Investment Opportunity Teaser & Non-Disclosure Agreement (NDA)
An Investment Opportunity Teaser, or simply an Investment Teaser, is a 2- or 3-page document sent to potential buyers to pitch them on the opportunity for an acquisition. It is the first piece of information about a business that prospective buyers receive. The teaser is written in such a way that it captures interest without disclosing or pointing to the identity of the company for sale.
While the Investment Teaser will not contribute to the buyer’s perception of the business as much as the Confidential Information Memorandum, each step of the process makes a difference. It is important that the design and content of the teaser be professional so that potential buyers get a positive feeling when they read it.A good Investment Teaser tells the reader what is great about the business—the ‘why you should buy.’
The Investment Teaser should include a financial snapshot, with five years of revenue, gross profit, and EBITDA listed. The teaser should also feature the most significant highlights from the Confidential Information Memorandum—one page of 8 or 10 things that will be attractive to buyers.
Those buyers who are interested in seeing the Confidential Information Memorandum after reading the teaser will first sign a Non-Disclosure Agreement (NDA) to prevent the identity and confidential information of the business from being disclosed.