An investment teaser is a brief, professional document that introduces an investment opportunity to potential strategic investors or financiers.
Teasers are one of the most important pieces of documentation in the arsenal of a business person or organization. They are sent out to prospective investors to get them interested in a deal before more-detailed information is sent out.
The document should be a one- or two-page summary of the process involved in selling the company, including its unique selling points and how potential investors will reap immediate financial rewards if they invest.
Considerations for an investment teaser:
- The name of the company should not be disclosed in the document.
- It should include relevant graphics to give potential buyers better insight into the product or services provided by the company.
- The teaser should not exceed two pages in length in other not to make the buyers lose interest.
- It is important to put down only key information and to keep the content concise.
Outline of a good One-pager
- Investment Highlights: It includes three to five points that outline the investment opportunity’s unique selling points (USP).
- Company Overview: A company description should be provided to give potential buyers a better understanding of the company and also a brief description of the geographical regions and competitive landscape in which the company operates.
- Customers overview: The company’s credibility is built up when major customers are included in the investment teaser.
- Deal Information: Details on the type of transaction should be indicated (partial sales, buyout, total sale, strategic partnership, etc.).
- Product or sale mix: A list of the main product or services offered and revenue generated from it.
- Financial summary: A summary of key historical financial figures and forecasted figures. It should include at least two years of projected financial figures and historical data.
Summary of an investment teaser
In an investment teaser, stating your company’s competitive advantage is very important because the essence of your company’s value is tied to how sustainable its competitive advantage is.
Competitive advantage dictates your company’s ability to generate and sustain profitable operations over the long term. Investors seek to understand this as well and it forms the basis for their estimation of your business valuation.
Lastly, an investment teaser is vital for the transaction process and its main objective is to attract interest and potentially execute a deal with the seller. The primary purpose of this document is to entice potential buyers to come to the deal-making table.
NOTE: Teasers are typically prepared on a no-name basis (which means it is prepared without disclosing the company’s name). The company information is not directly copied from the company’s website, doing so may easily allow potential buyers to identify the company when it wishes its identity kept confidential.
Perhaps, you are not sure what is best for your new deal but do not hesitate to connect with a member of our team.
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