{M&A Process/6} Marketing materials

We use the information gleaned from the company and the market study to prepare marketing materials to position the company, tell its story, and address issues up front where appropriate.

These materials include a one-page summary masking your business’s identity (a “no-name teaser” or “teaser”), as well as a detailed confidential information memorandum (a “CIM”) that, when appropriate, is accompanied by a financial supplement with pro forma and historical financials and pre-arranged (“stapled”) financing.

The CIM typically includes

▶ An executive summary

▶ A business overview and history

▶ The organizational structure within a corporate family, if applicable

▶ Summary of product and service offerings

▶ Summary of current sales and marketing efforts

▶ Growth opportunities

▶ Competition Risks

▶ Summary and recast of financials

▶ Where appropriate for interested parties, the financial supplement will include more in-depth historical financials, projections, and other information, such as revenue mix and other items.

The marketing materials need to address common buyer around:

▶ Why the seller is considering a transaction

▶ What the desired transaction is and the seller’s post-closing role

▶ Profitability

▶ What makes the business different

▶ Growth opportunities

▶ Competitive advantages

▶ Brand Marketing strategy

▶ People

In addition, getting out ahead of negatives like lack of growth, sales limitations, customer concentration issues, and management limitations is also often helpful. These issues will come up in diligence, and getting in front of them allows the seller to be viewed as forthright and transparent, which is particularly important in a process that depends heavily on trust.