Teaser (M&A)

Teaser in the M&A Sales Process

The teaser, also known as an anonymous brief profile, is an important tool in the context of a company sale (M&A process). Its purpose is to draw the attention of potential buyers to the company for sale and to pique their interest without revealing the identity of the company.

Contents and Structure of a Teaser

A teaser typically contains the following information about the target company:

• Industry and business sector
• Products and services
• Size (revenue, employees)
• Market position and competitive advantages
• Customer structure and sales channels
• Growth potential and future outlook
• Background and motivation for the sale
• Transaction structure (share deal/asset deal, equity stakes)

This information is presented in an aggregated and anonymized form. Specific names, locations, or figures that would allow direct conclusions about the company are not included in the teaser.

Visually, the teaser is often attractively designed, featuring graphics, charts, and images. The length typically ranges from 2 to 5 pages. The goal is to compactly and convincingly highlight the attractiveness and potential of the company.

Creation and Distribution of the Teaser

The teaser is usually prepared by the seller themselves or by their M&A advisors. Care must be taken to provide enough information to spark the interest of potential buyers while not disclosing any confidential details.

The completed teaser is then distributed to a selected group of potential investors for whom the company could be fundamentally interesting. These can be strategic buyers such as competitors or companies from adjacent industries, as well as financial investors like private equity funds or family offices.

Distribution often takes place via specialized platforms and networks such as viaductus. Here, sellers can present their company in the form of an anonymous listing and connect with a large pool of qualified potential buyers.

Importance of the Teaser in the M&A Process

The teaser plays a central role in the early phase of a company sale:

• It is often the first point of contact between seller and potential buyers and thus crucial for the initial impression.
• It serves to pre-select suitable buyers and filter out unsuitable inquiries.
• It lays the foundation for further discussions and the exchange of confidential information with serious prospects.
• It helps the seller gauge market response and assess at what price and under which conditions a transaction can be realized.

The teaser marks the starting point of a multi-stage process that ideally culminates in one or more concrete offers for the company. It acts as an "appetizer" that arouses curiosity and stimulates buyer interest enough for them to take the next step and sign a confidentiality agreement to receive more detailed information.

At the same time, the teaser protects the seller from having to disclose too many details about their company too early. Anonymity preserves confidentiality toward employees, customers, and competitors and prevents uncertainties and disruptions in day-to-day operations.

Possible Alternatives to the Teaser

Although the teaser is established as a "door opener" in the M&A process, there are situations where it may be dispensable or less suitable:

• In a highly confidential sales process, the seller may directly and selectively approach a few potential buyers and enter discussions under confidentiality agreements.
• If the seller already has a concrete offer from an interested party and wishes to negotiate exclusively with them, creating a teaser to attract buyers is unnecessary.
• For complex transactions or special situations such as restructurings or distress sales, individual solutions are often required that do not fit into the standardized teaser format.
• In some scenarios, such as an early management buyout (MBO) desire or a family-internal succession, a formal M&A process with a teaser may also be unnecessary.

However, in the majority of company sales, the teaser has proven to be an effective means of buyer outreach. For the typical mid-sized company seeking a structured, competitive sales process, it is usually the method of choice to reach a broad base of potential buyers.

It takes a certain level of finesse and experience to find the right balance between information content and confidentiality protection and to use the teaser optimally in the sales process. M&A advisors and platforms like viaductus can provide valuable support. Their AI-powered listing creator assists in drafting an appealing teaser, and their business exchange ensures targeted distribution to a qualified buyer pool.

A professionally prepared and distributed teaser is a key success factor in setting the right course from the outset for a successful company sale.