Teaser

Definition:

A teaser is a brief, one- to two-page document that provides potential buyers or investors with an initial overview of a company for sale or an investment opportunity. It is prepared by the seller or their advisor and contains essential information without disclosing the company's identity to maintain confidentiality. The goal is to pique the interest of potential buyers, who can receive more detailed information after signing a Non-Disclosure Agreement (NDA).

Contents of a Teaser:

• Company Description: Brief overview of the products or services offered and the industry in which the company operates.
• Financial Highlights: Summary of historical financial data and future projections, such as revenue and EBITDA.
• Market Position: Information on the company's geographic presence and competitive advantage.
• Transaction Structure: Details on the type of transaction sought, e.g., full sale or partial sale.

Significance in the M&A Process:

The teaser is often the first point of contact between the seller and potential buyers. It serves to generate interest and identify potential buyers willing to conduct further due diligence after signing an NDA. A well-crafted teaser can make the difference in whether a potential buyer decides to pursue the process further.