Teaser
AdvancedA teaser is a short, anonymous document sent to potential buyers or investors at the start of a sale process, giving a brief overview of a business to gauge interest without revealing its identity.
In a typical sale process, the seller's adviser first contacts a list of potential buyers. The teaser, often only one or two pages long, describes the business in general terms: its industry, location, size, key strengths and summary financials, such as revenue and EBITDA ranges.
The company is usually not named, and details are kept vague enough that it cannot easily be identified. This protects confidentiality, since the seller may not want employees, customers or competitors to know the business is for sale.
For example, a teaser might describe a market-leading specialist food manufacturer in Western Europe with revenue of around 80,000,000 and strong growth, without naming the company.
Interested buyers sign a non-disclosure agreement, after which they receive more detailed information, typically a confidential information memorandum. The teaser helps the adviser identify serious buyers efficiently.
For worked examples and full lessons, visit notesbysara.org.