Chapter 10: Present the Recommendation

Present the Recommendation

Package the pricing call, case discipline, binding constraint, and top risks into a recommendation that a principal can read without reopening the entire model.

Decision output: Final Recommendation Package. Case requirement: include full decision package state rules.

Inputs

Inputs

  • The approved decision state from the offer-band logic.
  • The primary case and downside case used for the recommendation.
  • The top unresolved risks and the next diligence requests.

Example card

Recommendation memo that stands on its own

The memo leads with the recommended bid, the case used, the binding constraint, and the top unresolved risks so a principal can understand the logic without reopening the whole model.

  • Recommendation: pursue at $29.8M, stretch to $30.3M only if tax reset is capped.
  • Primary case: in-place bridge to stabilized lift over 18 months.
  • Top risks: tax revaluation, insurance renewal, and lease-up pace.

Analysis

How to analyze it

The recommendation package should let a principal understand the pricing call without flipping back through every tab. Lead with the answer, then show the logic that makes it credible.

  • Name the primary case and downside case explicitly.
  • State the binding constraint in one sentence.
  • Carry open risks forward instead of burying them in appendix-style notes.

Output

What output you should produce

Output artifact: Final Recommendation Package

  • A final decision package with the bid ladder or collapse state.
  • A short recommendation narrative that can stand on its own.
  • A prioritized list of the top risks and follow-up diligence items.

Common mistakes

Common mistakes

  • Reporting the recommendation without saying which case it relies on.
  • Hiding unresolved issues in the model instead of the memo.
  • Changing the price ladder language from the offer-band logic.

Price meaning

What this means for price

The recommendation package is where the pricing call becomes organizationally usable. If the package is unclear, the price conclusion will not survive contact with decision-makers.