a person’s or company’s contributions in past financial transactions. This type is useful for showcasing experience and expertise.
• Individual Deal Sheet: Focuses on a specific deal or deal type. It details relevant aspects to provide a deeper look into a specific transaction or transaction type.

Using a deal sheet CRM, template, or examples can help you streamline the creation process and help organize information clearly and efficiently. If you’re wondering, “What is a deal sheet?” this article will provide answers and help guide your approach to deal sheet creation.

What Is the Value of a Deal Sheet?

Deal sheets are valuable because they provide clarity, enhance communication, offer a reliable reference throughout the deal process, and allow decision-makers to evaluate potential benefits and risks.

• Clarity. Deal sheets break down complex transactions into easy-to-understand summaries. They empower all parties to understand key terms, financial details, and responsibilities. Clarity prevents assumption, confusion, and misunderstanding. 
• Communication. For deal managers, deal sheets enhance communication by organizing and presenting crucial information in easy-to-understand ways. 
• Reference. Additionally, deal sheets offer a constant reference point for tracking important terms, performance, past deals, and contributions. 
• Decision-Making. Deal sheets enable stakeholders to efficiently evaluate proposed deals’ potential advantages, risks, and outcomes.

Let’s take a deeper dive into the three kinds of deal sheets.

Terms and Conditions Deal Sheet

A terms and conditions deal sheet provides an overview of a proposed business transaction’s key terms and conditions. A properly formatted deal sheet of this type helps all parties make informed decisions. A deal sheet serves as a critical tool for:

• Decision-Making: Helps stakeholders evaluate the deal’s value and potential downside.
• Negotiation: Outlines terms for effective win-win discussions.
• Due Diligence: Provides essential details for thorough reviews.
• Deal Structure: Summarizes key financial and contractual components and obligations.

Components of a Main Deal Sheet

This deal sheet outlines the essential components of a business or financial transaction. It contains a detailed summary so all parties are informed and agree. Below are the critical elements of a typical deal sheet:

• Deal Description: Provides an overview of the transaction, highlighting what the deal involves.
• Defines Parties: Identifies the individuals or entities involved in the deal, including their roles and responsibilities.
• Financial Terms: Outlines the payment structure, pricing, and any other monetary details relevant to the deal.
• Dates and Timelines: Lists important deadlines, timelines, and expected deal duration.
• Due Diligence: Provides the essential details needed for comprehensive verification checks and compliance assessments.
• Governing Law and Jurisdiction: Defines what laws and jurisdiction will govern the proposed transaction.
• Confidentiality: Details the confidentiality terms to protect sensitive information.
• Key Terms and Conditions: Summarizes the most important terms that define the deal’s structure and obligations.

Summary Deal Sheets

A summary deal sheet outlines key financial transactions or deals highlighting an individual’s or company’s experience. It provides an overview of past work to demonstrate expertise, value contributed, and the role played in each transaction. They are commonly used by lawyers, investment bankers, real estate agents, and other business entities to showcase their track records. Summary deal sheets offer proof of experience and help demonstrate credibility.

Summary Deal Sheet Components

Key components include:

• Key Dates: Includes important dates such as each deal’s closing date or major milestones. This helps provide context for the timing and duration of transactions.
• Financial Data: Present relevant financial figures, such as the deal value, transaction size, or capital raised. This data demonstrates the scale of the deals and your role in managing them.
• Description of Roles: Clearly defines your specific role in each deal, whether negotiating, structuring, or managing the transaction. This helps differentiate your contributions from others involved.
• Description of Contributions: Highlights your contributions to the success of each deal. Mentions strategic decisions or key actions that directly impact the outcome.
• Deals That Didn’t Close: Includes deals that did not go through, explaining why. This shows your experience handling challenging situations and demonstrates transparency.
• Confidentiality: Omit confidential details and identities of clients or parties involved in the transactions. Focus on the general structure and outcome of the deal instead.
• Combine Similar Deals: For efficiency, combine similar transactions into one entry, especially if they share common features.

Finally, be prepared to discuss each entry in detail during interviews or presentations. A well-organized deal sheet provides clarity and demonstrates professionalism.

Individual Deal Sheets

An individual deal sheet is a comprehensive record defining an individual’s role in a business transaction. It details the person’s responsibilities, contributions, and impact and demonstrates expertise and experience during job applications, performance reviews, or client meetings. 

Individual deal sheets highlight a professional’s ability to navigate complex transactions in industries like investment banking, law, and real estate. Outlining key details of one specific deal, such as the deal’s size, structure, and outcome, is formal proof of a person’s skills and track record. It offers valuable insight into an individual’s experience handling high-stakes deals.

Individual Deal Sheet Components

An individual deal sheet highlights a professional’s involvement in a specific business transaction. It showcases skills, aptitude, and ability to negotiate and manage important deals. An individual deal sheet typically includes several key components that help to demonstrate the individual’s experience and expertise:

• Overview of the Transaction: A brief summary of the nature of the deal, such as mergers, acquisitions, or financing, providing essential context for the reader.
• Company Overview: A snapshot of the companies involved, including size, industry, and market position. This helps demonstrate the complexity or scope of the transaction.
• Relevant Dates: Key dates related to the deal, such as initiation, closing, and significant milestones. These offer insight into the duration and timing of the transaction.
• Financial Considerations: A breakdown of relevant financial details, such as deal size, capital raised, or valuations, to highlight the scale and economic impact of the transaction.
• Specific Roles: A clear description of the individual’s role in the deal, whether as a negotiator, deal manager, or advisor, providing insight into their responsibilities.
• Contributions: Specific actions and contributions during the deal, showing the value added by the individual.

A well-crafted deal sheet effectively illustrates the professional’s ability to handle complex, high-stakes transactions.

Example and Template for a Main Deal Sheet

This deal sheet example below provides a simplified overview of a hypothetical transaction. A well-organized deal sheet template ensures important details are documented, offering a comprehensive look into the professional’s role in the deal.

Deal Description

This deal involved the acquisition of ABC Sports by XYZ Corporation. The acquisition aimed to consolidate market share and enhance XYZ’s capabilities by integrating ABC’s advanced sponsorship management technologies.

The Parties

• Buyer: XYZ Corporation is a leader in sports sponsorship management with operations across North America.
• Seller: ABC Sports is a regional player in sponsorship management.

Financial Terms

Total Deal Value: $15 million

• Payment Structure:

• • $10 million in cash at closing
  • $5 million in XYZ Corporation stock
• Earn-out Agreement: An additional $2.5 million can be earned if specific revenue targets are reached over the next two years.

Dates and Timelines

• Letter of Intent Signing: On or before January 10, 2025
• Due Diligence Period: January 15, 2025 – March 30, 2025
• Deal Closure: April 15, 2025

Due Diligence

The due diligence process will thoroughly review ABC Sports’ financials, intellectual property, contracts, and operational efficiencies. XYZ Corporation’s legal and financial teams will verify the target’s asset valuation and identify potential risks before proceeding with the deal.

Governing Law and Jurisdiction

The deal will be governed under the laws of the state of Arizona. Any disputes arising from the deal are to be settled in the courts of Maricopa County, Arizona.

Confidentiality

Both parties agree to keep sensitive information regarding the deal confidential throughout the negotiation process and after closing.

For more information on deal-making tools and resources, visit the SponsorCX blog.

FAQs

1. What’s the difference between a main deal sheet and a contract? 

A main deal sheet outlines the important points to be included in a contract. A deal sheet is not binding but guides attorneys as they prepare a contract.

2. How should I organize the information in a summary or individual deal sheet?

Summary and individual deal sheets should be organized chronologically or by deal type (e.g., mergers, acquisitions, financings). Use clear headings like deal description, involved parties, financial terms, and roles. Ensure that each section is concise and highlights key contributions and outcomes. A deal sheet template can help maintain consistency.

3. Should I include deals that didn’t close on a summary deal sheet?

Yes, it is beneficial to include deals that didn’t close. They demonstrate your ability to manage complex negotiations and difficult situations. Provide a brief explanation of why the deal didn’t go through without revealing confidential details.

4. Can I include confidential information in my deal sheet?

No, you should never include confidential information, such as client names or sensitive financial data. Instead, provide a general description of the deal and its outcomes while keeping specific identities and details anonymous.

5. Do I need to describe every deal?

Condense like deals into a single entry. Don’t bore your evaluators with redundant deals.