Writings remain, words vanish…
When a broker introduces a business to potential buyers, the summary that is traded is called the teaser. This is a one-page summary of the opportunity. The important points to find here are:
- A good description of the company’s industry and business model
- Precision in the market niche is always appreciated, e.g., for truckers are we in LTL, bulk, local, US South, etc.
- The size of the company, are we in the presence of sales of 1 million or 25 million,
- An idea of the profitability, the financial situation of the company,
- Approximate geography, some buyers are specific in their research.
- Deal specific considerations – or “deal breakers” to use another industry term.
- Does the company own its building or is it rented. If it is owned, can it be bought or must it be leased,
- At the transition level, what are the requirements? does the seller want to leave very quickly (sometimes for health considerations), do they want to stay long term, or are we completely flexible,
- The expectations of a buyer, do we require formal proof of availability of funds before negotiations, are we open to all buyers or if the seller reserves the right to exclude parties.
- Contact information of the professionals. The teaser can be sent to bankers, lawyers, accountants, or other brokers who will forward them to their clients – you must know who to call