The first and arguably most important document in marketing a business is the teaser, a one to two page marketing brief which is sent to prospective buyers. Good teasers are designed to attract the interest of a broad spectrum of buyers and communicate the essence of the investment opportunity. To ensure a good head start in the sale process, the teaser key requirements should include:
Competitive Advantage – Teaser Key Requirements
It is essential to articulate the unique characteristics of a company and its core activities. The competitive advantage outlines how your company generates its profits and how it can maintain and grow these profits over the long-term. Growth opportunities are a key factor in the investor/buyers valuation.
Ensure you cover the key business metrics, revenue, margins, head count and indicative location.
State Your Intentions
Are you looking to exit (retire) with ownership transition, a liquidity event (sell a portion), growth capital (additional equity investor) to grow your business or a recapitalisation or consolidation of the shareholder base. Prospective buyers appreciate business owners who are clear and upfront about their reasons for a sale or other type of transaction.
The teaser key requirements hold true throughout the deal and transaction process – be truthful with no surprises. It is important not to withhold key information , not to exaggerate financials or projections. It is inevitable that key information will be uncovered at some stage during due diligence and could be seriously harmful to your credibility and ultimately the chances of a successful deal.
As noted, teasers have typically been a written brief, however access to on-demand video production at reasonable cost is presenting an opportunity for the business owner(s) to ‘sell’ directly to potential buyers as part of the process. A short, well planned video offers far greater insight to the business and can communicate fact and passion in equal measure, significantly improving buyer interest.
A teaser is often used by a buyer to promote and champion a business sale within the buyer organisation. Ensure that you meet the teaser key requirements to assist your buyer throughout the business sale process.