Key Features
A clear distinction is made between the two documents. The teaser contains a brief description of the company for sale—importantly—in an anonymized form. Only if there is further interest, and after a confidentiality agreement has been signed, are the name and additional details disclosed. This is typically done by providing a detailed information memorandum or exposé. A helpful tip here is to consistently consider matters from the buyer’s perspective.
Contents of a Teaser
The purpose of the teaser is to spark interest among potential buyers, who are often evaluating many projects at the same time. The reader should therefore be able to grasp the information that is essential to them at a glance. A concise, one-sentence description of the company as an introduction should be carefully crafted, as this will later serve as the basis for outreach. A table presenting key company data—such as revenue, number of employees, or year founded—is then supplemented with a brief profile. This section should describe the business model, the market, the company’s development and potential prospects, as well as its unique strengths (USP?).
The goal is to pique curiosity! The presentation should therefore be in a positive, promotional tone. However, to avoid wasting time on unsuitable prospects—an important aspect of the process—it is essential to exercise good judgment. Finally, the teaser is rounded out with a description of the intended transaction structure, the asking price, and, if applicable, any requirements for a buyer.
Contents of a Prospectus
If someone expresses concrete interest, they will also sign a confidentiality agreement in order to subsequently receive a detailed exposé. This is the space to describe the company or group of companies in detail, present the financial situation, and outline the outlook with projected figures. It is important to note that, in any subsequent process—and possibly even after a sale—reference will be made time and again to the information contained in the exposé.
To avoid potential liability, it is therefore always advisable to work closely with the seller, who should carefully review and approve the content. A corresponding indemnification clause is mandatory and makes it clear to the buyer that they must verify all information during the due diligence process. A well-prepared and truthful exposé builds trust, which is absolutely crucial to the success of the rest of the sales process!
Classic elements of a property profile include a detailed presentation of the business situation, a brief historical overview, a description of the legal and tax circumstances, the employee structure (organizational chart), and, if applicable, information on existing real estate. Particular attention should be paid to the description of the business model, as this section not only addresses the relevant market and its development but should also mention collaboration with suppliers and any potential dependencies. Currently, topics such as problems with the procurement of intermediate goods—keyword: supply chains—or raw materials are also on the agenda. Since questions on these topics are sure to arise, providing information here in advance can help build trust.
Current Trends
Recently, three additional topics have come to the fore that should be mentioned in an exposé: the existing IT architecture, the status of digitalization, and the sustainability of the business model—specifically, measures that have already been decided upon or are even currently being implemented in this context.
With this preparation, a series of productive management discussions should follow.
