Write a compelling teaser that prompts serious and qualified buyers to request more information on your opportunity.
Objective
Highlight the salient information in 1-2 pages, without revealing the name or location of your business.
Tasks
The objective of the teaser is to ENTICE buyers and MOVE them to sign your Non-Discourse Agreement (NDA) (Step 5) so they can receive a copy of your Selling Memorandum (Step 4). The teaser is posted on the various Business Listing Services (BLS) (Step 6) and circulated to prospective buyers (Step 7) and business brokers (Step 9).
Best Practices
A teaser is usually the FIRST CONTACT a buyer will have with your business opportunity. Teasers do not typically reveal the name or location of the business. They contain no personally identifiable information about the owners or customers. A good teaser is SHORT and to the point. It HIGHLIGHTS a compelling proposition, such as a history of profits, growing customer base, specialized expertise, intellectual property and/or competitive advantages.
It can be difficult for a business owner to be objective about his or her business, which is why the teaser is usually written by a good broker or copywriter with a flair for marketing.
Here are some best practices:
- Keep it to 1-2
- Avoid A lay person should understand it.
- The year founded and number of
- The geographic location of the business (city or county)
- A short description of the products and/or
- A 2-3-year financial summary and the run rate (projections) for the next year or Buyers like to see an annual summary of revenues, earnings, and margins. Chart this!
- If the company has recurring revenue or long-term contracts, note that in bold.
- The market and geographical territory served — and your relative share (if appreciable).
- The competitive landscape, especially advantages enjoyed by the business and if it has erected barriers to entry (without revealing specifics).
- Type of buyer and transaction being sought, e., asset sale, stock sale, recapitalization, management buyout, etc.
- Key investment rationale – why the business should be attractive to the right buyer.
- Contact information to request
Be honest, be accurate, and don’t overstate anything. Most importantly, don’t BURY the lead! Clearly state the main selling points and why the right buyer should be interested.
If posting on the BLS, the system will forward inquiries to you without revealing your name or contact details. If the teaser is to be circulated to specific buyer targets (Step 7), use an intermediary like an accountant, attorney, broker, or management advisor. See Step 8 for how to qualify buyers once they respond to your teaser.
Tools and Tips
In my experience, it’s best to create the teaser using PowerPoint or Keynote. Use a visual editor, not a word editor. If you already have a product or investor deck, start with that. Make good use of white space. Include images, charts, or graphs. Include a customer testimonial without revealing the customer’s name. Make it VISUAL. Tell a short story with pictures. Save and distribute as a PDF.
It’s a good idea to review a bunch of teasers in your space. You can do this by visiting the websites of the various Business Listing Services. Search for businesses by industry, region, and/ or revenue range. Take note of which teasers grab your attention. Share good examples with your copywriter or simply EMULATE the best elements of those you like.
Summary
The Blind Teaser entices serious and qualified buyers to investigate your opportunity, without revealing the specifics. It should be written for THEM. Think like a buyer. Present the opportunity like an advertisement, not like an executive summary. Grab the buyer’s attention and MOVE them to click on the “Contact Seller” link (if posted on the BLS) or click “Reply” if they received it via email.
Examples
- For Sale by Owner Salon Teaser
- For Sale by Owner IT Services Teaser