When it comes to selling a company, one critical document encountered early in the process is the “Teaser.” Although it’s only one page (usually), its impact on a transaction’s success cannot be overstated.
A Teaser is a concise, anonymous document that introduces potential buyers to a company. The goal of a Teaser is to engage potential buyers and garner interest, without prematurely disclosing sensitive information. Typically, a Teaser includes a high-level snapshot of a business (industry, market position, and key financial metrics) and investment highlights (unique strengths and opportunities). A well-written Teaser should be clear, concise, and highlight the key strengths of the company, in an attractive manner. At the same time, the Teaser must avoid disclosing any identifying information, to protect confidentiality. Because a Teaser may be distributed to a broad range of potential buyers (from strategic acquirers to private equity firms), anonymity is paramount – even more so in the aerospace and defense sector due to the sensitive nature of the work.
A well-crafted Teaser, along with a well-managed solicitation effort, ensures that only serious, qualified buyers proceed to the next step, which typically involves signing a Non-Disclosure Agreement before receiving a more detailed Confidential Information Memorandum (CIM). This screening process saves time and resources for both the seller and the buyers.
While the Teaser may be only a one-page document, with no identifying information, it is a crucial part of the sale process, and we encourage you to work with a qualified M&A firm to ensure yours is well-written when the time comes to sell your middle market aerospace & defense company.
Have a great day everyone,
Max McFarland
Associate
